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As an additional safeguard, we propose that, where the structure of a grouping of companies changes in such a way that a relevant employer in a scheme ceases to comply with the specified relationship requirement, it must withdraw from the scheme as soon as is reasonably practicable.
Mr President, with these remarks, I commend the Occupational Retirement Schemes (Amendment) Bill to Members.
End/Wednesday, July 5, 1995
Occupational Retirement Schemes (Amendment) Bill: committee stage
Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, at the committee stage of the Occupational Retirement Schemes (Amendment) Bill 1995 in the Legislative Council today (Wednesday):
Mr President,
I move that the clauses specified be amended as set out in the paper circulated to members.
Proposed sections 10(1)(d) and (e) as well as section 21A are amended, through clause 5(1) and clause 12, to provide that relevant employers operating exempted schemes and registered schemes shall notify the Registrar of a change to the name of the scheme and a change of the relevant employer within one month of the change. These amendments revise the requirement in the Bill for prior approval of the changes by the Registrar.
Similarly, proposed section 67(2) is amended, through clause 16(2), to provide that the representative employer of a scheme covering a group of companies shall notify the Registrar of a change of representative employer, of a change of the scheme's name and any change of the scheme's administrator within one month of the change.
Proposed sections 10(3) and (3AA), 21A(3) and (4), 67(3), (8A) and (8B) provide that, if the relevant employer of a registered scheme or an exempted scheme or the representative employer of a group scheme fails to notify the Registrar of the relevant changes, he commits an offence and is liable to a fine of $2,000 for failure to give notice of the change of name of the scheme, and a fine of $10,000 for failure to give notice of the change of relevant employer or administrator of the scheme.