Hong Kong Ordinances

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 53

Power of Monetary Authority to make rules

(1) The Monetary Authority may, after consultation with HKAB, make rules for
the purpose of enabling a Scheme member, or each Scheme member of a class of
Scheme members, to be required to maintain, in respect of the relevant
deposits maintained with the Scheme member, assets in Hong Kong.

(2) Rules made under this section may—

   (a)  empower the Monetary Authority to require a Scheme member, or each
        Scheme member of a class of Scheme members, to maintain, in respect of
        the relevant deposits maintained with the Scheme member, assets in
        Hong Kong in accordance with any requirement specified in the rules
        for the purpose;

   (b)  empower the Monetary Authority to specify, for the purpose of an asset
        maintenance requirement, the amount of assets to be maintained in Hong
        Kong by the Scheme member, or each of the Scheme members, subject to
        the requirement;

   (c)  specify the circumstances under which, and the manner in which, the
        Monetary Authority may issue an asset maintenance requirement;

   (d)  specify—

        (i)    the assets that are to be regarded as assets in Hong Kong;

        (ii)   the extent to which, and the manner in which, certain assets
               are to be taken into account; and

        (iii)  other matters to be taken into account, for the purpose of
               determining whether an asset maintenance requirement has been
               complied with;

   (e)  require that the Monetary Authority shall, before issuing an asset
        maintenance requirement, afford the Scheme member an opportunity of
        being heard;

   (f)  specify the time within which, and the manner in which, a Scheme
        member is to be heard before an asset maintenance requirement is
        issued;

   (g)  enable any person aggrieved by an asset maintenance requirement to
        apply to the Tribunal for a review of the decision;

   (h)  specify the time within which, and the manner in which, such an
        application is to be made;

   (i)  provide that every director and every chief executive of a Scheme
        member that contravenes an asset maintenance requirement commits an
        offence and is liable—

        (i)    on conviction on indictment to a fine of $400000 and to
               imprisonment for 2 years and, in the case of a continuing
               offence, to a further fine of $20000 for each day during which
               the offence continues; or

        (ii)   on summary conviction to a fine at level 6 and to imprisonment
               for 6 months and, in the case of a continuing offence, to a
               further fine of $10000 for each day during which the offence
               continues;

   (j)  provide for any specified defence to be available in proceedings for
        such an offence; and

   (k)  provide for any other matter relating to the asset maintenance
        requirement.

(3) In this section, “asset maintenance requirement” (維持資產規定)
means the requirement, referred to in subsection (2)(a), by the Monetary
Authority of a Scheme member, or each Scheme member of a class of Scheme
members, to maintain assets in Hong Kong. “asset maintenance requirement”
(維持資產規定)