Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Sunday, January 25, 1998
CONTENTS
========
1. Compensation Fund rules and upper limit relaxed
2. Update on avian flu
3. Code of practice to promote diving work safety and health
4. Welfare payments during Lunar New Year holiday
5. Festive lights to greet New Year
6. Opening of marine offices during Lunar New Year holiday
1. Compensation Fund rules and upper limit relaxed
***********************************************
In the light of the C A Pacific Securities
liquidation incident, the Government has agreed to relax
the current compensation rules and the upper limit of
compensation of the Compensation Fund. Meanwhile, a
special task force will be established under the
Securities and Futures Commission (SFC) and the Hong Kong
Stock Exchange (SEHK) to receive claims.
This was announced today (Sunday) by the Secretary
for Financial Services, Mr Rafael Hui; the SFC Chairman,
Mr Anthony Neoh; and the SEHK Chairman, Mr H C Lee.
As there might be cases where clients of C A Pacific
had been led to open margin account without their consent
or under misrepresentation, the authorities considered
that a more flexible approach should be adopted in
assessing their claims against the Compensation Fund. The
principle was that so far as their trading record and
account statements had not indicated the use of the margin
facility, they would be regarded as cash clients and would
be entitled to claim compensation under the Compensation
Fund.
Under the current compensation rules, the maximum
compensation payable to claimants against any single
registered broker was $8 million. If this rule was to be
observed, even if a flexible approach was adopted in
assessing claims as outlined above, the compensation that
each claimant may receive from the Compensation Fund would
likely be very limited.
In view of this, the Government agreed that the upper
limit of compensation should be set on a per claimant
basis. In other words, each qualified claimant may
receive a certain sum of money as compensation and would
not be subject to the $8 million limit. In this case, the
compensation that each claimant may receive under the
proposed arrangement would be more than what would
otherwise be available if the $8 million ceiling per
broker was maintained.
The Fund was established by the Government in 1985
with a view to providing protection for securities
investors. The Fund at present has $480 million.
Mr Hui said: "In order to put investors' hearts at
ease, we will increase the Compensation Fund as well as
making flexible arrangements. The SEHK and the SFC will
each inject $150 million into the Fund immediately and if
necessary, another $150 million will be injected by each
party.
"The Government has also undertaken to apply to the
Finance Committee of the Provisional Legislative Council
for a loan to top up the Fund when it falls below the
prudential level."
Mr Neoh said :"The SFC and SEHK will work closely
with the provisional liquidator to verify and assess the
claims received. The ceiling of compensation will be
determined on completion of the actuarial assessment.
However, the amount will certainly be higher than what
would otherwise be available if the $8 million ceiling per
broker is maintained."
Mr Lee said: "The SFC and SEHK has set up a special
task force to assist C A Pacific Securities clients to
register their claims and to apply for claims to the
Compensation Fund under existing securities regulations.
"The task force will liaise with the provisional
liquidator to obtain a list of the clients and will
contact the clients to assist them in filling out the
applications for claims. The SEHK will also publish
advertisements to notify clients to submit compensation
claims.
"A telephone hotline to answer enquiries from C A
Pacific Securities clients has been set up by the SEHK.
The telephone number is 2840 3729."
The SFC will closely monitor the financial position
of the broker-related margin finance companies and to step
up its supervision on margin trading activities. Where
necessary, appropriate measures will be taken to protect
the interests of investors.
Meanwhile, the Government will introduce legislation
to bring the margin financing activities under regulation
as soon as possible in order to further strengthen the
integrity of the securities market and enhance investor
protection.
End
2. Update on avian flu
*******************
The Department of Health (DH) announced today
(Sunday) that there was no new case of influenza A (H5N1)
today.
The total number of cases stands at 18 confirmed
cases.
The conditions of these cases remain the same as of
January 16.
End
3. Code of practice to promote diving work safety and health
*********************************************************
The Occupational Safety and Health Branch (OSHB) of
the Labour Department has published a code of practice to
promote the safety and health at work for industrial
diving.
