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
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
