Hong Kong: Accountability of senior management | KPMG | GLOBAL

Hong Kong: Accountability of senior management, licensed corporations

Hong Kong: Accountability of senior management

Rules from Hong Kong’s Securities and Futures Commission (SFC) implement new "managers-in-charge" incentives to heighten the accountability of senior management of all licensed corporations and to promote awareness of senior management obligations. The new "managers-in-charge" regime is effective in April 2017, and licensed corporations will need to submit certain information to the SFC no later than 17 July 2017.

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The concept of holding senior management of a licensed corporation accountable for misconduct is not new, given that the SFC’s rules are built upon existing regulations. Under the new initiative, the SFC aims to heighten the awareness of "managers-in-charge" with respect to their obligations and liability under the law. 

The SFC has taken steps to foster a sense of genuine responsibility and clear accountability for licensed corporations with respect to their activities and to encourage proper conduct and behaviour. The intention of the SFC is to see front-line business managers take on responsibility for compliance—instead of solely relying on the compliance department—by setting a tone from the top that consistently places client interests and the integrity of the market at the center of business decisions. 

 

Read a 2017 report [PDF 284 KB] prepared by the KPMG member firm in Hong Kong

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