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(c) if the Commissioner requires any return submitted to him pursuant to paragraph (a), or any information submitted to him pursuant to a require- ment under paragraph (b), to be accompanied by a certificate of an auditor, the institution shall submit a certificate of the auditor appointed under section 59(1) or of the auditors appointed under section 59(1) and (2), as the case may be, as to whether or not, in the opinion of the auditor or auditors, the return or information is correctly compiled from the books and records of the overseas branch;
(d) if the Commissioner wishes to examine the books, accounts and transac- tions of the overseas branch, the institution shall for that purpose afford the person carrying out the examination at the place where the branch is maintained access to the books and accounts of the branch, to documents of title to the assets and other documents and to all securities held by the branch in respect of its customers' transactions and its cash and to such information and facilities as may be required to conduct the examination, and that the institution shall produce to the person carrying out the examination such books, accounts, documents, securities, cash or other information as he may require:
Provided that, so far as is consistent with the conduct of the examina- tion, such books, accounts, documents, securities and cash shall not be required to be produced at such times and such places as shall interfere with the proper conduct of the normal daily business of the overseas branch. (2) Every authorized institution incorporated in Hong Kong which maintains an overseas representative office thereof shall be subject to a condition that-
(a) the institution shall submit to the Commissioner such information as he may require regarding the functions and activities of the overseas represen- tative office;
(b) if the Commissioner wishes to examine the functions and activities of the overseas representative office, the institution shall for that purpose afford the person carrying out the examination at the place where the representa- tive office is maintained access to the documents maintained by the representative office and to such information and facilities as may be required to conduct the examination, and that the institution shall produce to the person carrying out the examination such documents or other information as he may require.
(3) This section applies to every authorized institution incorporated in Hong Kong whether the institution was licensed or registered before, on or after the commencement of this Ordinance.
(4) Every director and every manager of an authorized institution which contravenes any condition in subsection (1) or (2), or fails to comply with any requirement under those subsections, commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment
for 12 months; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months,
and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
(5) If an authorized institution produces any book, account, document, security or information whatsoever under this section which is false in a material particular, every director and every manager of the institution commits an offence and is liable- (a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 2 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
(6) Any person who signs any document for the purposes of this section which he knows or reasonably ought to know to be false in a material particular commits an offence and is liable--
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
years; or
for
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
and overseas
51. (1) Whenever the establishment by an authorized institution incorporated Fees in respect of in Hong Kong of an overseas branch or overseas representative office is approved overseas branches under section 49(1), the institution shall pay to the Director of Accounting Services representative the fee specified in the Second Schedule in relation to that branch or representative offices. office and thereafter, so long as the branch or representative office continues to be Second Schedule. maintained by the institution, it shall pay to the Director of Accounting Services the fee specified in the Second Schedule on the anniversary in each year of the date on which the institution was licensed or registered, as the case may be.
(2) An authorized institution incorporated in Hong Kong that is maintaining, at the commencement of this Ordinance, an overseas branch or overseas representa- tive office to which section 49(3) applies shall, so long as the branch or representative office continues to be maintained by the institution, pay to the Director of Accounting Services the fee specified in the Second Schedule on the anniversary in each year of the date on which the institution was licensed or regstered, as the case may be.
PART X
POWERS OF CONTROL OVER AUTHORIZED INSTITUTIONS
52. (1) Where--
(a) an authorized institution informs the Commissioner-
(i) that it is likely to become unable to meet its obligations; or (ii) that it is insolvent or about to suspend payment;
(b) an authorized institution becomes unable to meet its obligations or suspends
payment;
(c) after an examination or investigation is made under section 55, the Commis-
sioner is of the opinion that an authorized institution—
(i) is carrying on its business in a manner detrimental to the interests of its depositors or of its creditors;
(ii) is insolvent or is likely to become unable to meet its obligations or is about to suspend payment;
(iii) has contravened or failed to comply with any of the provisions of this Ordinance; or
(iv) has contravened or failed to comply with any condition attached to its licence or registration, the condition specified in section 49(1), the condition specified in section 50(1) or the condition specified in sec- tion 50(2); or
(d) the Financial Secretary advises the Commissioner that he considers it in the
public interest to do so,
the Commissioner, after consultation with the Financial Secretary, may exercise such one or more of the following powers as may from time to time appear to him to be necessary-
(A) to require the institution forthwith to take any action or to do any act or
thing whatsoever in relation to its business as he may consider necessary; (B) to appoint a person to advise the institution in the proper conduct of its
business;
Powers of Commissioner.
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