[Hong Kong]
Principles for Operational Resilience and Revised Principles for Sound
Management of Operational Risk
HKMA
Circular, 21 Apr 2021
The
Basel Committee on Banking Supervision (“BCBS”) recently issued two sets of
principles, viz., the Principles for Operational Resilience (“POR”) and the
Revised Principles for Sound Management of Operational Risk (“Revised PSMOR”).
The HKMA notes that many of the concepts and requirements within the POR are
already covered in its existing supervisory guidance. As for the Revised PSMOR,
authorized institutions are expected to implement the Revised PSMOR as soon as
practicable. To assist AIs in the process, the HKMA plans to provide relevant
guidance through revising SPM module OR-1 on Operational Risk Management and
will consult the industry about the proposed revisions in due course.
Full
text: click here
[Hong Kong] SFC steps up
watch over fund exposures
The Standard, 22 Apr 2021
The Securities and Futures Commission is
enhancing its monitoring of prime brokers' exposures to highly leveraged funds
to mitigate the risk posed to the market and to brokers in the event of
defaults, said Joseph Chan Ho-lim, the Acting Secretary for Financial Services
and the Treasury. In a written reply to a question in the Legislative Council
with regard to the forced liquidation of family office Archegos Capital
Management, Chan said the SFC has been closely monitoring the situation and
made inquiries with prime brokers in Hong Kong, with a view to procuring an
orderly wind-down of ACM's positions to avoid any adverse impact on Hong Kong's
securities market.
Full text: click here