The Chief Occupational Safety Officer of OSHB, Mr Tse
Ming-sing, said today (Sunday): "The Code of Practice -
Safety and Health at Work for Industrial Diving is aimed
at providing practical guidance on the general duties
provisions (Sections 6A and 6B) of the Factories and
Industrial Undertakings Ordinance (FIUO) in relation to
industrial diving."
The code is an approved code issued by the
Commissioner for Labour under Section 7A of the FIUO.
"The code recommends safe systems of work for diving
contractors, diving supervisors and divers to ensure the
safety and health of all personnel involved in the diving
operation," said Mr Tse.
"A safe and healthful working environment for those
employed in the diving operation can be achieved by
complying with the provisions of the code, and accidents
and ill-health arising from work can be avoided," he
explained.
He also reminded that the safety and health of
persons engaged in the diving operation was the
responsibility of the diving contractors, diving
supervisors and the divers carrying out work in the diving
operation.
"All persons working in the diving operation are
expected to take care of themselves and others. Also,
they should pay attention to potential hazards and follow
the rules and precautions during diving operation,
especially in hazardous locations such as culverts, locks
on or near outfalls and in pipelines."
Copies of the bi-lingual code of practice are
available for collection at the Advisory and Development
Division of the OSHB, 25th floor, Western Harbour Centre,
181 Connaught Road West, Hong Kong, or any Building,
Engineering and Construction Offices of the OSHB.
Further enquiries about the code can be made to the
Advisory Unit, Advisory and Development Division of the
OSHB on 2975 6414.
End
4. Welfare payments during Lunar New Year holiday
**********************************************
Recipients of Comprehensive Social Security
Assistance whose autopay day falls on January 28 of the
Lunar New Year holiday will receive advance payments on
January 27 (Tuesday).
"Special payment arrangements will also be made for
recipients of Social Security Allowance," a Social Welfare
Department spokesman said today (Sunday).
"Those who are paid through the Hong Kong Bank or
Hang Seng Bank on January 28 will also have their pay days
advanced to January 27.
"However, those who are paid through other banks on
either January 27 or 28 will get their payments on January
31," he added.
In case of doubt, recipients are advised to contact
their respective social security field units.
End
5. Festive lights to greet New Year
********************************
Victoria Park is lit up with festive lights after a
switch-on ceremony held today (Sunday) to usher in the
Lunar New Year.
Funded by the Eastern Provisional District Board
(EPDB), the lighting portrays a cartoon tiger extending
new year greetings to passers-by to welcome the "Year of
the Tiger".
The light board will be switched on between 6 pm and
6 am daily from today to Lunar New Year's Eve (January
27); and between 6 pm and 11 pm from the first day of the
Lunar New Year (January 28) to February 8.
Officiating at the ceremony were the Chairman of EPDB
, Mr Chan Bing-woon; District Officer (Eastern), Mr Lee
Kam-chung; Chairman of EPDB's Lunar New Year Lighting
Working Group, Mr Lam Tak-on; members of the Provisional
Urban Council, Mr Wong Kwok-hing and Mr Lai Chi-keong;
EPDB members, Mr Chu Hon-wah and Mr Yuen Ki-kong; and
District Commander (Eastern) of Hong Kong Police, Mr Yeung
Ying-wai.
End
6. Opening of marine offices during Lunar New Year holiday
*******************************************************
During the Lunar New Year holiday, Marine
Department's the Victoria Marine Office and Port
Formalities Office will be opened for from 9 am to 11 am
on Thursday (January 29) morning.
The two offices, located at Room 314 and Room 318 of
Harbour Building, 38 Pier Road, Central, will only process
entry and outward clearance of vessels on that day.
Meanwhile, all public cargo working areas will be
closed from 5 pm on Tuesday (January 27) and resume normal
operation at noon on Friday (January 30).
End
