HKMA Proposes Revisions to Policy Module on Conduct at Banks
HKMA is consulting the banking industry on revisions to the Supervisory Policy Module CG-3 on Code of Conduct, with the comment period closing on April 09, 2021. The proposed revisions have been highlighted in track changes, with key revisions relating to the Application, Oversight by Senior Management, and Internal Control sections of the module. In general, the module sets out the minimum standards that HKMA expects authorized institutions to adopt in respect of their codes of conduct and elements of an effective system for enforcing the Codes.
The policy module applies to all authorized institutions. In the case of locally incorporated authorized institutions, the scope should cover all their branches and subsidiaries subject to the consolidated supervision of HKMA. An overseas-incorporated authorized institution may adopt the Code of Conduct formulated at the group level if it can demonstrate to the satisfaction of HKMA that the relevant group policy is consistent with the requirements set out in this module, or with certain other prescribed conditions. Failure to adhere to the standards and requirements in this module may call into question whether an authorized institution continues to satisfy certain criteria under seventh Schedule to the Banking Ordinance. This module should be read in conjunction with other relevant Supervisory Policy Manual modules, including CG-1 “Corporate Governance of Locally Incorporated Authorized Institutions” in the case of locally incorporated authorized institutions, CG-5 “Guideline on a Sound Remuneration System,” and CG-6 “Competence and Ethical Behavior,” as well as any other applicable guidance issued and updated by HKMA.
Comment Due Date: April 09, 2021
Keywords: Asia Pacific, Hong Kong, Banking, Code of Conduct, Banking Ordinance, Supervisory Policy Manual, Governance, Operational Risk, HKMA
Previous Article
FSC Taiwan Grants License to Internet-Only Banks in TaiwanRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.