On 27 Nov 2025, the HKMA issued revised standard LAC disclosure templates (TLAC1 and TLAC1(A)) to align with recent updates to Template CC1, enhancing clarity on fair value measurement for instruments. The revised templates will take effect on 1 January 2026, requiring resolution entities and material subsidiaries to adopt them for all subsequent disclosures.
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Introduction
On 27 Nov 2025, the Hong Kong Monetary Authority (HKMA) issued revised standard LAC disclosure templates (Template TLAC1 and Template TLAC1(A)) under the Financial Institutions (Resolution) (Loss-absorbing Capacity Requirements - Banking Sector) Rules, following consultation with industry associations to align with recent updates to the Template CC1 under the Banking (Disclosure) Rules.
Revised Disclosure Templates
The HKMA has revised the standard LAC disclosure templates to incorporate consequential updates arising from the corresponding changes to the revised Template CC1. These revisions specifically enhance clarity regarding the measurement approach for instruments held at fair value, ensuring consistency between the LAC disclosure requirements and the broader disclosure framework. The revised templates replace the current versions and are required for use by resolution entities (Template TLAC1) and material subsidiaries (Template TLAC1(A)).
Implementation Timeline
The revised templates will take effect on 1 January 2026. Resolution entities and material subsidiaries must utilise these updated templates for all disclosures pertaining to reporting periods ending on or after this effective date. The HKMA has provided marked-up drafts highlighting changes against current templates (Annex 2) and the full set of templates is accessible via the HKMA website and Banking Regulatory Document Repository.
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