Enhanced Competency Framework on Compliance

Our Ref: B9/166C 27 September 2022 The Chief Executive All Authorized Institutions Dear Sir/Madam, Enhanced Competency Framework on Compliance I am pleased to announce the launch of the Enhanced Competency Framework on Compliance (ECF-Compliance). The ECF-Compliance is a collaborative effort of the HKMA, the Hong Kong Institute of Bankers (HKIB) and the banking industry in establishing a set of common and transparent competency standards for raising the professional competence of relevant practitioners working in the compliance function of authorized institutions (AIs). This framework will facilitate talent development and help enhance the professional competencies of existing practitioners performing the compliance function more effectively. Details of the ECF-Compliance, including its scope of application, competency standards, qualification structure, modular exemption, certification and grandfathering arrangements, as well as continuing professional development (CPD) requirements are set out in the Guide attached to this letter. As the Supervisory Policy Manual module CG-6 “Competence and Ethical Behaviour” emphasises the importance of ensuring continuing competence of staff members, AIs are strongly encouraged to adopt the ECF-Compliance as part of their overall efforts in supporting relevant employees’ on-going professional development. The HKMA expects AIs to adopt appropriate measures to monitor and maintain the competence levels of their staff. Apart from supporting their staff to attend trainings and examinations that meet the ECF certification, AIs are also advised to keep proper records of the relevant training and qualification of their staff and to provide them with necessary

• 2 - assistance in their applications for grandfathering and certification, and fulfilment of CPD training under the ECF-Compliance. The HKIB is the administrator of the ECF-Compliance, whose major roles include handling certification and grandfathering applications, providing the training programmes, administering the examinations and CPD requirements, and maintaining a public register of qualified certification holders. AIs may direct any enquiries regarding certification, grandfathering, training and other related matters to Mr Ivan Li at 2153 7813 / 2153 7800 of the HKIB. Meanwhile, if there are any enquiries concerning this circular, please feel free to contact Ms Ivy Yong at 2878 8495 or Miss Rita Kong at 2878 8303. Yours faithfully, Daryl Ho Executive Director (Banking Policy) Encl cc: FSTB (Attn: Mr Justin To) HKIB (Attn: Ms Carrie Leung)