XN000022-1987-07-01 — Page 29

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WEDNESDAY, JULY 1, 1987

MR NENDICK SAIL THAT IN CERTAIN CASES THE PROVISIONS COULD WORK AGAINST THE BEST INTERESTS OF AN INSTITUTION AND ITS SUPERVISION BY ITS OWN BOARD. IT WAS THEREFORE CONSIDERED THAT THESE PROVISIONS SHOULD BE MODIFIED, PARTICULARLY AS THE COMMISSIONER HAD OTHER POWERS TO DEAL WITH IMPRUDENT LENDING TO CONNECTED COMPANIES.

ACCORDINGLY, IT WAS PROPOSED THAT THE COMMISSIONER BE GIVEN DISCRETIONARY POWERS ΤΟ EXEMPT FACILITIES GIVEN BY SPECIFIC AUTHORISED INSITUTIONS TO SPECIFIC CONNECTED COMPANIES FROM THE LIMITS UNDER THESE SECTIONS; AND THE COMMISSIONER MIGHT ATTACH CONDITIONS TO SUCH EXEMPTIONS.

OTHER AMENDMENTS INCLUDED ONE WHICH REQUIRED EXECUTIVES OF LOCALLY INCORPORATED INSTITUTIONS, IN DIRECTORS, BE APPROVED BY THE COMMISSIONER OF BANKING WERE APPOINTED.

THAT CHIEF ADDITION ΤΟ BEFORE THEY

ANOTHER AMENDMENT AIMED TO REMOVE DOUBTS AS ΤΟ WHETHER SOME NORMAL FINANCIAL SERVICES OFFERED BY AUTHORISED INSTITUTIONS MIGHT TECHNICALLY BREACH THE GAMBLING ORDINANCE.

MR NENDICK POINTED OUT THAT THE BANKING ADVISORY COMMITTEE AND THE DEPOSIT-TAKING COMPANIES ADVISORY COMMITTEE HAD BEEN CONSULTED AND THEY FULLY SUPPORTED THE PROPOSED AMENDMENTS.

DEBATE ON THE BILL WAS ADJOURNED.

LAW AGAINST UNAUTHORISED DTCS ADEQUATE

* * * * *

THE POSSIBILITY OF SUCCESSFULLY CONDUCTING AN UNAUTHORISED DEPOSIT-TAKING BUSINESS IN HONG KONG IS REMOTE AND STRENGTHENING THE LAW IN THIS AREA UNNECESSARY, THE ACTING FINANCIAL SECRETARY, MR DAVID NENDICK, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

NENDICK FORM OF

IN REPLY TO A QUESTION BY THE HON CHUNG PUI-LAM, MR SAID ADVERTISING WAS NECESSARY IN

SUCH BUSINESS, AND ANY PUBLICITY INVOLVED WOULD BE LIKELY AND PROMPTLY BROUGHT TO THE ATTENTION OF THE COMMISSIONER OF BANKING.

REFERRING TO THE RECENT CASE IN WHICH A WRIT WAS FILED IN THE HIGH COURT AGAINST A COMPANY AUTHORISED AS A BANK IN VANUATU SEEKING THE RECOVERY OF FUNDS ALLEGEDLY DEPOSITED WITH THAT COMPANY, HE SAID INSTANCES OF THIS SORT WERE RARE.

"NO OTHER CASE HAS BEEN BROUGHT TO OUR ATTENTION WITHIN PAST FIVE YEARS," HE SAID.

THE

MR NENDICK