7
FRIDAY, NOVEMBER 29, 1991
"THE AIM OF THE EXISTING POLICY AND LEGISLATION IS TO MAINTAIN A BALANCE BETWEEN THE NEED TO SAFEGUARD FREEDOM OF EXPRESSION AND INFORMATION ON THE ONE HAND, AND THE NEED TO PROTECT YOUNG PEOPLE AGAINST ANY POSSIBLE CORRUPTING INFLUENCE OF SUCH ARTICLES ON THE OTHER, HE ADDED.
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THE AMENDMENT BILL, UPON ENACTMENT, WILL ONLY BE BROUGHT INTO FORCE AFTER THE EXPIRY OF A THREE-MONTH GRACE PERIOD.
INSURANCE CO (AMENDMENT) BILL GAZETTED
THE INSURANCE COMPANIES (AMENDMENT) (NO. 2) BILL 1991 GAZETTED TODAY (FRIDAY) SEEKS TO EMPOWER THE INSURANCE AUTHORITY (IA) TO APPOINT A PERSON TO ADVISE ON THE MANAGEMENT OF AN INSURER THAT IS IN SERIOUS DIFFICULTIES OR TO ASSUME SUCH MANAGEMENT FUNCTIONS.
WHILE THE PRESENT POWERS CONTAINED IN THE ORDINANCE WILL ENABLE THE IA TO IMPOSE REQUIREMENTS TO REDUCE THE IMPACT OF ADVERSE FEATURES ON AN INSURER'S OPERATIONS, THESE ARE INADEQUATE TO ENSURE THAT AN INSURER, WHOSE STATE OF AFFAIRS ARE SUCH THAT THE INSURING PUBLIC IS BEING EXPOSED TO SERIOUS RISK OF LOSS, WILL BE PRUDENTLY MANAGED.
"THE IA IS AT PRESENT RESTRICTED IN ITS ABILITY TO PREVENT THE BUSINESS OF AN INSURER FROM DEVELOPING INTO A SITUATION WHERE THE ONLY OPTION IS WINDING UP, WHICH CAN BE DAMAGING TO THE INTERESTS OF THE POLICY HOLDERS AS WELL AS THE GENERAL REPUTATION OF THE INSURANCE MARKET IN HONG KONG," A GOVERNMENT SPOKESMAN SAID.
HIGHLIGHTING THE PURPOSE OF THE AMENDMENT, THE SPOKESMAN EXPLAINED THAT IN ORDER TO OVERCOME THE ABOVE INADEQUACY AND IN THE INTEREST OF THE INSURING PUBLIC, THE IA SHOULD BE GIVEN THE ADDITIONAL INTERVENTIONARY POWER OF BEING ABLE TO APPOINT A PERSON TO ADVISE INSURER ON THE MANAGEMENT OF ITS AFFAIRS, BUSINESS AND PROPERTY ASSUME SUCH MANAGEMENT FUNCTIONS.
AN OR
HOWEVER, THE SPOKESMAN STRESSED THAT THIS POWER COULD ONLY BE EXERCISED WHERE THE IA CONSIDERED THAT ITS OTHER INTERVENTIONARY POWERS WOULD NOT PROVIDE ADEQUATE SAFEGUARDS.
"WHERE THE INSURER IN SERIOUS DIFFICULTIES IS INCORPORATED OUTSIDE HONG KONG,
THE REMIT OF THE ADVISOR OR MANAGER WILL ONLY EXTEND TO THAT PART OF THE INSURER'S BUSINESS AS WELL AS PROPERTY WHICH IS CARRIED ON, LOCATED IN, OR MANAGED, IN OR FROM HONG KONG, THE SPOKESMAN EXPLAINED.
LONGER
"WHERE IT APPEARS TO THE IA THAT THE APPOINTMENT IS NO NECESSARY, WHICH NORMALLY MEANS THAT THE PROBLEMS LEADING ΤΟ THE APPOINTMENT HAVE BEEN RECTIFIED OR WHERE AN APPEAL TO THE FINANCIAL SECRETARY AGAINST THE APPOINTMENT HAS BEEN SUCCESSFUL, THE APPOINTMENT OF THE ADVISOR OR MANAGER SHALL CEASE,' THE SPOKESMAN ADDED.
П
/THE BILL