XN000022-1987-06-26 — Page 4

FRIDAY, JUNE 26, 1987

3

BILL TO STREAMLINE BANKING LAW OPERATION GAZETTED

* * * * *

A BILL SEEKING TO AMEND A NUMBER OF PROVISIONS IN THE BANKING ORDINANCE 1986 TO STREAMLINE THEIR WORKING, CLARIFY THEIR MEANING OR REMOVE DOUBTS ON INTERPRETATION WAS GAZETTED TODAY (FRIDAY).

A GOVERNMENT SPOKESMAN SAID THAT IN SOME CASES, THE OPPORTUNITY WAS ALSO TAKEN TO CORRECT MINOR DRAFTING ERRORS IN

THE PRINCIPAL ORDINANCE ENACTED LAST YEAR.

EXPLAINING THE MAIN LEGISLATIVE CHANGES CONTAINED IN THE BANKING (AMENDMENT) BILL 1987, HE SAID IT WAS PROPOSED TO AMEND THE DEFINITION OF DEPOSITS TO EXEMPT FROM THE SCOPE OF THE ORDINANCE AUTHORISED INSTITUTIONS' ISSUES OF DEBENTURES OR OTHER SECURITIES IN RESPECT OF WHICH A PROSPECTUS HAS BEEN REGISTERED UNDER THE COMFANIES ORDINANCE.

"THIS WILL IN EFFECT TREAT AUTHORISED INSTITUTIONS IN THE SAME WAY AS OTHER COMPANIES AND REVERT BACK ΤΟ THE POSITION UNDER THE PREVIOUS DEPOSIT-TAKING COMPANIES ORDINANCE," HE SAID.

ACCORDING TO THE SPOKESMAN, THE AMENDMENT WOULD REMOVE AN UNINTENDED IMPEDIMENT IN SOME REGISTERED DEPOSIT-TAKING COMPANIES' ACCESS TO INTERNATIONAL CAPITAL MARKETS WHERE BONDS WERE OFTEN ISSUED AT SMALL DENOMINATIONS TO ENSURE MARKETABILITY.

"IT IS ALSO PROPOSED TO AMEND THE PROVISION FOR TRANSFER OF DEPOSIT-TAKING LICENCES. AT PRESENT A DEPOSIT-TAKING LICENCE CAN

BE TRANSFERRED

SUBJECT ΤΟ CERTAIN CONDITIONS REGISTERED DEPOSIT-TAKING COMPANY.

ONLY

-

TO A

"THERE MAY HOWEVER BE CIRCUMSTANCES UNDER WHICH THE TRANSFER OF A LICENCE TO A COMPANY OTHER THAN A REGISTERED DEPOSIT-TAKING COMPANY WOULD BE DESIRABLE FROM THE SUPERVISORY POINT OF VIEW. CLAUSE 11 OF THE BILL WILL ALLOW FOR THIS, SUBJECT TO THE FINANCIAL SECRETARY'S APPROVAL," HE ADDED.

"CLAUSE 14 CONTAINS THREE AMENDMENTS TO SECTION 69(1) OF THE ORDINANCE ON THE SALE OR DISPOSAL OF BUSINESS AND RECONSTRUCTION OF CAPITAL.

"FIRST, IN THE CASE OF REGISTERED DEPOSIT-TAKING COMPANIES, PRIOR APPROVAL FROM THE COMMISSIONER OF BANKING (INSTEAD OF THE FINANCIAL SECRETARY AS AT PRESENT} WILL BE SUFFICIENT. THE COMMISSIONER IS THE REGISTRATION AUTHORITY FOR THESE INSTITUTIONS.

"SECOND, TO CLARIFY THE AMBIT OF THIS SUBSECTION, ONLY THE SALE OR DISPOSAL OF THE INSTITUTION'S BANKING BUSINESS OR DEPOSIT-TAKING BUSINESS WILL REQUIRE PRIOR APPROVAL; THE SALE OR

WILL ONLY NEED ΤΟ

BE

DISPOSAL OF OTHER THAN THESE CORE BUSINESSES ADVISED TO THE COMMISSIONER.

WIRD, ONLY