The following is issued on behalf of the Hong Kong Monetary Authority:

     Below is the response of the Chief Executive of the Hong Kong Monetary Authority (HKMA), Mr Norman Chan, in relation to the Report of the Governance Sub-Committee of the Exchange Fund Advisory Committee on the case of Mr James Lau's property transactions in 2010:

     "I sincerely thank the Governance Sub-Committee (GSC) for completing the review work and publishing its report within a short period of time. We agree with the GSC's findings that there does not appear to be a conflict of interest issue on the part of Mr James Lau in this case, and that Mr Lau had not declared the mortgage loans as required by the HKMA rules. We concur with the GSC's view that given the senior position held by Mr Lau in the HKMA and the Hong Kong Mortgage Corporation, he should have had the sensitivity and taken the care to understand and comply with the relevant declaration requirements for taking out mortgage loans. Mr Lau has retired from the HKMA, but had he remained an HKMA staff member, a warning would have been given to him for his failure to declare the loans, with the proviso that any further breach of the investment restriction or declaration rules would lead to disciplinary actions being instituted against him. In addition, we accept the GSC’s recommendations to further refine the declaration arrangements and will implement them as soon as possible."

Ends/Friday, July 29, 2016
Issued at HKT 18:45

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