DEPOSIT PROTECTION SCHEME ORDINANCE
Ord. No. 7 of 2004
A295
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 $400,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $20,000 for each day during which the offence continues; or
