Deposit Protection Scheme (Asset Maintenance) Rules

Our Ref.: B9/62/2C

15 January 2007

The Chief Executive
Members of Hong Kong Deposit Protection Scheme

Dear Sir/Madam,

Deposit Protection Scheme (Asset Maintenance) Rules

I am writing to inform you that the Deposit Protection Scheme (Asset Maintenance) Rules ("the Rules") comes into effect today.

The Rules being subsidiary legislation are made by the Monetary Authority ("MA") under section 53 of the Deposit Protection Scheme Ordinance (Cap. 581). The object of the Rules is to empower the MA to require, under certain circumstances, a Scheme member to maintain assets in Hong Kong of a specified amount. The ultimate goal is to minimise any possible shortfall loss that may be suffered by the Hong Kong Deposit Protection Board in the liquidation of a failed Scheme member. For more details about the Rules, please refer to the Legislative Council brief enclosed at the Annex.

If you have any questions, please do not hesitate to contact Mr Raymond Tsai at 2878 1060 or Ms Tess Leung at 2878 8280.

Yours faithfully,

Raymond Li
Executive Director (Banking Development)

Encl.

Annex (PDF file, 592KB)

cc.

The Hong Kong Association of Banks (Attn: Ms Florence Hui)
Secretary for the Financial Services and the Treasury (Attn: Mr Clement Chan)