Forecasting clearer skies: SFC clarifies approach to external electronic and cloud storage
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The use of electronic data storage as a means to store information and documents is increasingly prevalent – generally and amongst licensed corporations. However, regulatory requirements in Hong Kong around keeping of records have historically been restrictive.
Whilst respecting the legitimate need for firms to be able to store records in an efficient manner, the Hong Kong regulators have responded on a number of fronts expressing their need and concern that they have continued power to access such records as necessary to fulfil their regulatory obligations, irrespective of where the records are held.
This bulletin considers the external data storage framework set out in the Securities and Futures Commission's 31 October 2019 Circular on the use of external electronic data storage, following clarifications made in its EDSP FAQs published on 10 December 2020.