Hong Kong’s upcoming financial regulations
This comment piece outlines Hong Kong's upcoming operational and regulatory requirements.
Download the full comment piece in PDF format » (153.16 kB)
Various circulars issued by the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) covered the operational and regulatory requirement for the general banking and securities activities and Renminbi business in Hong Kong.
Compliance requirements for Registered Institutions (RIs)
HKMA issued a circular to all Registered Institutions with regard to the SFC Circular dated 28 July 2010. It provided intermediaries with a list of operational measures when providing client access to trade documents through the intermediaries’ websites.
Registered Institutions are required to implement the operational safeguards set out by SFC before they provide client access to trade documents which are regulated under CNR (Contract Notes, Statements of Account and Receipts) through their websites. The intermediaries should obtain positive consent from the clients to accept the method for accessing their websites, generally, via the internet. The HKMA will assess the compliance of the Registered Institutions with the CNR in its supervisory process.
All registered institutions must review their internet system which should be in compliance with the requirement for the client access and data protection.
Representation on the expiry of full deposit guarantee
All licensed banks are advised that the full deposit guarantee introduced by the Government in October 2008 (Guarantee) will expire on 31 December 2010.
Licensed banks must remove all guarantee signs displayed on the premises and websites or any advertisements or promotional materials. Misrepresentation of protection status of financial products offered by bank could be liable to legal as well as reputational risk. All licensed banks must take immediate action to ensure compliance with the requirement and alert their customers of the impending expiry of the full deposit guarantee. Additionally, they must highlight that their institution is a member of the Scheme and the level of deposit protection under the Scheme will be raised from HK$100,000 to HK$500,000 commencing on 1 January 2011.
Register of Authorized Institutions
Authorized Institutions are requested to lodge with the HKMA copies of the disclosure statement and documents and submit by electronic form, which is in pursuant to the Section 20(1) of the Banking Ordinance. The new procedures may enhance the information contained in the Register is kept up-to-date for public inspection. Authorized Institutions should send this information by electronic mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it within 3 working days after the first publication or exhibition of such information.
