Hong Kong Ordinances

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 48

Power of Board to obtain information

(1) The Board may require a Scheme member to submit (including periodically
submit) such information as it may require for the performance of its
functions, and such information shall be submitted within such period and in
such manner as the Board may specify.

(2) Without prejudice to the generality of subsection (1), the Board may
require a Scheme member to submit, within such period and in such manner as
the Board may require, returns showing the amount of the relevant deposits
maintained with the Scheme member and the breakdown of those relevant
deposits.

(3) The Board may require a Scheme member to submit a report prepared by an
auditor appointed by the Scheme member and approved by the Board as to whether
or not, in the opinion of the auditor, information submitted pursuant to
subsection (1) or a return submitted pursuant to subsection (2), is correctly
compiled in all material respects.

(4) The Board may require a Scheme member to submit a report prepared by an
auditor appointed by the Scheme member and approved by the Board as to whether
or not, in the opinion of the auditor, the Scheme member has in place systems
of control that are adequate to enable the Board to perform its functions.

(5) Nothing in this section empowers the Board to require a Scheme member to
submit any information or report relating to any person who is—

   (a)  a beneficiary for whom a deposit, or portion thereof, maintained with
        the Scheme member is held by a depositor as a trustee or bare trustee;
        or

   (b)  a client for whom a deposit, or portion thereof, maintained with the
        Scheme member is held by a depositor in a client account.

(6) If a Scheme member, without reasonable excuse, fails to submit any
information or return as required under subsection (1) or (2), every director
and every chief executive of the Scheme member commits an offence and is
liable—

   (a)  on conviction on indictment to a fine of $400000 and to imprisonment
        for 2 years and to a further fine of $20000 for each day on which the
        failure continues; or

   (b)  on summary conviction to a fine at level 6 and to imprisonment for 6
        months and to a further fine of $10000 for each day on which the
        failure continues.

(7) If a Scheme member, without reasonable excuse, fails to submit an
auditor’s report as required under subsection (3) or (4), every director and
every chief executive of the Scheme member commits an offence and is liable on
conviction to a fine at level 6 and to a further fine of $10000 for each day
on which the failure continues.

(8) Any person who signs any document to which subsection (1), (2),

(3) or (4) relates and which he knows or reasonably ought to know to be false
in a material particular commits an offence and is liable—

   (a)  on conviction on indictment to a fine of $1000000 and to imprisonment
        for 2 years; or

   (b)  on summary conviction to a fine at level 6 and to imprisonment for 6
        months.

(9) In this section— “adequate” (足夠), in relation to systems of
control, includes operating effectively; “systems of control”
(管控制度) includes procedures. “adequate” (足夠) “systems of
control” (管控制度)