*****************************************

Following is a question by the Hon Bernard Chan and a written reply by the Secretary for Financial Services, Mr Stephen Ip, in the Legislative Council today (June 20):

Question:

It has been reported that the Government is considering a plan to merge the Mandatory Provident Fund Schemes Authority and the Office of the Commissioner of Insurance. In this connection, will the Government inform this Council of:

(a) details of the plan; and

(b) the impact on insurance companies upon implementation of the plan?

Reply:

Madam President,

(a)&(b) A consultancy study will soon be commissioned to examine the appropriate institutional arrangements for the Office of the Commissioner of Insurance. The consultant will examine different options. Merging the Office of the Commissioner of Insurance with the Mandatory Provident Fund Schemes Authority is only one of the possible options for consideration and we have an open mind on the future institutional set-up of the Office of the Commissioner of Insurance. Since a decision has yet to be taken, it is too early at this juncture to comment on the impact of the future set-up on insurance companies.

End/Wednesday, June 20, 2001

NNNN