HKMA Circular on Extended Deadlines for Regulatory Expectations and Licensing FAQs under COVID-19

Our Ref: B1/15C G16/1C 31 March 2020 The Chief Executive All Registered Institutions Dear Sir / Madam, Circular on Extended deadlines for implementation of regulatory expectations and Reminder of order recording requirements under COVID-19 pandemic and Frequently Asked Questions (“FAQs”) on Licensing related matters issued by the Securities and Futures Commission (“SFC”) I am writing to draw your attention to the captioned Circular and FAQs issued by the SFC today, providing regulatory flexibility to help intermediaries cope with COVID-19 challenges while ensuring that market integrity and investor protection principles are maintained. The FAQs address a number of licensing matters taking into account the current COVID-19 situation. Registered Institutions (“RIs”) should make reference to, insofar as applicable, the regulatory expectations and clarifications set out therein in carrying on regulated activities. With regard to the fulfilment of licensing conditions, and Continuous Professional Training (“CPT”) undertakings and requirements, the Hong Kong Monetary Authority (“HKMA”) will adopt the same regulatory flexibility as set out in Questions 1 to 3 of the FAQs to help Relevant Individuals (“ReIs”) (including Executive Officers (“EOs”)) of RIs to fulfil their obligations, namely: (1) For ReIs who are yet to pass the requisite regulatory examinations within the prescribed period which falls due on or before 30 September 2020, they will automatically have an extended period of three calendar months after the original due date to meet the requirement. The extension is also applicable to EOs who are required to pass regulatory examinations within a prescribed period after obtaining the Monetary Authority’s

• 2 - consent. Application for time extension to the HKMA is not required in this respect; (2) ReIs who undertake to complete additional CPT hours on or before 30 September 2020 will be given an extension of three months to fulfil their undertakings. Similarly, application to the HKMA is not required; and (3) ReIs who are unable to fulfil the annual CPT hours by 31 December 2020 are allowed to carry forward any unfulfilled CPT hours for the calendar year of 2020 to 2021. On a separate note, attention of RIs is also drawn to the SFC’s reminder in its Circular to intermediaries of the alternative order receiving and recording options that are available for complying with paragraph 3.9 of the Code of Conduct for Persons Licensed by or Registered with the SFC. If you have any questions on this circular, please contact Ms Gloria Leung on 2878-1509 or Ms Karin Lee on 2878-1604. Yours faithfully, Alan Au Executive Director (Banking Conduct) c.c. SFC (Attn: Ms Julia Leung, Deputy Chief Executive Officer and Executive Director (Intermediaries))