The Manager-in-Charge Regime: Ruffling feathers in the year of the Rooster?
09 February 2017
On 16 December 2016, the Securities and Futures Commission (SFC) announced the introduction of a Manager-in-Charge initiative (MIC Regime) aimed at increasing the accountability of the senior management of Hong Kong licensed corporations. The MIC Regime, effective from 18 April 2017, requires every licensed corporation to nominate (and disclose to the SFC) at least one “manager-in-charge” (MIC) for each of eight designated “core functions".
Does a licensed corporation need to restructure its reporting lines and internal management structure? Are managers off shore, perhaps employed by a parent or other group company, caught by the regime? How exactly should a licensed corporation identify its MICs? We also consider whether the regime increases the risk of personal liability for designated MICs and what steps a prospective MIC should now take to mitigate the risk that the SFC may in the future raise questions as to the adequacy of supervision and control over the designated core function.