ENG-1982 — Page 64

INDUSTRY AND TRADE

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registered from 56 countries, including 393 from the United States, 232 from Britain and 187 from Japan.

The Companies Registry also deals with the incorporation of trustees under the Registered Trustees Incorporation Ordinance, and with the registration of limited partnerships.

Insurance Registry

All insurance companies wishing to transact life, fire or marine insurance business in Hong Kong must comply with the provisions of either the Life Insurance Companies Ordinance or the Fire and Marine Insurance Companies Deposit Ordinance. In addition to the filing of annual accounts, these ordinances require deposits to be made with the Registrar of Companies, unless the company is exempt. This exemption depends on obtaining a certificate from the Insurance Division of the Department of Trade in London, stating that the company is authorised under the Insurance Companies Act 1974 to carry on insurance business in Britain, or – in the case of fire and marine insurance – is maintaining similar deposits elsewhere in the Commonwealth. Under the Life Insurance Companies (Amendment) Ordinance, 1981, and the Fire and Marine Insurance Companies Deposit (Amendment) Ordinance, 1981, which came into effect on January 9, 1981, companies trans- acting life, fire or marine insurance business and to which no exemption has been given are required to have a minimum paid-up capital of $5 million and a solvency margin of $2 million (or $4 million when the company carries on both life and fire or marine insurance business). The approval of the Registrar General must be obtained for transacting motor vehicle third party risks insurance business. There are 306 insurance companies including 135 local companies, transacting life, fire, marine or motor vehicle insurance business in Hong Kong. All insurance companies also have to comply with the provisions of the Insurance Companies (Capital Requirements) Ordinance 1978. This ordinance, subject to certain exceptions, restricts the commencement of life, fire, marine or motor vehicle insurance business to companies formed or registered under the Companies Ordinance which have an issued capital of not less than $5 million fully paid up in cash.

A new, comprehensive Insurance Companies Bill which covers all classes of insurance business was published in the Government Gazette on May 7, 1982. The bill is expected to be enacted in 1983.

Money Lenders

The present system of registration of money lenders is based on the Money Lenders Ordinance which came into force on December 12, 1980. Anyone wishing to carry on business as a money lender must now apply to a Licensing Court consisting of a magistrate and two lay assessors. In the first instance, the application is submitted to the Registrar General as Registrar of Money Lenders and a copy is sent at the same time to the Commissioner of Police, who may object to the application. The application is advertised, and any member of the public who has an interest in the matter also has the right to object to the application.

The ordinance provides severe penalties for a number of statutory offences such as carrying on an unlicensed money lending business. It also provides that any loan made by an unlicensed money lender shall not be recoverable by court action. Any person, whether a licensed money lender or not, who lends or offers to lend money at an interest rate exceeding 60 per cent per annum, commits an offence and agreement for the repayment of any such loan or any security given in respect of such loan shall be unenforceable. At the end of the year there were 572 licensed money lenders.