Hong Kong Ordinances

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 51

Power of Board to make rules

(1) The Board may, after consultation with the Financial Secretary and HKAB,
make rules—

   (a)  prescribing the requirements in accordance with which Scheme members
        shall maintain those information systems and other records to which
        the Board would, on the occurrence of a specified event, have access
        under section 32(2)(a);

   (b)  prescribing the manner in which compensation is to be paid to
        depositors from the Fund;

   (c)  prescribing the manner in which—

        (i)    contributions or late payment fees are to be paid by Scheme
               members; or

        (ii)   rebates or refunds of contributions are to be paid to Scheme
               members;

   (d)  requiring a Scheme member to make known to the public under specified
        circumstances—

        (i)    whether or not it is a member of the Scheme; or

        (ii)   whether or not a deposit, or any other financial product
               offered by the Scheme member, is a protected deposit, and
               prescribing the manner in which the requirement is to be
               complied with;

   (e)  prescribing anything required to be prescribed under this Ordinance
        other than Part 6 and section 5 of Schedule 3; and

   (f)  generally providing for the better performance of the functions of the
        Board.

(2) Rules made under this section may—

   (a)  provide that a contravention of a specified provision of the rules is
        an offence punishable—

        (i)    on conviction on indictment by a fine at level 6 and
               imprisonment for 2 years; or

        (ii)   on summary conviction by a fine at level 3 and imprisonment for
               6 months; and

   (b)  provide for any specified defence to be available in proceedings for
        such an offence.

(3) Rules made under this section shall not require a Scheme member to
maintain any information system or other records that contain information or
documents, or to submit any information or document, 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.