We have compiled the following chronology table which serves as a quick reference point to track the circulars and guidance published by HK financial services regulators in relation to COVID-19. We will update the table regularly. Kindly note that the table is not intended to capture all regulatory publications on an exhaustive basis.
Securities and Futures Commission (SFC)
Circulars/Guidelines |
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TITLE |
SUMMARY |
DATE |
LINK |
REMARKS |
1 | Circular to licensed corporations – Margin requirements for non-centrally cleared OTC derivative transactions |
The SFC published a circular informing licensed corporations (LCs) that the SFC will defer the introduction of initial margin (IM) requirements for non-centrally cleared over-the-counter (OTC) derivative transactions by one year to provide operational relief in light of the COVID-19 outbreak. The IM requirements for LCs which are contracting parties to non-centrally cleared OTC derivative transactions entered into with a covered entity were originally to be phased in starting from 1 September 2020. In light of the Basel Committee on Banking Supervision and the International Organization of Securities Commissions' announcement of the one-year extension of the deadlines for completing the final implementation phases of the IM requirements for non-centrally cleared OTC derivatives, the SFC has accordingly extended the phase-in schedule for the IM requirements by one year, summarized as follows:
For avoidance of doubt, the variation margin requirements will still become effective on 1 September 2020. |
7 May 2020 |
Click here | |
2 | Circular to licensed corporations – Management of cybersecurity risks associated with remote office arrangements |
The SFC published a circular reminding licensed corporations (LCs) to assess their operational capabilities and implement appropriate measures to manage cybersecurity risks associated with remote office arrangements, in light of the increased use of such arrangements as a result of the COVID-19 outbreak. The SFC set out some examples of controls and procedures LCs may take in relation to various aspects of remote office arrangements: Remote access to internal network and systems - LCs should consider the below measures (amongst others) to mitigate cybersecurity risks:
Use of video conferencing platforms – LCs should consider the below measures (amongst others) to mitigate the risk of unauthorized access and leakage of critical or sensitive data
The SFC also reminded LCs to put in place other measures for enhancing operational capabilities and monitoring mechanisms for remote office activities, such as: System capabilities:
Surveillance and incident handling:
Cybersecurity training and alerts:
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29 April 2020 | Click here |
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