XN000022-1995-07-19 — Page 81

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Insurance Companies (Amendment) Bill: committee stage

Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, at the committee stage of the Insurance Companies (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that clauses 2 and 7 be amended as set out in the paper circulated to Members.

Proposed section 4A(2)(e) is amended, through clause 2(b), to clarify that it is the Administration's intention to promote and develop self-regulation by market and professional bodies of the insurance industry only. Professional bodies which practice in but are not of the insurance industry will not be covered.

Proposed section 4A(3) is amended, through clause 2(c), to delete subsection 4A(3)(b). This is intended to address concerns expressed by the insurance industry and professional bodies that proposed subsection 4A(3)(b) may enable the Insurance Authority to interfere, by means of guidelines, in the internal operations of an insurer or insurance intermediary or in the professional practices of their auditors or actuaries.

Proposed section 53A(3)(f) is amended, through clause 7(c), to enable the Insurance Authority to disclose information to an actuary or auditor of an insurance broker or body of insurance brokers, if such information is necessary for them to carry out their duties under the Insurance Companies Ordinance.

Mr Chairman, I beg to move.

End/Wednesday, July 19, 1995