XN000022-1987-07-01 — Page 28

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WEDNESDAY, JULY 1, 1987

"DEPOSIT"

OF DEFINITION IT WAS PROPOSED, THEREFORE, THAT THE WOULD EXCLUDE THE ISSUE OF SUCH SECURITIES BY AUTHORISED INSTITUTIONS. THIS WOULD IN EFFECT TREAT AUTHORISED INSTITUTIONS IN THE SAME WAY AS

REVERT TO OTHER COMPANIES AND

UNDER POSITION

DEPOSIT-TAKING COMPANIES ORDINANCE.

THE

THE PREVIOUS

DEPOSIT-TAKING

THE NEXT AMENDMENT CONCERNS THE TRANSFER OF LICENCES. MR NENDICK POINTED OUT THAT RECENTLY DEPOSIT-TAKING COMPANY WHICH HAD BEEN OPERATING IN HONG

WAS LONG TIME BUT

INCORPORATED IN THE CAYMAN ISLANDS TRANSFER ITS LICENCE TO ITS U.K. PARENT BANK.

A LICENSED KONG FOR A SOUGHT TO

"THIS TRANSFER WOULD HAVE BEEN WELCOMED FROM A SUPERVISORY POINT OF VIEW BUT COULD NOT BE CARRIED OUT AS THE PROPOSED TRANSFEREE WAS NOT A REGISTERED DEPOSIT-TAKING COMPANY, HE ADDED.

**

TO ALLOW FOR SUCH TRANSFERS, IT WAS PROPOSED APPLICATION FOR THE TRANSFER OF A DEPOSIT-TAKING LICENCE MAY MADE BY A PERSON OTHER THAN A REGISTERED-TAKING COMPANY.

WOULD

"ANY SUCH TRANSFER WOULD STILL BE SUBJECT TO THE THE FINANCIAL SECRETARY, AND ALL OTHER PROVISIONS APPLY," HE STRESSED.

THE ACTING

THAT

ALSO BE

AN

APPROVAL CONTINUE

OF

ΤΟ

AND

FINANCIAL SECRETARY WENT ON TO EXPLAIN THREE PROPOSED AMENDMENTS CONCERNING THE SALE OR DISPOSAL OF BUSINESS RECONSTRUCTION OF CAPITAL.

FIRST, IN THE CASE OF REGISTERED DEPOSIT-TAKING COMPANIES, THE HE PRIOR APPROVAL OF THE COMMISSIONER OF BANKING WOULD SUFFICE SINCE IS THE REGISTRATION AUTHORITY FOR THESE INSTITUTIONS.

SECOND, TO CLARIFY THE AMBIT OF THIS SUBSECTION, ONLY THE SALE OR DISPOSAL OF AN INSTITUTION'S BANKING OR DEPOSIT-TAKING BUSINESS, FOR WHICH DEFINITIONS ARE PROVIDED IN THE ORDINANCE, WOULD REQUIRE PRIOR APPROVAL; THE SALE OR DISPOSAL OF OTHER THAN THIS CORE BUSINESS WOULD ONLY NEED TO BE ADVISED TO THE COMMISSIONER.

THIRD, ONLY CAPITAL REDUCTIONS WOULD REQUIRE PRIOR APPROVAL;

ADVISED OTHER CAPITAL RECONSTRUCTIONS WOULD ONLY NEED TO BE

TO THE

COMMISSIONER.

MR NENDICK NOTED THAT THE AMENDMENTS AIMED ΤΟ REDUCE UNNECESSARY PROCEDURES IN ADMINISTERING THE ORDINANCE.

ANOTHER AMENDMENT REFERRED TO THE PROVISIONS IN THE BANKING ORDINANCE WHICH RESTRICTED THE GRANTING OF UNSECURED ADVANCES OR OTHER FACILITIES BY AN UNAUTHORISED INSTITUTION TO ANY NON-LISTED COMPANY IN WHICH ANY DIRECTOR OF THE AUTHORISED INSTITUTION A DIRECTOR.

WAS ALSO

/MR NENDICK