HONG KONG: Consultation Response on Establishment of Effective Resolution Regime for Financial Institutions in Hong Kong

Thursday October 15 2015

On 9^th October 2015, the Government and the financial regulators, namely the Hong Kong Monetary Authority, the Securities and Futures Commission and the Insurance Authority released a consultation response to the second stage of public consultation on proposals to establish a cross-sector resolution regime for financial institutions (FIs), including financial market infrastructure, in Hong Kong. The consultation response summarises the respondents` views on the proposals, and sets out the Government`s responses along with its refined policy positions on certain aspects of the proposed resolution regime.

The consultation response contains further information on the latest policy position in relation to certain aspects of the proposed regime, including pre-resolution powers, loss absorbing capacity requirements to facilitate bail-in, resolution funding arrangements, the recognition of cross-border resolution actions and safeguards for those affected by resolution action, including appeal mechanisms.

It is expected that a bill to establish the local resolution regime will be introduced into the Legislative Council by the end of 2015.

Click on the link above for further details.