10

FRIDAY, APRIL 10, 1992

OF THE

"THE REVISED BILL RETAINS ALL THE GUIDING PRINCIPLES REGULATORY SYSTEM WHICH WERE CONTAINED IN THE 1991 BILL: SEPARATION OF ASSETS FROM THOSE OF THE EMPLOYER; LIMITATION ON THE EXTENT OF SELF-

OF FUNDING;

AUDITING OF INDEPENDENT INVESTMENT;

PROVISION PROPER SCHEME ASSETS AND LIABILITIES; AND DISCLOSURE OF INFORMATION TO SCHEME MEMBERS.

"HOWEVER, THE PROVISIONS ARE SET OUT IN A READILY COMPREHENSIBLE MANNER," THE SPOKESMAN SAID.

SIMPLER AND MORE

PROCESS

"FURTHER, IN THE LIGHT OF COMMENTS RECEIVED DURING THE

NEW PROVISIONS HAVE BEEN OF REDRAFTING OF THE BILL, A NUMBER OF INCORPORATED IN THE REVISED BILL.

INSURANCE

"THE FIRST OF THESE IS A SIMPLIFIED REGISTRATION THESE 'POOLED' RETIREMENT 'POOLED' RETIREMENT SCHEMES. NORMALLY COVERED BY A MASTER TRUST DEED OR THEIR ASSETS POOLED TOGETHER FOR INVESTMENT AND THEIR LOOKED AFTER BY THE TRUSTEE/INSURER.

PROCESS FOR SCHEMES ARE

POLICY, WITH ADMINISTRATION

"THE SIMPLIFIED PROCEDURE WILL BE SEEN AS A MAJOR BY THE MAJORITY OF BUSINESS ESTABLISHMENTS IN HONG KONG, NUMBER OF THEM ARE SMALL ESTABLISHMENTS AND ARE LIKELY TO IN POOLING AGREEMENTS," THE SPOKESMAN SAID.

HE POINTED OUT THAT THERE IS ALSO A CHANGE REQUIREMENTS FOR DEFINED BENEFIT SCHEMES.

IMPROVEMENT SINCE A GREAT PARTICIPATE

IN THE FUNDING

ARE GENERALLY SERVICE

THE BENEFITS THESE ARE SCHEMES UNDER WHICH DETERMINED BY A FORMULA WHICH TAKES INTO ACCOUNT THE YEARS OF AND THE FINAL SALARY OF THE SCHEME MEMBER.

DEFINED BENEFIT SCHEMES "THE PREVIOUS BILL STIPULATED THAT

FOR REMAIN INSOLVENT FOR THREE CONSECUTIVE YEARS MAY BE LIABLE DEREGISTRATION.

WHICH

"ADVICE FROM THE

EMPLOYER

BODIES POINTS OUT THAT EVEN

THE IMPLEMENTED

FUNDING

THOUGH AN

MAY

PROFESSIONAL

HAVE

FULLY

RECOMMENDATIONS GIVEN BY AN

BEYOND THE CONTROL

OF THE

EMPLOYER AND THE

ACTUARY, THERE MAY BE MARKET FACTORS

ACTUARY

WHICH WOULD

PREVENT A SCHEME FROM ATTAINING SOLVENCY WITHIN THE THREE YEAR PERIOD.

YEARS FOR HE ADDED.

"THE PRESENT BILL ALLOWS A FURTHER PERIOD OF THREE ANY MARGINAL DEFICIT WHICH MAY ARISE TO BE MET IN FULL,"

THE SPOKESMAN SAID THE OPPORTUNITY HAS BEEN TAKEN TO STRENGTHEN THE PROVISIONS IN RESPECT OF THE WINDING UP OF RETIREMENT SCHEMES.

UP "THE PREVIOUS BILL EMPOWERED THE COURT TO ORDER THE WINDING

то GIVE OF A SCHEME WHICH IS GOVERNED BY THE LAWS OF HONG KONG AND

AND BE REALISED ASSETS SHOULD DIRECTIONS

TO HOW THE SCHEME

ΤΟ PROVIDE DISTRIBUTED. CERTAIN NEW PROVISIONS HAVE NOW BEEN ADDED STATUTORY GUIDANCE FOR THE COURT TO EXERCISE THE POWERS.

AS

/"AS IN

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