XN000022-1989-03-15 — Page 27

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WEDNESDAY, MARCH 15, 1989

INSURERS GIVEN MORE TIME TO COMPLY

*

THE GOVERNMENT RECOGNISES THAT CERTAIN INSURERS MAY AT PRESENT FALL SHORT OF THE PROPOSED NEW SOLVENCY MARGIN REQUIREMENTS SPECIFIED IN CLAUSE 3 OF THE INSURANCE COMPANIES (AMENDMENT} BILL 1989.

THE ACTING FINANCIAL SECRETARY, THE HON DAVID NENDICK, THIS IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) DURING THE COMMITTEE STAGE DISCUSSION OF THE BILL.

SAID

"1T IS FOR THIS REASON THAT WE HAVE PROPOSED A GRACE PERIOD UP TO JANUARY 1, 1991 FOR EXISTING AUTHORISED INSURERS TO COMPLY, SAID.

"WE FIRMLY BELIEVE THAT THE NEW SOLVENCY REQUIREMENTS ARE MINIMUM NECESSARY FOR THE ADEQUATE PROTECTION OF POLICY HOLDERS SHOULD BE BROUGHT INTO EFFECT AS EARLY AS POSSIBLE.

OF

HE

THE

AND

MADE

HOWEVER, MR NENDICK SAID HAVING REGARD TO REPRESENTATIONS BY THE INSURANCE INDUSTRY, IT WAS THEREFORE PROPOSED THAT THE GRACE PERIOD BE EXTENDED BY THREE MONTHS TO APRIL 1, 1991.

"THIS WILL ALLOW EXISTING AUTHORISED INSURERS TWO FULL YEARS IN WHICH TO COMPLY," HE SAID.

"IN THE INTERESTS OF EXISTING AND FUTURE POLICY HOLDERS, I HOPE THAT THE AUTHORISED INSURERS WILL MAKE EVERY EFFORT TO MRET THE NEW SOLVENCY MARGIN REQUIREMENTS SOONER RATHER THAN LATER."

MR NENDICK THEREFORE MOVED THAT CLAUSE 6(B) OF THE BILL BE

AMENDED.

THE BILL WAS SUBSEQUETLY PASSED BY THE COUNCIL.

MONRY CHANGERS AMENDMENT BILL BACKED

TO

THE MONEY CHANGERS (PISCLOSURE OF RATES, CHARGES AND COMM188TONS) (AMENDMENT) BILA, 1989, WILLCH SOUGHT

BETTER REGULATE THE MONEY CHANGING TRADE, WAS SUPPORTED BY MEMBERS OF THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY),

+

SPEAKING IN THE SECOND READING DEBATE ON CANDUNG PUF - LAM NOEFD THAT THE

SOUGHT

ניין

AMENDMENTS TO THE PRINCIPAL ORDINANCE.

THE BILL, THE HON MAKE A NUMBER OF

THESE PROVIDED