WEDNESDAY, JANUARY 7, 1987
26
+HOWEVER, CIRCUMSTANCES AROSE WHICH PREVENTED THE BILL FROM BEING ENACTED BEFORE THE END OF THE YEAR AND CONSEQUENTLY
I SHALL NOW NEED TO MOVE TWO MINOR AMENDMENTS AT THE COMMITTEE STAGE TO REFLECT ITS ENACTMENT THIS YEAR RATHER THAN LAST YEAR,+
THE AMENDMENTS ALTER THE TITLE OF THE BILL AND DEEM IT TO HAVE COME INTO OPERATION ON DECEMBER 31, 1986, SO THAT THERE IS NO DOUBT THAT ON JANUARY 1 1987 SECTION 2 OF THE PUBLIC HEALTH AND MUNICIPAL SERVICES (AMENDMENT) ORDINANCE 1986 AMENDED THE DEFINITION OF +FOOD+ IN SECTION 2 OF THE PRINCIPAL ORDINANCE AS WAS INTENDED.
DISCRETION PROPOSED IN INSURANCE REQUIREMENTS *****
A BILL SEEKING TO GIVE THE INSURANCE AUTHORITY DISCRETION TO AUTHORISE OVERSEAS INSURERS, ON APPLICATION, TO MAINTAIN ACCOUNTS IDENTIFYING ASSETS AND LIABILITIES ATTRIBUTABLE TO THEIR LONG-TERM BUSINESS IN HONG KONG ONLY, INSTEAD OF GLOBALLY, WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE INSURANCE COMPANIES
(AMENDMENT) BILL 1986, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID THAT ALTHOUGH THESE DISCRETIONARY POWERS WERE BEING INTRODUCED, EXISTING LEGISLATIVE REQUIREMENTS SHOULD STILL BE MAINTAINED AS A GENERAL PRACTICE.
UNDER THE INSURANCE COMPANIES ORDINANCE, INSURERS OPERATING IN HONG KONG WERE REQUIRED TO ESTABLISH A SEPARATE FUND FOR THEIR LONG TERM BUSINESS, AND MAINTAIN ACCOUNTS FOR IDENTIFYING THE ASSETS AND LIABILITIES OF THAT FUND. THESE REQUIREMENTS RELATED TO AN INSURER'S LONG TERM INSURANCE ON A WORLDWIDE BASIS.
MR JACOBS SAID THAT A FUND THUS CREATED WOULD SERVE TO PROTECT THE LONG TERM POLICY-HOLDERS IN HONG KONG ON THE WINDING UP OF THE INSURER IN SO FAR AS THE ASSETS REPRESENTING THAT FUND FELL UNDER THE JURISDICTION OF THE COURT IN HONG KONG.
BUT SINCE THE ENACTMENT OF THE ORDINANCE IN 1983, IT HAD BEEN FOUND THAT THESE ACCOUNTING REQUIREMENTS POSED DIFFICULT PROBLEMS FOR A SIGNIFICANT NUMBER OF AUTHORISED OVERSEAS INSURERS.
/+THESE INSURERS