Regulatory Alerts2022-05-25
Added · Updated
Final Report on Focused Review on Incentive Systems of Front Offices in Retail Banks
The Hong Kong Monetary Authority issued this final report on 25 May 2022 to conclude its focused review of incentive systems within the front offices of retail banks. The document outlines regulatory expectations for Authorized Institutions to ensure that remuneration structures align with prudent risk management and long-term sustainability rather than short-term sales targets. It mandates that banks implement robust governance frameworks to monitor and adjust incentive schemes, thereby promoting a healthy corporate culture and protecting customer interests.
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