LC Paper No. LS 124/98-99

Object(s) of the Bill

To adapt certain Ordinances and their subsidiary legislation to bring them into conformity with the Basic Law and with the status of Hong Kong as a Special Administrative Region of the People's Republic of China.

LegCo Brief Reference

2. G6/66/8C(99)II dated 23 February 1999 issued by the Financial Services Bureau.

Date of First Reading

3. 10 March 1999.

Comments

4. A list of the Ordinances affected by the proposed amendments in the Bill and a summary of the amendments are at Annex A and B respectively. Members may note that the Ordinances set out at Annex A relate to financial services matters. The proposed amendments are essentially technical changes to individual Ordinances.

5. If enacted, most of the proposed amendments in the Bill will take retrospective effect from 1 July 1997 to ensure that there is consistency in the interpretation of all laws on and after 1 July 1997. Amendments which relate to the provisions of the Mandatory Provident Fund Schemes Ordinance and its subsidiary legislation (Schedule 7 to the Bill) which are yet to come into operation will take effect from the date when the relevant provisions come into operation.

6. The Bill proposes, among other things, the substitution of "other countries" by "places outside Hong Kong" in section 18(1)(h) of the Professional Accountants Ordinance (Cap. 50) and the substitution of "territory" by "place" in the context of "country or territory outside Hong Kong" in the Occupational Retirement Schemes Ordinance (Cap. 426). In relation to such proposed amendments, we have written to the Administration asking for clarification on the following matters :

1. section 18(1)(h) of Cap. 50 provides that the Council of the Hong Kong Society of Accountants ("the Council") may exchange information with similar bodies and with members of the profession in other countries and arrange with such bodies for the reciprocal recognition of accountants. We are asking the Administration to explain why the proposed adaptation is necessary and to confirm whether the Council has been applying section 18(1)(h) to the similar body and members of the profession in the Mainland;
   
   
2. the references to "territory" in Cap. 426 primarily relate to the registration and regulation of off-shore occupational retirement schemes domiciled in a country or territory outside Hong Kong. We are asking the Administration to explain why the proposed adaptation is necessary and to confirm whether there are occupational retirement schemes in Hong Kong which are domiciled in the Mainland; and
   
   
3. the reference to "country or territory outside Hong Kong" for the purpose of recovery of proceeds from drug trafficking in the Drug Trafficking (Recovery of Proceeds) Ordinance (Cap. 405) is proposed to be adapted to "country, territory or place outside Hong Kong". We are asking the Administration to account for the inconsistency in the proposed adaptation of similar references in Cap. 405 and Cap. 426.

Public Consultation

7. There has not been any public consultation on the Bill.

Consultation with the LegCo Panel

8. No consultation with any LegCo Panel on the details of the Bill has been carried out.

Conclusion

9. Apart from the issues set out in paragraph 6 above, we are also asking the Administration to confirm whether it has consulted the organizations that may be affected by the Bill. A further report will be issued in due course.


Prepared by

FUNG Sau-kuen, Connie
Assistant Legal Adviser
Legislative Council Secretariat
8 March 1999

LS/B/52/98-99

Annex A

Item No.	Ordinances and subsidiary legislation
1.	Insurance Companies Ordinance (Cap. 41)
2.	Professional Accountants Ordinance (Cap. 50)
3.	Chit-Fund Business (Prohibition) Ordinance (Cap. 262)
4.	Census and Statistics Ordinance (Cap. 316)
5.	Exchanges (Special Levy) Ordinance (Cap. 351)
6.	Occupational Retirement Schemes Ordinance (Cap. 426)
7.	Mandatory Provident Fund Schemes Ordinance and its subsidiary legislation (Cap. 485)

Annex B

Notes:

⁽¹⁾ The reference to "Crown" is found in section 55A of the Insurance Companies Ordinance (Cap. 41). The Ordinance regulates the carrying on of insurance business through the Insurance Authority appointed under the Ordinance. Under section 55A of the Ordinance, the "Crown" is exempted from any liability incurred by things done by public officers who perform their functions under the Ordinance in good faith. Since the matter concerned is action done by public officers, and the regulation of insurance business is an affair for which the Government of the HKSAR is solely responsible, the reference to "Crown" is proposed to be adapted to "Government" in accordance with item 2 of Schedule 8 to Cap. 1.

⁽²⁾ This term appears in section 18(1)(h) of the Professional Accountants Ordinance (Cap. 50), which provides that the Council of the Hong Kong Society of Accountants may exchange information with similar bodies and with members of the profession in other countries and arrange with such bodies for the reciprocal recognition of accountants.

⁽³⁾ The references to "territory", which are found in the Occupational Retirement Schemes Ordinance (Cap. 426), primarily relate to the registration and regulation of off-shore occupational retirement schemes domiciled in a country or territory outside Hong Kong.