HKMA Circular on Management Accountability at Registered Institutions
HKMA issued guidance on management accountability, at Registered Institutions, for conducting or supervising the conduct of businesses that constitute regulated activities. The guidance is set out in the form of a list of frequently asked questions.
Under the guidance, relevant information on individual chief executives, alternate chief executives, directors, and section 72B managers principally responsible for the regulated activities business should be submitted to the HKMA and the SFC. In addition, an organization chart depicting the Registered Institution’s management and governance structure relevant to its regulated activities business should be provided. To allow sufficient time for preparatory work, Registered Institutions are provided with six months for preparation and are expected to submit the required information by April 16, 2018. For applications of registration as a Registered Institution or addition of regulated activities, applicants should also submit the required information to the HKMA in support of their applications, starting from the same date.
This guidance should be read in conjunction with Supervisory Policy Manual (SPM) module SB-1 “Supervision of regulated activities of SFC-registered authorized institutions,” along with SPM modules CG-1 “Corporate governance of locally-incorporated authorized institutions” and CG-2 “Systems of control for the appointment of managers.”
Keywords: Asia Pacific, Hong Kong, Banking, Business Conduct, Management Accountability, Guidance, Corporate Governance, HKMA
Previous Article
EC Publishes US-EU Bilateral Agreement and Related Council DecisionsRelated 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.