On 26 Sep 2024, the HKMA published the revised Certificate of Compliance form (MA(BS)1F(a)(Rev. 3/2028)) for quarterly reporting of large exposure compliance under the Banking Ordinance. The updated form requires authorized institutions to certify adherence to BELR exposure limits, capital requirements, and Section 119A asset charge rules, with detailed reporting of maximum exposures and exempted transactions.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Form Identification and Purpose
On 26 Sep 2024, the Hong Kong Monetary Authority (HKMA) issued a revised Certificate of Compliance form (MA(BS)1F(a)(Rev. 3/2028)) for authorized institutions to report compliance with the Banking Ordinance's large exposure requirements. The form replaces the previous version and mandates quarterly submissions to verify adherence to the Banking Ordinance Large Exposures Rules (BELR).
Submission Requirements
Authorized institutions must submit the completed form to the HKMA within 14 days after the end of each quarter, with submission deadlines deferred to the next working day if falling on a public holiday. The form must be completed in accordance with HKMA's specified instructions to ensure all requisite information is provided accurately.
Key Reporting Sections
The form requires institutions to certify compliance across multiple sections: (i) Tier 1 and adjusted Tier 1 capital levels; (ii) absence of contraventions of BELR exposure limits (Parts 2–8), capital requirements, liquidity rules, and Section 119A; (iii) maximum aggregate exposures under BELR (e.g., ALCG, ACP, ACNP, equity, land exposures); (iv) assets under charge ratios and new/updated charges; and (v) exempted/approved transactions, including financial facilities excluded under specific BELR rules.
Specific Exposure and Transaction Reporting
Institutions must report detailed exposure metrics, including maximum ALCG exposure to linked counterparty groups, ACP/ACNP exposures under Part 8, and equity/land exposures under Parts 2 and 6. The form also mandates disclosure of exempted transactions (e.g., facilities under Rule 27(2), 44(1), 87(a)-(c)), approved charges under Section 119A, and top counterparties for exempted initial margin charges.
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