XN000022-1995-10-23 — Page 44

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In late 1994, the HKMA and the SFC established a Working Party to look into ways to minimise gaps and overlaps in their supervision. The main recommendations of the Working Party are enshrined in the MOU. Subject to the condition that the respective statutory functions of the two parties are preserved, the MOU provides in broad terms for: the appointment of a co-ordinator for each institution or financial group in which both authorities have an interest for the purpose of establishing regular exchange of prudential information relevant to an institution's financial position, the fitness and properness of its management and other supervisory matters; and consultation in areas of staff training, issuance of guidelines, and formulation of policy in areas covering securities, futures, fund management and leveraged foreign exchange trading as they affect authorised institutions.

The HKMA and the SFC have agreed to meet every six months to exchange information on financial institutions under dual supervision. In addition, both parties will meet every two months to discuss current and general policy issues. Ad-hoc meetings will be arranged to deal with specific supervisory concerns. In particular, each party has agreed to inform the other prior to taking any disciplinary or regulatory action in relation to an institution where there is a common interest.

End/Monday, October 23, 1995

HK welcomes Norway's proposal on textile products

Hong Kong welcomes the proposal made by the Norwegian Government to remove certain products from the coverage of the three categories of textile items currently subject to quantitative restraint on exports to Norway, a spokesman for the Trade Department said today (Monday).

Under the proposal recently put forward to the department by the Norwegian Government, exports of impregnated jackets, impregnated trousers both under Harmonised System Heading No. 6210, and knitted bed-linen from Hong Kong to Norway will no longer be subject to quantitative restraint as from January 1, 1996.

Currently, the spokesman said, exports of all types of woven jackets and woven trousers including impregnated ones under Harmonised System Heading No. 6210, and both woven and knitted bed-linen were subject to annual quantitative limits.