The Banking (Amendment) Bill 2000
The Banking (Amendment) Bill 2000 ("the Bill") will be published in the Gazette on 24 November 2000.
A Hong Kong Monetary Authority (HKMA) spokesperson said that the Bill would introduce changes to the Banking Ordinance corresponding to the new licensing regime being introduced for Securities and Futures Commission (SFC) licensees under the Securities and Futures Bill (SF Bill).
The SF Bill retains the concept of exempt status for authorised institutions (exempt AIs) in relation to their activities that are regulated under the SF Bill (regulated activities). "The HKMA will remain as the frontline regulator for exempt AIs' regulated activities and will supervise their business in accordance with standards consistent with those of the SFC. The changes introduced by the Bill are necessary in order to strengthen the regulatory functions of the HKMA in relation to exempt AIs' regulated activities", the spokesperson added.
The amendments introduced by the Bill include provisions that -
- make more explicit the Monetary Authority's power to supervise the regulated activities of exempt AIs;
- require the Monetary Authority's approval of "executive officers" appointed by an exempt AI to be directly responsible for supervising the AI's regulated activities;
- provide for the keeping of a register by the HKMA of employees of exempt AIs involved in regulated activities;
- relax the existing secrecy provisions to facilitate exchange of information between the SFC and the HKMA in respect of exempt AIs' regulated activities;
- provide for powers for the HKMA to issue a public reprimand to exempt AIs which have committed misconduct in regulated activities.
The spokesperson said that the amendments introduced by the Bill would ensure adequate protection for investors and a level playing field between exempt AIs and SFC licensees.
The Bill is scheduled for introduction into the Legislative Council on 29 November, together with the SF Bill.
For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Jasmin Fung, Manager (Press), at 2878 8246
Hong Kong Monetary Authority
10 November 2000