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Following is the speech by the Secretary for Financial Services, Mr Rafael Hui, in moving the committee stage amendments to Clause 4 of the Insurance Companies (Amendment) Bill 1999 in the Legislative Council today (Friday):

President,

I move that Clause 4 be amended as set out in the paper circulated to members.

The Insurance Companies (Amendment) Bill 1999 seeks to strengthen the regulation of Lloyd's activities in Hong Kong, as well as to enhance the effectiveness of the insurance regulatory system by requiring insurers to provide more information and in a more timely manner.

Clause 4 of the Bill is related to the requirements to be complied with by Lloyd's. The proposed provision seeks to bring the regulation of Lloyd's on a par with that of insurers.

The proposed amendments to Clause 4 are improvements on drafting points as recommended by the Legal Services Division of the Legislative Council Secretariat. The amendment has no implication on the original legislative intent.

Items (a), (c) and (d) of the CSAs are technical amendments by which "Lloyd's and its members" in the original proposed section is to indicate more precisely as references to Lloyd's, any members of Lloyd's or the members of Lloyd's taken together.

Item (b) of the amendment seeks to amend the original proposed section 50B(4) in respect of the procedures of requiring Lloyd's to remove its authorized representative if the Insurance Authority considers him no longer a fit and proper person for that position. As recommended by the Legal Services Division of the Legislative Council Secretariat, we have set out the appeal procedures in greater detail. The addition proposed by the amendment provides for, inter alia, when the notice of objection issued by the Insurance Authority becomes effective and that the notice remains effective during the appeal period. In other words, the representative in question shall be removed on the date specified in the notice. If the appeal is allowed, Lloyd's may reinstate the representative.

Thank you, President.

End/Friday, July 16, 1999

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