Page:Deposit Protection Scheme Ordinance (Cap. 581).pdf/12

13. Exemption

(1) A bank may apply to the Board for an exemption from section 12(1).

(2) An application under subsection (1) for an exemption is—

(a) to be made in the manner specified by the Board; and

(b) to be accompanied by such information and documents as the Board may reasonably require for the purpose of deciding whether the exemption should be granted.

(3) The Board may, on receipt of an application under subsection (1) from a bank—

(a) exempt the bank from section 12(1); or

(b) refuse to so exempt the bank.

(4) The Board shall not exempt a bank from section 12(1) unless it is satisfied that—

(a) the bank is incorporated outside Hong Kong;

(b) the deposits taken by the bank at its Hong Kong offices are protected by a deposit protection scheme, or other scheme of a similar nature, established and maintained in the jurisdiction in which the bank is incorporated; and

(c) the scope and level of protection available to those deposits under that scheme are not in all material respects narrower, and lower, than those that would be available to those deposits under the Scheme if the bank were not exempted.

(5) If the Board exempts a bank from section 12(1)—

(a) it is a condition of the exemption—

(i) that the bank shall pay an annual exemption fee of such amount as may be specified by the Board from time to time;

(ii) that the bank shall forthwith notify the Board of any change of circumstances which may affect the exemption and, if so required by the Board, supply further information and documents to assist the Board in deciding whether the exemption should continue to be granted; and

(iii) where the bank is exempted from section 12(1) after having been a member of the Scheme, that the bank shall, in relation to any deposit taken by it before the date specified in the notice referred to in subsection (6) as the date on which the exemption takes effect—

(A) at the written request of the depositor made within 3 months after that date; and

(B) without imposing any fee or penalty on the depositor, repay the deposit, and pay the interest accrued thereon, prior to maturity; and