Chief Justice bids farewell

Speaking at a sitting of the Court of Final Appeal to mark his retirement on 16 July, Chief Justice Andrew Li said it has been the greatest honour of his life to serve as the first Chief Justice in the new order, adding he has been greatly enriched by the experience and has no regrets. Noting that Mr Li is much respected by the community, not just the legal community, Secretary for Justice, Wong Yan Lung said that Li is ‘a man of compassion whose first concern is for the people of Hong Kong’. After over 37 years’ work as advocate and judge, Mr Li will cease service on 31 August and proceed onto pre-retirement leave on 1 September. Chief Judge of the High Court Geoffrey Ma Tao-li
will succeed Li in September.

Competition Bill introduced in LegCo

The Competition Bill, which provides a legal framework for the effective implementation of competition policy, was gazetted on 2 July and introduced into LegCo on 14 July. The bill aims to prohibit and deter undertakings in all sectors from adopting anti-competitive conduct that prevents, restricts or distorts competition while an independent statutory Competition Commission will be established to investigate and bring public enforcement action in respect of anticompetitive conduct. A Competition Tribunal will be set up within the Judiciary as a superior court of record to hear and adjudicate on
competition cases brought by the commission and as private actions.

Agreement on Lehman Brothers reached

The Securities and Futures Commission and the Monetary Authority have jointly announced that an agreement has been reached with DBS Bank (HK) in relation to its distribution of Lehman Brothers-related constellation notes. The bank has offered to pay HK$651 million (US$84.2 million) to its customers who purchased constellation notes and who were classified by the bank, at the time of purchase, as lowrisk customers. The Commission and the Authority consider the bank’s resolution scheme as reasonable and appropriate in light of their regulatory concerns and that the agreement is in the public interest. The Commission also said they will not take further enforcement action against the bank and its employees in relation to the distribution of constellation notes save for any act of dishonesty, fraud, deception or conduct that is criminal in nature.

Lo Wu correctional institution reopens

The newly completed Lo Wu Correctional Institution has commenced operation with 135 female inmates transferred from Chi Ma Wan Correctional Institution. Situated at 163 Ho Sheung Heung Road, Sheung Shui, the medium-security east and west wings of the institution each have 400 penal places. The minimum-security main wing has 600 places. Chi Ma Wan and Chi Sun Correctional Institution, which closed last month, will be redeveloped. Works on the HK$1.5 billion (US$192 million) Lo Wu Correctional Institution redevelopment project started in April 2007. It now provides a multimedia education centre, vocational training workshops, parentchild centres, recreational facilities, multi-purpose classrooms and counselling rooms.

Views sought on new insurance authority

Professor KC Chan, the Secretary for Financial Services and the Treasury, has released a consultation paper on the proposed establishment of an independent insurance authority. The insurance sector and the public are invited to give their views during the threemonth study period. The government proposes to follow international regulatory practices to establish an insurance regulatory authority which is both financially and operationally independent of the Government. It will take over the work of the current Office of the Commissioner of Insurance, which is a government department. The bureau will table a bill on the establishment of an independent insurance authority at LegCo next year. A copy of the proposal is available at www.fstb.gov.hk. Written submissions should be received by 11 October.