TNAG-1729-FCO40-2442-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 287

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clause 6 inserts new provisions on secrecy, disclosure of

information and examination by outside authorities. These

new provisions create a general prohibition against the

disclosure of information obtained under the Ordinance

and, notwithstanding that prohibition, specify in what

circumstances and to whom such information may be

disclosed. This will enable the Insurance Authority to

exchange information on authorised insurers with

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regulatory bodies in Hong Kong and insurance supervisory

authorities overseas in the interests of policy holders or

potential policy holders. Again, in doing so, it will

bring the Ordinance into line with the relevant provisions

of the Banking Ordinance.

بو

Sir,

Any company wishing to carry on any class of ᄉ

insurance business must first seek and obtain

authorisation from the Insurance Authority. Section 8 of

the Ordinance enables the Authority to impose conditions,

as necessary, for the better regulation of the insurer and

the protection of policy holders. Section 12 provides

that any such conditions will automatically cease to have

effect five years after the date of authorisation.

However, the Authority does need to impose conditions

which are of a continuing nature for the protection of

policy holders. Clause 3 amends section 12 to give the

Authority a discretion to determine when conditions

imposed under authorisation should be revoked. This will

allow a distinction to be drawn between conditions imposed

for an initial period and those intended to be of a

continuing nature.