SFC fully implements Manager-In-Charge regime

17 Oct 2017



The Securities and Futures Commission (SFC) today announced the full implementation of the Manager-In-Charge (MIC) regime (Note 1) following a six-month transition period which ended on 16 October 2017.

During the transition period, about 10,000 individuals were appointed by licensed corporations as MICs responsible for managing important functions. Around 40% of these individuals are not licensed persons and they are primarily responsible for managing operations or control functions (Note 2).

Under the regime, MICs of overall management oversight and key business line functions are expected to be responsible officers (ROs). The vast majority of these MICs are already ROs. At present, the SFC is handling RO applications from about 500 MICs of these two core functions.

"Our MIC regime has been working well to clarify the accountability of the senior management of licensed firms and promote greater awareness of their obligations under Hong Kong’s regulations," said Mr Ashley Alder, the SFC’s Chief Executive Officer. "It is encouraging that many firms have worked hard to strengthen their governance structures."

On 16 October 2017, the Hong Kong Monetary Authority (HKMA) issued a circular requiring registered institutions (RIs) (Note 3) to submit their up-to-date management structure information and organisational charts via email to both the HKMA and the SFC (Note 4). To allow sufficient time for preparatory work, RIs are expected to report the required information starting from 16 March 2018 and not later than 16 April 2018. The SFC has updated the relevant Frequently Asked Questions on its website accordingly.

End

Notes:

  1. The SFC introduced the MIC regime in a circular issued to licensed corporations on 16 December 2016. See the accompanying press release.
  2. These individuals are not required to be licensed because they do not conduct regulated activities. They are primarily responsible for managing a licensed corporation’s operations or control functions such as compliance, risk management, finance, information technology and anti-money laundering.
  3. "Registered institutions" are authorized institutions under the Banking Ordinance which are registered with the SFC to conduct regulated activities.
  4. Submissions should be made to the HKMA at RI_management_info@hkma.iclnet.hk  and to the SFC at mpra@sfc.iclnet.hk.


Page last updated : 17 Oct 2017