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not always within the Commissioner's control: he may have to await information from others, including in some
Instead of a cases overseas supervisory authorities.
specified time limit, therefore, I will be moving amendments to clauses 70(1), 70(4), 72(1), 72(2) and 72(3), to the effect that the Commissioner shall convey his decisions as soon as practicable.
Clauses 70, 71: Substantial shareholders
12.
The control of ownership in locally incorporated institutions is an essential proposal of the Bill. This is embodied in clauses 70 and 71.
13.
As Mr Swaine has explained, there are likely to be practical difficulties in implementing clause 71; it will therefore be deleted. This means that the only sanction against substantial shareholders voting without the Commissioner's approval (as required under clause 70) will be the penalty under clause 70(6). It is considered therefore that that penalty should be raised. I will be moving an amendment to raise it to $500,000 and 5 years imprisonment. This will bring it to the same level as that for carrying on banking business or deposit-taking business illegally in clauses 11(2) and 12(6).
14.
At the same time, to avoid disrupting the business of the institution, it needs to be made clear that nothing done in contravention of clause 70(1) shall be invalid by reason only of that contravention. be moving an amendment to that effect.
Clause 72: Appointment of directors
15.
I will
Clause 72 requires appointment of directors of locally incorporated institutions to be subject to the Commissioner's prior approval. Since it is customary is
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