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FRIDAY, NOVEMBER 28, 1986
THE SPOKESMAN POINTED OUT THAT CERTAIN FOREIGN INSURERS WHOSE MAIN BUSINESS WAS OUTSIDE HONG KONG COULD NOT COMPLY WITH THE SECTION 22 REQUIREMENT BECAUSE OF THE LAW OF THEIR RESPECTIVE COUNTRIES OF INCORPORATION.
+FULL COMPLIANCE WOULD ENTAIL EXTENSIVE CHANGES IN OR EVEN A TOTAL RESTRUCTURING OF THEIR ACCOUNTING SYSTEMS WHICH, IF DEEMED POSSIBLE, WOULD BE AN EXPENSIVE EXERCISE,+ HE SAID.
+THESE INSURERS, WHICH ARE WELL-ESTABLISHED AND OF HIGH INTERNATIONAL STANDING, MIGHT BE FORCED TO WITHDRAW FROM HONG KONG IF THEY HAVE TO ADOPT THEIR WORLDWIDE ACCOUNTING SYSTEM IN ORDER TO COMPLY WITH THE HONG KONG LEGISLATION, HE ADDED.
THE SPOKESMAN STRESSED THAT THE PROPOSED AMENDMENT WOULD NOT ERODE THE EXTENT OF PROTECTION FOR HONG KONG POLICY HOLDERS.
HE SAID ACCOUNTS IDENTIFYING ASSETS AND LIABILITIES ATTRIBUTABLE TO THE LONG TERM BUSINESS IN HONG KONG WOULD EQUALLY FACILITATE THE SECURING OF THE NECESSARY ASSETS BY THE INSURANCE AUTHORITY TO MEET THE INSURER'S HONG KONG LIABILITIES WHEN REQUIRED.
+WHILE THE PROPOSAL WOULD NOT PROVIDE IMPROVED PROTECTION FOR THOSE HONG KONG POLICY HOLDERS OF THE OVERSEAS INSURERS CONCERNED, PROTECTION WOULD HOWEVER BE ENHANCED GENERALLY THROUGH IMPROVED DIALOGUE WITH SUPERVISORY AUTHORITIES OF THE RESPECTIVE COMPANIES' COUNTRIES OF ORIGIN, + HE ADDED.
THE PROPOSAL HAS THE SUPPORT OF THE INSURANCE ADVISORY COMMITTEE AND THE LIFE INSURANCE COUNCIL OF HONG KONG.
THE BILL IS EXPECTED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON DECEMBER 10, 1986.
COMMENTS ON THE BILL MAY BE SENT TO THE MONETARY AFFAIRS BRANCH AT ADMIRALTY CENTRE, HARCOURT ROAD, AND THE OMELCO OFFICE AT JACKSON ROAD.
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