TNAG-1771-FCO40-25241-Business-and-financial-legislation-in-Hong-Kong.-Part-1-of-2-1988 — Page 308

2

Disclosure of information

relating to

authorized

institutions

(Cap. 41)

(Cap. 250) (Cap. 333)

(Cap. 335)

3.

BANKING (AMENDMENT) (NO. 2) BILL 1988

"(5A) For the purposes of subsection (5)(h), "authorized statutory office" means-

(a) the Insurance Authority under the Insurance C

panies Ordinance;

(b) the Commissioner for Commodities Trading under

the Commodities Trading Ordinance;

(c) the Commissioner for Securities under the Securities

Ordinance; or

(d) the Commissioner under the Protection of Investors

Ordinance.

(5B) The Legislative Council may, by resolution, amend subsection (5A).”.

Section 121 is amended by adding after subsection (2)—

"(2A) Subject to subsection (3) and notwithstanding section 120, the Commissioner may provide information on matters relating to the affairs of an authorized institution incorporated in Hong Kong to an authority in a place outside Hong Kong where-

(a) that authority exercises functions in that place corresponding to the functions of an authorized statutory office within the meaning of section 120(5A); and

(b) in the opinion of the Commissioner-

(i) that authority is subject to adequate secrecy provisions in that place; and

(ii) the provision of such information will enable or assist that authority to exercise those functions.".

Explanatory Memorandum

This Bill amends sections 120 and 121 of the Banking Ordinance to permit the disclosure of information obtained under the principal Ordin- ance to the holders of specified statutory offices in Hong Kong and authori- ties outside Hong Kong which exercise functions corresponding to such statutory offices.

2. Clause 2(2)(c) amends section 120(5) of the principal Ordinance to add a new paragraph (h) to empower the Commissioner of Banking to dis- close information to the holder of a statutory office in Hong Kong specified in new section 120(5A) (see clause 2(3)) where the Commissioner is of the opinion that such disclosure would "enable or assist that person to exercise the functions of that office".

3. Clause 3 amends section 121 of the principal Ordinance to add a new subsection (2A) to empower the Commissioner of Banking to provide information on matters relating to the affairs of an authorized institution incorporated in Hong Kong to an authority in a place outside Hong Kong which exercises functions corresponding to the functions of a statutory office specified in new section 120(5A). However, the provision of informa- tion to such an authority may only be made where the Commissioner is of the opinion that the authority is subject to adequate secrecy provisions and the information will enable or assist the authority to exercise its functions.

4. The Bill has no Public Service staffing or public expenditure implications.