### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

1. Short title
(Amended E.R. 3 of 2021)(1) This Ordinance may be cited as the Deposit Protection Scheme Ordinance.
(2) (Omitted as spent—E.R. 2 of 2014)

2. Interpretation
(1) In this Ordinance, unless the context otherwise requires—

applicant (申請人) means a person who applies to the Tribunal under section 41(1), (2) or (3) for a review of—
(a) a decision, or an assessment, of the Board; or
(b) a decision of the Monetary Authority;

authorized institution (認可機構) has the meaning assigned to it by section 2(1) of the Banking Ordinance (Cap. 155);

bank (銀行) means a company—
(a) that holds a valid banking licence; or
(b) the banking licence of which is for the time being suspended under section 24 or 25 of the Banking Ordinance (Cap. 155);

banking licence (銀行牌照) means a banking licence granted under section 16 of the Banking Ordinance (Cap. 155);
bare trustee (被動受託人), in relation to a deposit or portion thereof, means a person holding the deposit or that portion on trust for a beneficiary where the beneficiary has the exclusive right to direct how the deposit or that portion is to be dealt with subject only to the right of the person to resort to the deposit or that portion to satisfy any outstanding charge or lien or for the payment of duty, taxes, costs or other outgoings;
Board (存保委員會) means the Hong Kong Deposit Protection Board established by section 3;
chief executive (行政總裁), in relation to a Scheme member or a bank, means the chief executive appointed under section 74 of the Banking Ordinance (Cap. 155) in respect of the Scheme member or the bank, and includes an alternate chief executive so appointed;
client account (客戶帳戶), in relation to a depositor, means an account maintained by the depositor with a bank for the purpose of holding money held by the depositor for a client of the depositor, whether or not other money may be held in the account; 

contribution (供款) means—
(a) the build-up levy within the meaning of Schedule 4;
(b) the expected loss levy within the meaning of Schedule 4; or
(c) the surcharge within the meaning of Schedule 4;

deposit (存款) has the meaning assigned to it in the definition of deposit

### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

3. Establishment of Hong Kong Deposit Protection Board
(1) There is established by this section a body corporate with the corporate name of “Hong Kong Deposit Protection Board” in English and “香港存款保障委員會” in Chinese.
(2) The Board—
(a) has perpetual succession under its corporate name;
(b) shall provide itself with a common seal; and
(c) is capable of suing and being sued in its corporate name.
(3) The Board is not a servant or agent of the Government nor does it enjoy any status, immunity or privilege of the Government.

4. Composition of Board
(1) The Board is to consist of—
(a) the Secretary for Financial Services and the Treasury, or a person appointed by the Secretary, in writing, as his representative, as an ex officio member;
(b) the Monetary Authority, or a person appointed by the Authority, in writing, as his representative, as an ex officio member; and
(c) not fewer than 4 and not more than 7 other members appointed by the Chief Executive from among persons who, either because of their experience in finance, accounting, banking, law, administration, information technology or consumer affairs, or because of their professional or occupational experience, appear to the Chief Executive to be suitable for the appointment.
(2) The following are not eligible for appointment under subsection(1)(c)—
(a) a public officer;
(b) a person who is a director, or an employee, of—
(i) an authorized institution;
(ii) a holding company of an authorized institution;
(iii) a subsidiary of such a holding company; or
(iv) a subsidiary of an authorized institution.
(3) The Chief Executive shall appoint one appointed member of the Board as Chairman of the Board.
(4) The Chief Executive shall give notice of each appointment under subsection (1)(c) or (3) by notice published in the Gazette.
(5) Schedule 2 has effect with respect to the Board.

5. Functions of Board
The Board has the following functions—
(a) to establish and maintain the Scheme;
(b) to manage and administer the Fund;
(c) to assess and collect contributions and late payment fees;
(d) to decide the entitlement of depositors and other persons to compensation under Division 2 of Part 5;
(e) to pay compensation to depositors in accordance with this Ordinance;
(f) to pay rebates or refunds of contributions to Scheme members in accordance with this Ordinance;
(g) to recover from, or out of the assets of, the Scheme member concerned any amount of compensation paid to depositors from the Fund, together with any interest accrued thereon in accordance with section 38; and
(h) such other functions as are imposed on it under this Ordinance.

### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

6. Board to perform functions through Monetary Authority
(1) Unless otherwise directed by the Financial Secretary, the Board shall perform its functions under this Ordinance through the Monetary Authority.
(2) For the purposes of subsection (1), the Monetary Authority shall, under the direction of the Board, do all acts and things necessary for implementing the decisions of the Board.
(3) All costs and expenses incurred by the Monetary Authority for the purposes of subsection (1) shall be charged on the Exchange Fund.
(4) The Financial Secretary may, in relation to the costs and expenses that were charged under subsection (3) during such period as may be determined by him, direct that those costs and expenses, or such portion thereof as may be determined by him—
(a) shall be recoverable from the Fund; and
(b) shall, at a time determined by him, be paid to the Exchange Fund by the Board from the Fund.
(5) The Board shall comply with any direction given under subsection (4).

### Deposit Protection Scheme Ordinance 《存款保障計劃條例》

7. Powers of Board
The Board has power to do all such things as are necessary for, or incidental or conducive to, the performance of its functions and in particular, but without prejudice to the foregoing, may—
(a) borrow money from the Government or any other person for the purpose of performing its functions;
(b) claim from the liquidator or provisional liquidator of a failed Scheme member payment out of the assets of the failed Scheme member for reimbursement of the amount of compensation paid to the depositors concerned from the Fund, together with any interest accrued thereon in accordance with section 38;
(c) provide an indemnity to the liquidator or provisional liquidator of a failed Scheme member for the purpose of obtaining an early payment out of the assets of the failed Scheme member;
(d) make any compromise, agreement or arrangement—
(i) with the liquidator or provisional liquidator of a failed Scheme member, or with any other person, in respect of its claim against the assets of the failed Scheme member; or
(ii) with any person in respect of its claim against a Scheme member, in relation to which it is deemed under section 24 that a specified event never occurred;
(e) with the consent of the Financial Secretary, petition the Court of First Instance for the winding up of a Scheme member;
(f) employ persons to assist the Board in the performance of its functions;
(g) appoint persons as agents, or authorize persons—
(i) to assist the Board in the performance of its functions; or
(ii) where the Board is to perform its functions through the Monetary Authority, to assist the Monetary Authority in the performance of such functions;
(h) appoint persons as advisers to assist the Board in the performance of its functions;
(i) hold, acquire, lease, sell, charge, dispose of or otherwise deal with all kinds of property whether movable or immovable;
(j) do all such things as the Board thinks fit in respect of its administration and management; and
(k) exercise such other powers as are conferred on the Board under this Ordinance.