Mapping responsibility: HKMA extends focus on management and its accountability
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On 16 October 2017, the Hong Kong Monetary Authority (HKMA) announced the introduction of a new Management Accountability Initiative (MAI) aimed at increasing the accountability of the senior management of Hong Kong registered institutions (RIs). The MAI, effective from 16 March 2018, requires every RI to identify (and disclose to the HKMA and the SFC) at least one individual principally responsible for: (a) the overall management of the whole of the business of the RI; and (b) each of seven business lines and six middle/back office functions listed in the Fourteenth Schedule to the Banking Ordinance, but only to the extent that the individuals are involved in the management of the business constituting a regulated activity for which the RI is registered
Our bulletin, Mapping responsibility: HKMA extends focus on management and its accountability, provides an overview of the MAI, looks at who the HKMA expects RIs to earmark under the MAI, considers how the MAI is expected to work with the existing regimes for executive officers and managers appointed under section 72B of the Banking Ordinance, summarises the information to be submitted to the HKMA and the SFC, and considers timing and next steps.
We hope the bulletin is of interest. We would of course be very happy to discuss the implications of the MAI in more detail should you wish. Please do not hesitate to contact one of the authors, Charlotte Robins, Matt Bower and Will Yip.