First Phase Review of the DPS and Consultation
The Board issued the consultation paper for the first phase review, focusing on enhancing protection to depositors, in April 2009 and published the consultation report in August 2009. Major enhancements concluded in the first phase review include raising DPS protection limit from HK$100,000 to HK$500,000, expanding DPS coverage to protect secured deposits, and introducing cost mitigating measures to eliminate the potential for cost transfer to depositors.
Second Phase Review of the DPS and Consultation
The Board issued the consultation paper for the second phase review, focusing on improving the efficiency and effectiveness of the DPS, in August 2009 and published the consultation report in November 2009. Major enhancements concluded in the second phase review include expediting the payout process and enhancing transparency of DPS coverage.
Enactment of the DPS (Amendment) Ordinance 2010
The DPS (Amendment) Bill 2010, for amending the DPS Ordinance to give effect to the enhancements concluded in the DPS review on improving deposit protection, mitigating the cost of providing additional protection and improving payout efficiency, was introduced into the LegCo in April 2010 and was enacted in June 2010. The enhancements took effect on 1 January 2011.