XN000022-1990-03-16 — Page 3

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FRIDAY, MARCH 16, 1990

"THE MAIN PURPOSE OF THE 'FREEZE' PERIOD IS TO ALLOW TIME TO REMOVE ANY UNCERTAINTIES IN EXISTING LEGISLATION, HE SAID.

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THERE WILL BE A TWO-MONTH PUBLIC CONSULTATION PERIOD WHICH WILL END ON MAY 16.

"30,000 COPIES OF THE BILINGUAL DRAFT BILL HAVE BEEN PRINTED AND ARE NOW AVAILABLE, TOGETHER WITH THE COMMENTARY EXPLAINING ITS CONTENTS, FREE OF CHARGE FROM DISTRICT OFFICES AND THE GOVERNMENT PUBLICATIONS CENTRE, THE SPOKESMAN SAID.

It

'MEMBERS OF THE PUBLIC ARE INVITED TO SEND THEIR COMMENTS ON THE DRAFT BILL TO THE SECRETARY FOR CONSTITUTIONAL AFFAIRS, CENTRAL GOVERNMENT OFFICES, EAST WING, LOWER ALBERT ROAD, HONG KONG.

"AT THE END OF THE CONSULTATION PERIOD, A FINAL BILL WILL BB PREPARED, TAKING INTO ACCOUNT THE COMMENTS RECEIVED, FOR RESUBMISSION TO THE EXECUTIVE COUNCIL.

"WE EXPECT THE BILL ΤΟ BE INTRODUCED INTO THE COUNCIL IN JULY THIS YEAR, HE ADDED.

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LEGISLATIVE

0

AUDITORS' PROVISIONS IN BANKING LAW TO BE CHANGED

* * *

OF

RELATING

OF THE

OF

PROVISIONS AUTHORISED

A BILL WHICH SEEKS TO IMPROVE THE WORKINGS

TO AUDITORS THE BANKING ORDINANCE INSTITUTIONS WAS GAZETTED TODAY (FRIDAY).

(AMENDMENT) (NO.2)

EXPLAINING THE MAIN PURPOSE OF THE BANKING BILL 1990, A GOVERNMENT SPOKESMAN SAID THE PROVISIONS WOULD BANKS, RESTRICTED LICENCE BANKS AND DEPOSIT-TAKING COMPANIES.

ONE OF THE AMENDMENTS WOULD PUT IT BEYOND VERY RARE OCCASIONS WHEN DISCUSSES HIS CLIENT'S

OF

AN AUDITOR

WITH AFFAIRS

APPLY TO

DOUBT THAT ON THE AN AUTHORISED INSTITUTION THE COMMISSIONER OF BANKING NOT BREACH HIS WITHOUT INVOLVING THE INSTITUTION, THE AUDITOR DOES DUTY OF CONFIDENCE TO HIS CLIENT AND WOULD NOT BE LIABLE FOR DAMAGES.

MANAGEMENT FRAUD PROPOSED WAS

"AN EXAMPLE OF THOSE OCCASIONS WOULD BE WHEN IS SUSPECTED," HE SAID, POINTING OUT THAT THE AMENDMENT IN LINE WITH UNITED KINGDOM LEGISLATION.

"ANOTHER AMENDMENT REQUIRES CERTAIN NOTIFICATIONS TO TO THE COMMISSIONER, FOR INSTANCE IN RELATION TO A CHANGE OR QUALIFICATION OF AN AUDITOR'S REPORT ON AN INSTITUTION'S

ACCOUNTS.

BE GIVEN OF AUDITOR PUBLISHED

/"THE BILL