Supervisory Policy Manual CG-4 and SA-2: Overseas Banking Subsidiaries and Outsourcing

Our Ref : Circulars 28 Dec 2001 Supervisory Policy Manual ("SPM") CG-4: "Establishment of Overseas Banking Subsidiaries: §51A" SA-2: "Outsourcing" B1/15C B1/21C 28 December 2001 The Chief Executive All authorized institutions Dear Sir/Madam, Supervisory Policy Manual ("SPM") CG-4: "Establishment of Overseas Banking Subsidiaries: §51A" SA-2: "Outsourcing" I am pleased to inform you that, following consultation with the industry, the Monetary Authority is issuing two modules of the SPM today. The module on "Establishment of Overseas Banking Subsidiaries: §51A", a statutory guideline issued under section §7(3) of the Banking Ordinance, applies only to locally incorporated authorized institutions ("AIs") while the module on "Outsourcing" is issued as a guidance note and applies to all AIs. We are grateful for the input provided on these modules by the two industry Associations and the O￾ce of the Privacy Commissioner for Personal Data in respect of the issue of data privacy in the latter module. The modules will take immediate effect. The HKMA expects AIs to make every effort to comply with the minimum requirements stipulated or follow the best practices recommended, where applicable to them, in these modules. The HKMA will monitor AIs' compliance with the modules through regular off-site reviews and on-site examinations. On-line access to the above modules is available under the icon of "Supervisory Policy Manual" in the HKMA's public (http://www.info.gov.hk/hkma/eng/bank/spma/index.htm) and private (http://www.hk￾n.net) web-sites. Should you have any questions relating to the Manual or the individual modules, please feel free to contact either me or Ms Michelle Quek on 2878-8218.

c.c. Yours faithfully Simon Topping Executive Director (Banking Policy) The Chairman, Hong Kong Association of Banks The Chairman, The Deposit-taking Companies Association Mr Christopher J Roberts, O￾ce of the Privacy Commissioner forPersonal Data Last revision date : 07 September 2011