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Following is a question by the Hon Regina Ip Lau Suk-yee and a written reply by the Financial Secretary, Mr John C Tsang, in the Legislative Council today (April 22):
Question:
Apart from monitoring the local banking system and maintaining the stability of Hong Kong dollar, the Hong Kong Monetary Authority ("HKMA") also manages the Exchange Fund with a total asset value as high as 1.5 trillion Hong Kong dollars, which has a significant bearing on the local financial market. At present, the Register of Members' Interests of the Exchange Fund Advisory Committee is available for public inspection at HKMA Offices. Although all HKMA staff are required to declare interests in accordance with HKMA Administration Circulars No. 3/2008 "Code of Conduct" and No. 1/2002 "Rules on Restrictions on Investment by HKMA Staff", information on such declaration of interests is not open for public inspection. In view of this, will the Government inform this Council:
(a) whether there is any difference between the declaration of interests required of HKMA's Chief Executive as a member of the Exchange Fund Advisory Committee and the declaration of interests required of him in accordance with the aforesaid administration circulars; if there is, of the details and why information on the interests declared by HKMA's Chief Executive in accordance with the administration circulars is not made public; and
(b) as the Chief Executive's Committee consists of HKMA's Chief Executive, Deputy Chief Executives and Executive Directors, why the Government does not make public the information on the interests declared by various members of the Committee?
Reply:
President,
1. As a member of the Exchange Fund Advisory Committee (EFAC), the Chief Executive of the HKMA is required to declare the following on an annual basis:
(a) proprietorships, partnerships or directorships of companies;
(b) remunerated employments, offices, trades, professions or vocations;
(c) shareholdings in a publicly listed or private company of more than 1% of the company's issued share capital; and
(d) other declarable interests, taking into consideration the nature of work of the Committee or Sub-Committee.
The declaration is available for inspection on request by any member of the public.
In accordance with the Rules on Restrictions on Investments by HKMA Staff, the Chief Executive of the HKMA is also required to declare the following to the Financial Secretary on an annual basis:
(a) investments held in and outside Hong Kong, as defined in the Rules;
(b) proprietorships, partnerships, or directorships of companies in or outside Hong Kong;
(c) shareholdings of 1% or more of the issued share capital in any public or private companies in or outside Hong Kong, and in the case of private companies, (i) the nature of the business of the private company, (ii) whether the company has active business activities, (iii) whether the officer has actively participated in the business of the company, and (iv) the names of other shareholders; and
(d) the name, occupation, place and nature of work of his spouse.
In addition, the Chief Executive of the HKMA is required to report to the Financial Secretary, within 7 days, any purchase or sale of foreign currency against the Hong Kong dollar involving HK$100,000 or more in any one day, any purchase or sale of shares or warrants or other instruments, any purchase or sale of unit trusts, mutual funds, insurance funds, Hong Kong equities index funds, pension funds or debt securities of HK$100,000 or more in any one day, any purchase and sale of any interest in land and buildings in or outside Hong Kong, and loan facilities obtained from, or arranged through, Authorised Institutions where each of such facilities exceed HK$100,000. If, having received any report on such transactions, the Financial Secretary considers that a conflict of interest exists, he may direct the Chief Executive of the HKMA to divest himself of such holdings.
These disclosure, declaration and reporting requirements are reviewed from time to time, taking into account the functions of the HKMA, general practice in the public sector and advice from the Independent Commission Against Corruption. The arrangements are consistent with those for senior officials in the civil service. The Chief Executive of the HKMA has given an undertaking to ensure that the content of his record of financial interests available for public inspection is beyond that required under standard government practice. A statement of his financial interests, going beyond those interests that are required to be disclosed as a member of EFAC, is available for public inspection on request.
2. According to the "Rules on Restrictions on Investments by HKMA Staff", HKMA staff at the level of Division Head and above, including Deputy Chief Executives and Executive Directors are subject to the same declaration and reporting requirements as the Chief Executive of the HKMA, except that they are required to make their declarations and reports to the Chief Executive of the HKMA rather than to the Financial Secretary. In view of the detailed personal data contained in them, these declarations and reports are not made available for public inspection. These arrangements are consistent with those for officials at similar levels in the civil service.
Ends/Wednesday, April 22, 2009
Issued at HKT 13:08
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