Supervisory Policy Manual CS-1: Group-wide Approach to Supervision of Locally Incorporated Authorized Institutions

Banking Policy Department Our Ref: B1/15C B1/21C 20 July 2021 The Chief Executive All locally incorporated authorized institutions Dear Sir/Madam, Supervisory Policy Manual (SPM): CS-1 “Group-wide Approach to Supervision of Locally Incorporated Authorized Institutions” I am writing to inform you that, following consultation with the two industry Associations, the Monetary Authority is issuing a revised version of the above SPM module as a guidance note today. The SPM module was revised primarily to: • reflect the current supervisory approach and practices adopted by the HKMA in relation to a locally incorporated authorized institution where it forms part of a banking, financial or commercial group; • incorporate relevant principles in international standards concerning the supervision of financial conglomerates; and • cater for consequential changes arising from amendments to the Banking Ordinance, relevant rules made under the Ordinance and supervisory guidelines. On-line access to the module is available under the icon for “Supervisory Policy Manual” on the HKMA’s public website (https://www.hkma.gov.hk/eng/) and its private website (https://www.stet.iclnet.hk).

2 Should you have any questions relating to the SPM module, please feel free to contact Mr Andy Cheung at 2878-1022. Yours faithfully, Daryl Ho Executive Director (Banking Policy) Encl cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Ms Eureka Cheung)