Note: The following statement of reasons should be read in conjunction with the statement(s) of reasons appended to the:

• Securities Act (American International Assurance Company (Bermuda) Limited) Exemption Amendment Notice 2010.

This notice, which comes into force on its notification in the Gazette and expires on 31 May 2014, exempts American International Assurance Company (Bermuda) Limited (AIAB) and every person acting on its behalf from section 53E(1) of the Securities Act 1978 (the Act).

AIAB is incorporated in Bermuda. The Bermuda Monetary Authority currently allows AIAB to file accounts prepared and audited in accordance with the provisions of Hong Kong law in place of those usually required under the Insurance Act 1978 of Bermuda. The exemption applies only if this continues to be the case.

The effect of the exemption is to relieve AIAB from the requirement to have its financial statements audited by a qualified auditor as defined in section 2C of the Act. The exemption will allow AIAB to have its financial statements audited by its Hong Kong auditor instead.

The Securities Commission considers that it is appropriate to grant the exemption because—

• the Commission has had regard to the audit requirements that must be complied with by AIAB. The condition of the exemption requires that the financial statements are audited in accordance with those requirements:

• the Commission is satisfied that there will be no detriment to investors as a result of the audit being undertaken in accordance with Hong Kong law:

• the exemption complements exemptions granted to AIAB from certain provisions in the Financial Reporting Act 1993.

Note: The preceding statement of reasons should be read in conjunction with the statement(s) of reasons appended to the:

• Securities Act (American International Assurance Company (Bermuda) Limited) Exemption Amendment Notice 2010.