XN000022-1989-05-04 — Page 2

THURSDAY, MAY 4, 1989

EXCO APPROVES REGULATION OF RETIREMENT SCHEMES

* *

A REVISED FRAMEWORK FOR REGULATING PRIVATE RETIREMENT SCHEMES HAS BEEN APPROVED BY THE EXECUTIVE COUNCIL, A GOVERNMENT SPOKESMAN SAID TODAY (THURSDAY).

THIS FOLLOWED THE PUBLICATION OF A CONSULTATIVE DOCUMENT IN BY JUNE 1988 SETTING OUT PROPOSALS FOR A FRAMEWORK OF SELF-REGULATION

TRUSTEES, AUDITORS EMPLOYERS, SCHEME MEMBERS,

AND ACTUARIES WHICH WOULD ALLOW SCHEME BENEFICIARIES TO PROTECT THEIR OWN INTERESTS.

IS

"THE ULTIMATE AIM

ΤΟ ENSURE THAT THE BENEFITS CAN BE DELIVERED TO SCHEME MEMBERS UPON RETIREMENT," THE SPOKESMAN SAID.

FROM MORE THAN 50 SUBMISSIONS WERE RECEIVED BY THE GOVERNMENT

DISTRICT BOARDS, PROFESSIONAL, COMMERCIAL AND EMPLOYEE ASSOCIATIONS,

CONSULTATION ADVISORY COMMITTEES AND MEMBERS OF THE PUBLIC DURING THE PERIOD FROM JUNE TO OCTOBER 1988.

EXPRESSED

HE POINTED OUT THAT A WIDE VARIETY OF VIEWS HAD BEEN

FOR THE PRINCIPLE OF BUT THE SUBMISSIONS INDICATED GENERAL SUPPORT

REGISTRATION OF ALL REGULATION AND FOR THE KEY PROVISIONS INCLUDING

THE MONETARY SCHEMES WITH AN AUTHORITY TO BE AFFAIRS BRANCH, ADEQUATE FUNDING,

OF ASSETS, DISCLOSURE AND ANNUAL AUDIT.

OF SET UP AS PART

SEPARATION

REPRESENTS FRAMEWORK THE REVISED PRINCIPLES OUTLINED IN THE CONSULTATIVE DOCUMENT.

TECHNICAL OF LARGELY

BREN

NO

CHANGES

TO THE

BASIC

AMENDMENTS HAVE

MADE

HOWEVER,

TO

THE

A NUMBER ORIGINAL

PROPOSALS IN THE LIGHT OF PUBLIC COMMENTS.

ARE NOW

"LEGISLATIVE PROPOSALS BASED ON THE REVISED FRAMEWORK BEING PREPARED. SUBJECT TO THE ADVICE OF THE EXECUTIVE COUNCIL, IT HOPED TO INTRODUCE A BILL INTO THE LEGISLATIVE COUNCIL IN THE HALF OF THE YEAR," THE SPOKESMAN SAID.

IS

LATTER

MAJOR AMENDMENTS TO THE PROPOSALS ARE AS FOLLOWS:

*

BAN ON THE APPOINTMENT OF THE EMPLOYER AS SOLE TRUSTEE

IT HAS BEEN SUGGESTED THAT

RESTRICTIONS SHOULD BE PLACED BETTER PROTECTION OF

UPON THE APPOINTMENT OF TRUSTEES FOR SCHEME BENEFICIARIES.

HOWEVER,

18 THE GOVERNMENT MINIMUM QUALIFICATIONS ON THE

THERE IS NO COMPELLING NEED TO TYPE AND NUMBER OF TRUSTEES TO BE APPOINTED.

NOT IN APPOINTMENT

PLACE

OF FAVOUR

IMPOSING

OF TRUSTEES A9

ON RESTRICTIONS

THE

/MOREOVER,