XN000022-1985-07-24 — Page 20

HONGSDAY, JILT

+ACCORDINGLY, I SHALL MOVE AMENDMENTS TO ACHIEVE THAT PURPOSE IN THE COMMITTEE STAGE, HE SAID.

SIR ROGER ADDED THAT ALTHOUGH THERE WERE SEVERAL AMENDMENTS NEEDED. THE EFFECT OF THE REVISED BILL CONTINUED TO BE THE TRANSFER OF THE EXISTING ROYAL BANK OF SCOTLAND'S HONG KONG BUSINESS TO

A NEW BANK AS PART OF THE WORLDWIDE MERGER OF THE BANK ING BUSINESSES OF WILLIAMS AND GLYN'S BANK AND THE ROYAL BANK OF SCOTLAND.

MEASURE TO PROTECT SMALL DEPOSITOR

*****

THE EFFECTIVENESS OF A REQUIREMENT DESIGNED TO PROTECT THE SMALL DEPOSITOR BY DEBARRING HIM FROM DEPOSITING WITH A REGISTERED DEPOSIT-TAKING COMPANY HAD CLEARLY BEEN ERODED BY THE PASSAGE OF

TIME.

AN INCREASE IN THE AMOUNT OF THE MINIMUM DEPOSIT FROM $50 000 TO $100 000 WAS NEEDED, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE DEPOSIT-TAKING COMPANIES (AMENDMENT) BILL 1985, MR JACOBS SAID THE MINIMUM DEPOSIT REQUIREMENT WHICH APPLIED TO REGISTERED DTCS WAS FIRST INTRODUCED IN 1976.

HE POINTED OUT THAT EARLIER THIS YEAR, SIR JOHN BREMRIDGE HAD ANNOUNCED THE INTENTION TO REVISE SUCH MINIMUM DEPOSIT REQUIREMENT AND THERE HAD BEEN NO DISCERNIBLE PUBLIC REACTION SINCE.

+NOR HAS ANY REPRESENTATION BEEN RECEIVED FROM REGISTERED DEPOSIT-TAKING COMPANIES, HE SAID.

IF THE BILL PASSES INTO LAW, THE NEW LIMIT OF $100 000 WILL TAKE EFFECT ON MARCH 1, 1986.

MR JACOBS ADDED THAT IT WAS PROVIDED IN THE BILL THAT DEPOSITS TAKEN BEFORE BUT MATURING AFTER THE EFFECTIVE DATE OF ANY NEW LIMIT COULD RUN TO MATURITY.

HE SAID THE SECOND PURPOSE OF THE BILL WAS TO REMOVE A TECHNICAL ANOMALY ARISING FROM SECTION 27 OF THE ORDINANCE WHICH PROHIBITED THE ISSUE OF AN ADVERTISEMENT OR INVITATION SOLICITING THE DEPOSIT OF MONEYS.

DEBATE ON THE BILL WAS ADJOURNED.

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