Regulatory Alerts2016-11-30
Added · Updated
Engagement of Intermediaries by Authorized Institutions: Annex 1 Measures to Enhance Customer Protection and Address Reputation Risks
The Hong Kong Monetary Authority issued this circular to require Authorized Institutions to implement specific measures that enhance customer protection and mitigate reputation risks during loan application processes involving intermediaries. The document mandates that AIs establish robust oversight frameworks to ensure intermediaries adhere to strict standards of conduct and transparency when engaging with customers. These requirements aim to safeguard consumer interests and maintain the integrity of the banking sector by addressing potential conflicts of interest and operational failures associated with third-party loan facilitators.