On 26 Sep 2024, the HKMA issued a revised Certificate of Compliance form (MA(BS)1F(b)) requiring authorized institutions incorporated outside Hong Kong to submit quarterly certifications of adherence to specific Banking Ordinance provisions, including Part 4, Part 5, liquidity, and section 60A(1) requirements. The form mandates submission within 14 days after each quarter-end, with detailed contravention reporting and mandatory signatory certification by senior management.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 26 Sep 2024, the Hong Kong Monetary Authority (HKMA) issued a revised Certificate of Compliance form (MA(BS)1F(b)) for authorized institutions incorporated outside Hong Kong, mandating quarterly submissions under the Banking Ordinance to certify adherence to specific regulatory requirements.
Submission Requirements
The revised form requires authorized institutions to submit a duly completed Certificate of Compliance within 14 days after the end of each quarter, unless otherwise advised by the HKMA. Submission deadlines falling on public holidays are deferred to the next working day, as stipulated under section 63(2) of the Banking Ordinance.
Certification Obligations
Institutions must certify under the form that they have not contravened specified sections of the Banking Ordinance during the reporting period. This includes: (a) Part 4 rules regarding advances against own shares (excluding permitted exceptions under rule 28); (b) Part 5 rules on aggregate financial facilities to employees (excluding permitted exceptions under rule 32); (c) applicable liquidity requirements under section 97(1); and (d) rules under section 60A(1). If contraventions occur under (d), the specific sections must be detailed.
Form Completion and Signatory Requirements
The form must be completed in accordance with HKMA instructions, with the Chief Accountant and Chief Executive signing to certify accuracy. Institutions exempted from disclosures under the Rules must tick a designated box. A responsible contact person's name and telephone number must also be provided for HKMA queries.
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