Sep 11, 2013
September 6th 2013 - The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) jointly published today their conclusions on a joint supplemental consultation regarding the proposed scope of activities to be regulated under the new over-the-counter (OTC) derivatives regime, and regulatory oversight of systemically important participants (Note 1).
The conclusions paper summarises the comments received and the responses of the HKMA and the SFC to these comments. It also notes that further work is necessary and is being conducted to implement the new OTC derivatives regime.
In general, respondents supported the proposals. They recognised the need to extend Hong Kong’s licensing regime so that it also covers intermediaries that conduct OTC derivatives activities. They also agreed that the HKMA and the SFC should have effective regulatory powers in respect of systemically important participants given the potential risk they may pose to the financial stability of our markets.
Respondents welcomed the proposal to introduce transitional arrangements to implement the extended licensing regime. There were some concerns that the proposed duration of these arrangements may not be sufficient, and that some of the preconditions to benefit from them may not be sufficiently clear. The transitional arrangements have been fine tuned to address these concerns, and to facilitate those who have been engaging in OTC derivatives activities to move into the new licensing regime with minimum disruption to their existing businesses.
The revised proposals have been incorporated into the relevant Amendment Bill that sets out the legislative amendments for the proposed OTC derivatives regime. The Bill was introduced into the Legislative Council in July 2013.
Separately, the HKMA and the SFC are working on the detailed requirements under the new regime, which will be set out in subsidiary legislation, and plan to conduct a public consultation on these later this year.
"We are very proud to have been selected by SCB to support their 'GRC Journey,'" said Sebe Gerritsen, Regional Director Asia, BWise. "Their integrated approach towards Internal Audit, Risk Management, Compliance and Business Continuity Management is mature and sophisticated and requires a robust but flexible eGRC software platform. Our global expertise and many years of experience in deploying eGRC software in banking, combined with our local presence through our competent Thai partner Yip in Tsoi, allow us to provide SCB with a first-class GRC solution."
"With its strong expertise, we believe BWise will be able to provide a truly integrated, out-of-the-box but very flexible platform which can be configured to fit our specific needs and to also enhance our Internal Audit, Risk Management, Compliance and Business Continuity Management platform efficiency," said Dr. Ellen Nora Ryan, Head of Market and Operational Risk, Risk Management Group, SCB.
"Large financial institutions and enterprises in Southeast Asia are now faced with a highly regulated environment combined with local standards," said Rob Van Straten, Senior Vice President, BWise. "Our commitment to the region is underscored by the recent opening of our Bangkok office to deliver our integrated GRC approach to customers to efficiently achieve compliance and control over their financial and reputational risks. SCB is our second banking customer in Thailand and we expect to initiate more Asian projects in the near future."
Re-disseminated by The Asian Banker