Regulatory Alerts2016-06-30
Added · Updated
Supervisory Policy Manual SPM CR-G-12 Credit Risk Transfer Activities
The Hong Kong Monetary Authority issued Supervisory Policy Manual SPM CR-G-12 to update credit risk transfer guidance by incorporating international standards and replacing obsolete modules on credit derivatives and asset securitisation. The document establishes key elements for effective management of credit risk transfer activities, including specific risk management topics and the regulator's supervisory approach based on the proportionality principle. It further mandates that authorized institutions generally refrain from investing in securitisation transactions where the originator has not disclosed compliance with applicable risk retention requirements.