Regulatory Alerts2021-12-22
Added · Updated
Code of Practice Chapter ST-1 on Contractual Recognition of Suspension of Termination Rights
The Hong Kong Monetary Authority issued Code of Practice Chapter ST-1 under the Financial Institutions (Resolution) Ordinance to establish standards for the contractual recognition of suspension of termination rights. This regulation requires authorized institutions to incorporate specific contractual provisions that allow for the temporary suspension of termination rights during resolution proceedings. The measure aims to support financial stability by ensuring that critical contracts remain intact to facilitate the orderly resolution of failing financial institutions.
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