Code of Practice Chapter ST-1 on Contractual Recognition of Suspension of Termination Rights issued under the Financial Institutions (Resolution) Ordinance

Resolution Office 處 置機制 辦 公 室 Our Ref: B9/124/2/1C 22 December 2021 The Chief Executive All Authorized Institutions Dear Sir / Madam, Code of Practice Chapter ST-1 on Contractual Recognition of Suspension of Termination Rights issued under the Financial Institutions (Resolution) Ordinance (Cap. 628) (“FIRO”) I am writing to inform you that, following consultation with the industry, the Monetary Authority (“MA”) is issuing today ST-1 “Resolution Planning – Contractual Recognition of Suspension of Termination Rights”, a new chapter of the code of practice pursuant to section 196 of the FIRO. The chapter provides guidance on the operation of certain provisions in the Financial Institutions (Resolution) (Contractual Recognition of Suspension of Termination Rights – Banking Sector) Rules (Cap. 628C). Comments received during the industry consultation have been addressed as appropriate. On-line access to the chapter is available under the “Code of Practice” icon on the HKMA’s public website (https://www.hkma.gov.hk/eng/) and the Supervisory Communication Website (https://www.stet.iclnet.hk).

2 Should you have any questions regarding the chapter, please contact Ms Helen Chan at hkychan@hkma.gov.hk. Yours faithfully, Elizabeth Coupe Head (Resolution Office) Encl cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Ms Candy Lau)