XN000022-1988-06-08 — Page 12

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WEDNESDAY, JUNE 8, 1988

FOR SECURITIES

"IN PRACTICE, THE COMMISSIONER

WILL PERFORM THIS DUTY BY SEEKING AND OBTAINING AN ASSURANCE FROM THE OVERSEAS REGULATORY AUTHORITY THAT IT WILL PROTECT THE INFORMATION TO BE DISCLOSED TO IT.

"IN THE EVENT OF A BREACH OF THIS UNDERTAKING, THE COMMISSIONER WILL WITHHOLD THEIR CO-OPERATION IN FUTURE.

נו

SAID

ON THE INSURANCE COMPANIES (AMENDMENT) BILL, MR NENDICK THAT AS IN THE CASE OF THE COMMISSIONER OF BANKING AND COMMISSIONER FOR SECURITIES, THE INSURANCE AUTHORITY WOULD BE UNDER A STATUTORY DUTY TO SATISFY HIMSELF AS TO THE ADEQUACY OF SECRECY PROVISIONS IN THE OVERSEAS JURISDICTION BEFORE HE MIGHT RELEASE INFORMATION ΤΟ THE OVERSEAS REGULATORY AUTHORITY IN QUESTION.

IN PRACTICE, THE INSURANCE AUTHORITY WOULD PERFORM THIS DUTY IN THE SAME MANNER AS THE COMMISSIONER FOR SECURITIES.

MR NENDICK SAID THAT HE COULD CONFIRM THAT IN ADDITION то ENSURING THAT INFORMATION PROVIDED TO OVERSEAS SUPERVISORS WAS ADEQUATELY SAFEGUARDED, THE INSURANCE AUTHORITY WOULD HAVE CAREFUL REGARD TO THE INTERESTS OF THE LOCAL INSURANCE INDUSTRY DETERMINING HOW HE EXERCISED HIS POWERS TO DISCLOSE INFORMATION.

IN

BILLS TO IMPROVE HK'S PRUDENTIAL CONTROL SUPPORTED

THE

SECURITIES (AMENDMENT} BILL 1988 AND THE INSURANCE COMPANIES (AMENDMENT) BILL, WHICH SEEK TO INTRODUCE CHANGES TO THE PRINCIPAL ORDINANCES MAINLY IN THE PROVISIONS REGARDING OFFICIAL SECRECY AND DISCLOSURE OF INFORMATION TO OVERSEAS REGULATORY AUTHORITIES, WOULD IMPROVE HONG KONG'S PRUDENTIAL CONTROL, THE HON MARIA TAM SAID TODAY (WEDNESDAY).

MISS TAM WAS SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE RESUMED DEBATE ON THE TWO BILLS.

SHE NOTED THAT IT WAS AN INCREASING TREND FOR REGULATORY AUTHORITIES OF DIFFERENT COUNTRIES TO CO-OPERATE WITH ONE ANOTHER SHARE OUT INFORMATION TO THEIR MUTUAL BENEFIT.

AND

IN THE UNITED KINGDOM, THE FINANCIAL SERVICES ACT 1986 PROVIDED FOR THE EXCHANGE OF INFORMATION AMONG REGULATORY AUTHORITIES WITHIN AND OUTSIDE OF THE UNITED KINGDOM. SIMILAR LEGISLATION ALSO EXISTED IN THE UNITED STATES AND AUSTRALIA.

"AT PRESENT,