[Hong Kong] Supervisory Policy
Manual (SPM): CS-1 “Group-wide Approach to Supervision of Locally Incorporated
Authorized Institutions”
HKMA Circular, 20 Jul 2021
The HKMA issued a revised version of the Supervisory
Policy Manual (SPM): CS-1 “Group-wide Approach to Supervision of Locally
Incorporated Authorized Institutions” as a guidance note following consultation
with the two industry Associations. The SPM module was revised primarily to
reflect the current supervisory approach and practices adopted by the HKMA in
relation to a locally incorporated authorized institution where it forms part
of a banking, financial or commercial group and to incorporate relevant
principles in international standards concerning the supervision of financial conglomerates.
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[Hong Kong] Consultation on a draft SPM module GS-1 on “climate risk management”
HKMA Consultation, 20 Jul 2021
The HKMA issued a consultation on a draft SPM module
GS-1 on “climate risk management” to provide guidance
to authorized institutions on the key elements of climate-related risk
management; and to set out the HKMA’s approach to, and expectations in,
reviewing AIs’ climate-related risk management. The consultation period ends on
20 August 2021.
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[Hong Kong] Replies to Legislative Council Questions -
Cross-boundary Wealth Management Connect
HKSAR Press Releases, 21 Jul 2021
In the Legislative Council, the Secretary for
Financial Services and the Treasury Mr. Christopher Hui was asked about the current
proposal on the implementation arrangement for the Northbound investor
eligibility and the Southbound wealth management product scope.
For Northbound investor eligibility, Hong Kong
residents who hold Hong Kong identity cards and are assessed by Hong Kong banks
as not being vulnerable customers in accordance with the HKMA's circular of
September 25, 2019 "Investor Protection Measures in respect of Investment,
Insurance and Mandatory Provident Fund Products" can participate in the
Northbound Scheme.
For Southbound wealth management product scope, the
HKMA and the Financial Services and the Treasury Bureau plan to include
relatively low-risk and simple wealth management products at the initial stage
of the implementation of the scheme. Therefore, structured products or products
mainly involving derivatives will not be included in the scope of eligible
products. They expect that at the initial stage, the Southbound Scheme will
mainly cover deposits, low to medium-risk and non-complex bonds and Hong Kong
domiciled funds authorised by the Securities and Futures Commission.
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