On 13 Dec 2024, the HKMA issued revised SPM Module CA-S-10 'Fair Value Practices', replacing the prior 'Financial Instrument Fair Value Practices' module. The revision aligns supervisory requirements with CAP50's prudent valuation guidance and updated accounting standards for fair value measurement, incorporating additional policy clarifications to strengthen regulatory consistency.
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Introduction
On 13 Dec 2024, the Hong Kong Monetary Authority (HKMA) issued a revised version of the Supervisory Policy Manual (SPM) Module CA-S-10 'Fair Value Practices', replacing the previous module titled 'Financial Instrument Fair Value Practices' following consultation with industry associations.
Key Regulatory Updates
The revision primarily aligns the module with the 'Prudent valuation guidance' under CAP50 of the Consolidated Basel Framework and the latest accounting standards for fair value measurement, while incorporating additional policy clarifications to enhance supervisory consistency. The updated module supersedes the prior version effective upon publication, with online access available via the HKMA's public and Supervisory Communication websites.
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