Yesterday, the Hong Kong Monetary Authority (HKMA) introduced by way of a circular new measures to heighten management accountability at Registered Institutions (RIs) for conducting or supervising the conduct of businesses that constitute regulated activities (RAs). These measures are detailed in a set of FAQs accompanying the circular.
This clarification is not unexpected given questions raised around how the Securities and Futures Commission’s (SFC) Manager in Charge (MIC) regime would be harmonised with the regime administered by the HKMA under section 72B of the Banking Ordinance (BO) (please see our briefing on the MIC regime here). However, the new guidance will require RIs to consider their existing governance frameworks and amend where appropriate to ensure full compliance with the HKMA’s expectations.
TIMETABLE FOR IMPLEMENTING THE NEW CIRCULAR AND FAQS
Given the tight timeline, RIs should begin reviewing their organisational structure and identifying who is principally responsible for each business conducting RAs, and making any necessary changes to comply with this new guidance.
Please click here to read our full briefing.