Hong Kong Ordinances

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 23

Monetary Authority to report to Chief Executive in Council on occurrence of specified event

(1) Subject to subsection (2), the Monetary Authority shall, as soon as
practicable after a specified event has occurred, report the occurrence to the
Chief Executive in Council.

(2) If a specified event has occurred in relation to a Scheme member by virtue
of section 22(1)(a)(ii), the Monetary Authority shall, before reporting the
occurrence—

   (a)  in the case where the Scheme member is incorporated in Hong Kong—

        (i)    give the Scheme member not less than 7 days’ notice in
               writing

(or such lesser period as is permitted under subsection (3)) informing the
Scheme member of— (A) his decision under section 22(2) that compensation
should be paid to the depositors of the Scheme member; and (B) the reasons for
his decision;

        (ii)   afford the Scheme member an opportunity to submit to him
               representations in writing on the decision and reasons within
               the period of the notice; and

        (iii)  incorporate his decision, the reasons for his decision, and the
               Scheme member’s representations, if any, in his report to the
               Chief Executive in Council;

   (b)  in the case where the Scheme member is incorporated outside Hong
        Kong—

        (i)    give the Scheme member, at its principal place of business
               outside Hong Kong, not less than 7 days’ notice in writing
               (or such lesser period as is permitted under subsection (3))
               informing the Scheme member of— (A) his decision under
               section 22(2) that compensation should be paid to the
               depositors of the Scheme member; and (B) the reasons for his
               decision;

        (ii)   afford the Scheme member an opportunity to submit to him
               representations in writing on the decision and reasons within
               the period of the notice; and

        (iii)  incorporate his decision, the reasons for his decision, and the
               Scheme member’s representations, if any, in his report to the
               Chief Executive in Council.

(3) The Monetary Authority may give a Scheme member less than 7 days’ notice
in writing referred to in subsection (2) if—

   (a)  he has the consent of the Financial Secretary to do so; and

   (b)  to do so is reasonable in the circumstances.

(4) If a specified event has occurred in relation to a Scheme member by virtue
of section 22(1)(a)(ii), the Chief Executive in Council shall, as soon as
practicable after receipt of the Monetary Authority’s report on the
occurrence, by notice in writing given to the Monetary Authority confirm or
revoke the Monetary Authority’s decision under section 22(2) that
compensation should be paid to the depositors of the Scheme member.

(5) In determining whether to confirm or revoke under subsection

(4) the Monetary Authority’s decision, the Chief Executive in Council shall
have regard to—

   (a)  the interests of the depositors of the Scheme member;

   (b)  the general stability and effective working of the banking system in
        Hong Kong; and

   (c)  such other factors as the Chief Executive in Council considers
        appropriate in the public interest.