XN000022-1985-04-24 — Page 5

WED: 580. APRIL 24, 1985

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THE SECOND TASK WAS TO ENSURE THE RIGHT ORGANISATION FOR THE JOB.

+ THE INTERCONNECTION OF MARKETS BASED ON NEW FINANCIAL PRACTICE AND FOSTERED BY DEREGULATION SUGGESTS THE NEED FOR A DIFFERENT GROUPING OF THE SUPERVISORY AGENTS UNDER THE FINANCIAL SECRETARY TO ENSURE THAT WE KEEP PACE WITH EVENTS AND HAVE THE NECESSARY MINIMUM CO-ORDINATION, BUT THIS IS FOR OTHERS TO PONDER, HE SAID.

HE ADDED: +MY IMMEDIATE CONCERN IS THE ADMINISTRATIVE REFORMS REQUIRED IN MY OWN OFFICE,+

WHILE THE STRENGTH HAD BEEN THE EXAMINATION SYSTEM, THE WEAKNESS WAS IN THE NEXT STAGE AND IN FORMING COLLECTIVÉ EXPERIENCE GAINED FROM HUNDREDS OF EXAMINATIONS.

TWO STEPS HAD BEEN TAKEN TO CHANGE THIS: STAFF WOULD BE BROUGHT TOGETHER IN ONE OFFICE HOPEFULLY BY THE AUTUMN, AND BY THE SAME TIME THE FIRST COMPUTER PROGRAMMES WOULD BE RUNNING.

MR FELL DID NOT ENVISION AN INCREASE IN STAFF, BUT RATHER A +THICKENING OF THE LAYER OF SENIOR STAFF TO DEAL WITH THE NECESSARY WORK HIGHLIGHTED BY EXAMINATION OR AUDIT.+

HE SAID THESE INTERNAL CHANGES WILL BE REFLECTED IN THE RELATIONSHIP WITH OUR CLIENTS ..... WE WANT TO ENSURE THAT ANYTHING WE HAVE TO SAY GETS EFFECTIVELY INTO THE BANK'S CHAIN OF ACCOUNTABILITY.+

THE NEXT TASK WAS TO OVERHAUL THE EXISTING LEGISLATION. THERE WERE ANOMALIES IN THE EXISTING ORDINANCES, AS ONE WOULD EXPECT IN LEGISLATION WHICH HAD BEEN AMENDED MANY TIMES TO MEET PARTICULAR DIFFICULTIES,

+A NEW CONSOLIDATION ORDINANCE WOULD BE A BENEFICIAL + BUT THE BASIS OF OUR EXERCISE IN ITSELF, SAID MR FELL. THINKING WOULD BE PRIMARILY TO TREAT THE INDUSTRY IN THE ROUND, AS AN ENTITY, IN THE LIGHT OF THE CONSIDERABLE EXPERIENCE OVER THE LAST FEW YEARS.+

HE SAID THERE HAD BEEN SOME DEBATE THAT WIDER POWERS WERE NECESSARY, BUT ADDED: +1 AM NOT SURE THAT THIS IS AT ALL THE CASE. MY PERSONAL AIM WOULD BE TO TAKE SOMETHING LIKE THE CENTRAL POWERS OF THE BANKING ORDINANCE AND APPLY THEM TO THE INDUSTRY AS A WHOLE.+

ON APPEAL HE SAID, THE GOVERNOR-IN-COUNCIL COULD CHANGE THE DECISION OF THE COMMISSIONER. THE GOVERNOR-IN-COUNCIL

AND THE COULD ALSO MAKE ANY OTHER ORDER AS THOUGHT FIT. GOVERNOR-IN-COUNCIL HAD THE ULTIMATE SANCTION OF BEING ABLE TO REVOKE A LICENCE.

/+I THINK