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IN
ADDITION TO COMPLYING WITH THE REGISTRATION REQUIREMENTS, MR NENDICK POINTED OUT THAT A SCHEME'S "DESIGNATED PERSON (I.E. A PERSON WHO UNDERTAKES TO PERFORM CERTAIN SPECIFIED DUTIES) WAS ALSO RESPONSIBLE FOR SUBMITTING AN ANNUAL RETURN, ANNUAL AUDITED ACCOUNTS AS WELL AS AN ANNUAL AUDITOR'S CERTIFICATE, AND WHERE APPROPRIATE, ACTUARIAL CERTIFICATE TO THE REGISTRAR.
AN
"THESE PROVISIONS ENSURE THAT PROPER ACCOUNTS ARE KEPT, THAT THE SCHEME IS FUNDED IN ACCORDANCE WITH THE RULES OF THE SCHEME, AND THAT ADEQUATE FUNDS ARE THERE TO MEET THE SCHEME'S LIABILITIES, HE SAID.
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ON THE ROLE OF THE REGISTRAR, MR NENDICK SAID THE REGISTRAR WOULD NOT PLAY AN ACTIVE PART IN REGULATING PRIVATE RETIREMENT SCHEMES. "INSTEAD, A NUMBER OF INTERVENTIONARY MEASURES ARE AVAILABLE TO THE REGISTRAR IF THE SITUATION SO REQUIRES.
"HE MAY SEEK INFORMATION ON THE OPERATION OF THE SCHEME, INCLUDING AN
EXTRAORDINARY AUDITOR'S CERTIFICATE AND AN ACTUARY'S CERTIFICATE.
"HE
MAY ALSO APPOINT A PERSON TO CONDUCT AN INQUIRY INTO THE OPERATION OF THE SCHEME ITSELF, HE SAID.
"THE ULTIMATE SANCTION AGAINST NON-COMPLIANCE OF THE LEGISLATION IS DE-REGISTRATION. SCHEMES MAY BE DE-REGISTERED WHERE THERE IS A FAILURE TO COMPLY WITH THE REPORTING, DISCLOSURE OR FUNDING REQUIREMENTS OF THE BILL," HE SAID.
MEMBERS OF A DE-REGISTERED SCHEME MAY APPLY TO THE HIGH COURT FOR CERTAIN COURT ORDERS.
LAW,
"FOR EXAMPLE, WHERE THE SCHEME IS SET UP UNDER HONG KONG THE HIGH COURT MAY ORDER THAT THE SCHEME BE WOUND
UP.
WHERE THE ASSETS OF SUCH A SCHEME ARE INADEQUATE TO MEET ITS LIABILITIES THE COURT MAY DETERMINE A SUM EQUAL TO THE SHORTFALL AND GIVE JUDGEMENT AGAINST THE EMPLOYER FOR THAT AMOUNT, MR NENDICK EXPLAINED.
"
HOWEVER, WHERE THE SCHEME WAS NOT GOVERNED BY HONG KONG LAW, THE COURT COULD NOT MAKE A WINDING UP ORDER, HE POINTED OUT,
"THE COURT MAY, UPON APPLICATION DIRECT AN INQUIRY INTO THE ENTITLEMENTS OF THE MEMBERS OF THE SCHEME IN HONG KONG. WHERE THERE IS A SHORTFALL THE COURT MAY GIVE JUDGEMENT FOR THIS AGAINST THE EMPLOYER. MEMBERS MAY THEN SEEK ENFORCEMENT OF THE JUDGEMENT UNDER THE RELEVANT JURISDICTION, MR NENDICK SAID.
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TURNING TO THE ROLE OF THE SCHEME MEMBERS, HE EXPLAINED THAT WHERE A MAJORITY OF THE MEMBERS OF THE SCHEME SO WISH, A CONSULTATIVE COMMITTEE COULD BE SET UP. "THE BILL PROVIDES THAT AN EMPLOYER IS REQUIRED TO CONVEY THE COMMITTEE'S VIEWS TO THE DESIGNATED PERSON OF THE SCHEME.'
/FURTHERMORE, THE