A206
Ord. No. 27/86
BANKING
BANKING
Ord. No. 27/86
A207
Investigations on
behalf of the
Financial
Secretary.
PART XX
INVESTIGATIONS OF AUTHORIZED INSTITUTIONS
117. (1) If it appears to the Commissioner that it is in the interests of depositors of an authorized institution or a former authorized institution or in the public interest that an inquiry should be made into the affairs of that institution he may make a report to that effect to the Financial Secretary.
(2) The Financial Secretary, on receipt of a report under subsection (1), may appoint a competent person to investigate and report--
(a) to him; and
(b) in the case of an authorized institution which is or has been a registered
deposit-taking company, to the Commissioner,
on the state and conduct of the business of the authorized institution concerned, or any particular aspect of that business specified by him.
(3) The Financial Secretary may, from time to time after making an appoint- ment under subsection (2), and before the person so appointed reports to him, require that person to inquire into any further aspect of the authorized institution concerned.
(4) The person appointed under subsection (2) shall be paid such remuneration and allowances and be appointed on such terms as the Financial Secretary shall from time to time determine.
(5) On receipt of the report of the person appointed under subsection (2) the Financial Secretary may, without limiting the generality of the exercise by him of any other powers which he may exercise under this Ordinance—
(a) if he is of the opinion that it is in the public interest to do so, cause the whole or any part of a report under this section to be published in such manner as he thinks fit:
Provided that nothing in a report published under this paragraph shall enable any particular customer of an authorized institution to be identified or reveal details of the affairs of any such customer without the consent of that customer;
(b) require the person appointed under subsection (2) to report further on any
matters arising from the report;
(c) refer the report to the Governor in Council with the recommendation that the Governor in Council should exercise one or more of his powers under, in the case of an authorized institution which is a bank, sections 29 and 53 or, in the case of an authorized institution which is a deposit-taking company, section 53;
(d) if it appears that an offence may have been committed by any person, refer
the report to the Attorney General;
(e) in the case of an authorized institution which is a registered deposit-taking company, refer the report to the Commissioner with the recommendation that the Commissioner should exercise one or more of his powers under section 31 and Part VI;
(f) apply to the High Court for a winding-up order under section 122(5).
(6) The Financial Secretary shall not exercise his powers under subsection (2) in the case of a former authorized institution which ceased to be an authorized institution 12 months or more before the date of the report under subsection (1).
(7) Any person who-
(a) with intent to defeat the purposes of this section or to delay or obstruct the
carrying out of an investigation under this section-
(i) conceals, destroys, mutilates or alters a document relating to a matter which is the subject of an investigation by a person appointed under subsection (2); or
(ii) sends, or causes to be sent, or conspires with another person to send, out of Hong Kong any such document; or
(b) knowingly furnishes to a person appointed under subsection (2) any
information which is false or misleading in a material particular,
commits an offence and is liable on conviction upon indictment or on summary conviction to a fine of $20,000 and to imprisonment for 2 years.
118. (1) Subject to this section, the inspector may determine the manner in Powers of the which an inquiry under section 117 is to proceed.
(2) If the inspector thinks it necessary for the purposes of his investigation, he may also investigate the business of any company which is or has at any relevant time been-
(a) a holding company or subsidiary of the body whose business is under
investigation;
(b) a subsidiary of a holding company of that body; or
(c) a holding company of a subsidiary of that body.
(3) It shall be the duty of every director, manager, employee, or agent of a company whose business is under investigation (whether by virtue of section 117(2) or subsection (2)) and any person who has in his possession books, papers or infor- mation relevant to the investigation-
(a) to produce to the inspector all books and papers relating to the company
concerned which are in his custody or power;
(b) to attend before the inspector when required to do so; and
(c) to answer truthfully and to the best of his ability any questions which may
be put to him by the inspector and which are relevant to the investigation: Provided that an inspector shall not require the disclosure by a solicitor or counsel of any privileged communication, whether oral or written, made to or by him in that capacity.
(4) Anything said by any person in answer to a question put by the inspector under subsection (3)(c) shall be inadmissible in any criminal proceedings other than criminal proceedings brought under this section.
(5) Any director, manager, employee or agent of a company and any other person who-
(a) without reasonable excuse fails to produce any books or papers which it is
his duty to produce under subsection (3); or
(b) without reasonable excuse fails to attend before the inspector when required
to do so under this section; or
(c) fails to answer to the best of his ability any question which is put to him by an inspector with respect to a business which is under investigation under section 117 or to the business of any body corporate which is being investigated by virtue of subsection (2),
commits an offence and is liable on conviction upon indictment or on summary conviction to a fine of $20,000 and to imprisonment for 6 months.
(6) In this section--
(a) "inspector" means a person appointed under section 117(2);
inspector and offences in
connexion with the investigation.
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