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 to conclude its focused review of incentive systems within the front offices of retail banks. The document outlines specific expectations for authorized institutions to align compensation structures with prudent risk management and long-term sustainability. It mandates that banks implement robust governance frameworks to ensure that incentive schemes do not encourage excessive risk-taking or undermine ethical conduct.
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