XN000022-1991-05-01 — Page 7

6

WEDNESDAY, MAY 1, 1991

NOTED

WERE

EXPRESSED

PUBLIC THE DURING HE

THAT VIEWS

UP CONSULTATION EXERCISE THAT AN ACROSS-THE-BOARD REQUIREMENT TO SET

SETTING UP CONSULTATIVE COMMITTEES COULD DISCOURAGE EMPLOYERS FROM RETIREMENT SCHEMES.

**WHILST WE RECOGNISE THAT CONSULTATIVE COMMITTEES CAN PROVIDE A REGULATORY USEFUL FORUM FOR THE EXCHANGE OF VIEWS, WE AGREE THAT THE REQUIREMENT SHOULD NOT BE SO ONEROUS AS TO INHIBIT THE SETTING UP RETIREMENT SCHEMES, AND WE THEREFORE, MODIFIED THE PROVISION.

OF

"IN ADDITION TO SERVING AS A FORUM FOR THE EXCHANGE OF VIEWS, INFORMATION CONSULTATIVE COMMITTEES ARE ENTITLED TO RECEIVE CERTAIN

ARE SET WHERE NO COMMITTEES ABOUT THE RELEVANT RETIREMENT SCHEMES.

INFORMATION,' MR UP, INDIVIDUAL SCHEME MEMBERS MAY REQUEST FOR THE MACLEOD SAID.

THEAT NOTING

11

ON THE TAX WAS

STATUS SILENT THE BILL

PROVIDED ORDINANCE HE CONTRIBUTIONS,

SAID THE INLAND REVENUE CONTRIBUTIONS BY AN EMPLOYER TOWARDS A RETIREMENT SCHEME APPROVED THE COMMISSIONER OF INLAND REVENUE WAS TAX DEDUCTIBLE.

OF

THAT

BY:

OF "IN FUTURE, A SCHEME MUST BE REGISTERED WITH THE REGISTRAR

BUT ONLY OCCUPATIONAL RETIREMENT SCHEMES TO QUALIFY FOR TAX RELIEF, ONE APPLICATION WILL NEED TO BE LODGED WITH THE REGISTRAR.

"NO SEPARATE APPLICATION TO THE COMMISSIONER FOR INLAND REVENUE WILL BE REQUIRED, HE SAID.

H

THE BILL, WHEN

ENACTED,

WOULD HAVE WIDE MR

SAID MACLEOD

FOR IMPLICATIONS FOR EMPLOYERS WHO WERE OPERATING RETIREMENT SCHEMES

THEIR EMPLOYEES.

.

SCHEMES COMPLY FUNDING,

HE SAID THEY WOULD HAVE TO ENSURE THAT THEIR THE NEW REQUIREMENTS ON TRUSTEESHIP, ASSET INVESTMENT, ACCOUNTING, AUDITING, INFORMATION DISCLOSURE AND SO ON.

WITH

"A TRANSITIONAL PERIOD OF TWO YEARS WILL BE PROVIDED SCHEMES TO BECOME REGISTERED.

"ON EXPIRY OF THE TWO-YEAR PERIOD, OPERATE AN UNREGISTERED RETIREMENT SCHEME,

FOR THE

"I

IT WILL BE AN OFFENCE HE ADDED.

TO

BILL WAS

THE ACTING FINANCIAL SECRETARY SAID WHEN THE WHITE ISSUED FOR PUBLIC CONSULTATION LAST SUMMER, ONE MAJOR CRITICISM OF THE BILL WAS ITS COMPLEXITY.

"IT IS TRUE THAT THE BILL IS A TECHNICAL AND COMPLICATED OF LEGISLATION, BECAUSE THE SUBJECT OF RETIREMENT SCHEMES IS FAR SIMPLE.

"WE HAVE MADE A POLICY DECISION THAT THE BILL SHOULD COVER CONTRIBUTIONS SCHEMES OPERATING IN HONG KONG AND TOWARDS WHICH MADE IN HONG KONG, REGARDLESS OF THEIR DOMICILE," HE EXPLAINED.

PIECE

FROM

HAD THE SCOPE BEEN LIMITED TO SCHEMES WHICH WERE DOMICILED HƯNG HONG, HE SAID THE BILL AND THE SPEECH WOULD BE MUCH SHORTER.

ALL

ARE

IN'

/"HOWEVER, AS