On 24 Oct 2024, the HKMA issued a revised standard LAC disclosure template (Template CCA(A)) and updated Code of Practice chapter LAC-1, both effective 1 January 2025. The template revisions align with consequential changes to the Banking (Disclosure) Rules' Table CCA, while the updated LAC-1 chapter clarifies the indicative threshold for LAC requirements implementation based on the February 2024 implementation review report.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Revised LAC Disclosure Template
On 24 Oct 2024, the Hong Kong Monetary Authority (HKMA) issued a revised standard LAC disclosure template (Template CCA(A)) under rule 52(1)(b) of the Financial Institutions (Resolution) (Loss-absorbing Capacity Requirements — Banking Sector) Rules. The revised template replaces the current version to incorporate consequential updates aligned with the revised Table CCA under the Banking (Disclosure) Rules, enhancing clarity for resolution entities and material subsidiaries in disclosing regulatory capital instruments and non-capital LAC debt instruments. Both the revised template and Table CCA will take effect concurrently on 1 January 2025, requiring use for all reporting periods ending on or after this date.
Updated Code of Practice Chapter LAC-1
On 24 Oct 2024, the HKMA also issued an updated version of the Code of Practice chapter LAC-1 'Resolution Planning — LAC Requirements'. This update repeals outdated references and provides clarified considerations regarding the indicative threshold for LAC requirements implementation, as outlined in the HKMA's February 2024 'Report on Loss-Absorbing Capacity Requirements Implementation in Hong Kong'. The revised chapter supersedes the prior version to reflect the implementation review outcomes and ensure alignment with current regulatory expectations.
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