22
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Property is confined to first legal mortgages of properties in Hong Kong and is a retained item from the existing list.
Cash and short-term investments include deposits, certificates of deposit, bills of exchange, promissory notes and short-term debt securities issued or guaranteed by an authorised institution or an exempted body.
"The Working Party emphasises that it is not recommending the inclusion of derivatives per se as a trustee investment but for hedging purposes only," the spokesman stressed.
"Use of derivatives is strictly restricted to hedging specific investments already held or to be purchased at the same time, and subject to obtaining and heeding the advice of an investment adviser under stringent conditions. Moreover, derivatives are confined to those traded on a market," he added.
The Second Schedule was last revised in 1984 and a review has been called for with the passage of time.
"Certain items in the original list has become inappropriate, archaic or irrelevant. The revision is necessary to bring the Schedule up to date with the developments in the financial and capital markets both here and elsewhere," he said.
"The revised list is capable of being updated automatically without the need for frequent legislative amendments. This is achieved by including instruments that draw reference from other legislation that is updated on a regular basis," the spokesman added.
The revised list is the result of consultation with the private sector conducted in June last year. Some 20 submissions were received including the HK Capital Markets Association, HK Investment Funds Association, HK Trustees' Association, HKAB, DTC Association, Bar Association, Law Society, HKSA, Federation of Insurers PAA, MTRC, KCRC, Housing Authority, Director of Accounting Services and the Secretary for Treasury.
End/Friday, May 19, 1995