Enhanced Competency Framework on Fintech

Our Ref: B9/166C 3 December 2021 The Chief Executive All Authorized Institutions Dear Sir/Madam, Enhanced Competency Framework on Fintech I am pleased to announce the launch of the Enhanced Competency Framework on Fintech (ECF-Fintech). The ECF-Fintech is a collaborative effort of the HKMA, the Hong Kong Institute of Bankers (HKIB) and the banking sector in establishing a set of common and transparent competency standards for developing a strong Fintech talent pipeline and enhancing the professional competence of existing banking practitioners who are performing functions that involve technological innovation for financial services in Hong Kong’s banking industry. This framework, which includes Regulatory Technology (Regtech) as a sub-set of Fintech, will facilitate banking practitioners to acquire relevant Fintech knowledge and develop professional competencies in the Fintech area more effectively. Details of the ECF-Fintech, 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, authorized institutions (AIs) are strongly encouraged to adopt the ECF￾Fintech 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.

• 2 - 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 assistance in their applications for grandfathering and certification, and fulfilment of CPD training under the ECF-Fintech. The HKIB is the administrator of the ECF-Fintech, whose major role includes handling certification and grandfathering applications, administering the examinations and CPD requirements, and maintaining a public register of qualified certification holders. The HKIB is also working with relevant universities to offer the training programme and examination under the ECF￾Fintech. AIs may direct any enquiries regarding certification, grandfathering, training and other related matters to Mr Henry Lee at 2190 7028 / 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)