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Markets and Securities Services |
China
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localisation of Core Functions in Hong Kong for
licensed corporations that are part of a wider
international group.
The key dates for implementation of the MIC
regime are captured in the graphic above, and a
more detailed timeline is attached at the end of
this article.
Summary of actions required
The actions each licensed corporation needs to
take include the following.
By 17 July 2017, each licensed corporation should:
• Identify the individuals who are or will be
MICs, brief them on the MIC regime and their
obligations, and get their acknowledgement
of their appointment as MICs.
• Prepare descriptions of the roles of each MIC and
a structure chart for the licensed corporation,
including each MIC’s reporting lines.
• Prepare a formal board paper (a management
structure paper) setting out the management
structure of the licensed corporation, the roles,
responsibilities, accountability, and reporting
lines of its senior management personnel.
• Prepare relevant SFC forms.
• Have the board of directors approve the
management structure paper, the appointment
of the MICs, the roles of each MIC, the structure
chart and reporting lines, and the submission of
information about the MICs to the SFC.
• Submit information about the MICs to the
SFC, including the structure chart and
completed SFC forms.
• And put in place a compliance process to
monitor changes relating to MICs and to
report such changes to the SFC.
By 16 October 2017, each licensed corporation
should:
• If the MIC responsible for overall management
oversight or a key business line is not currently
an RO, prepare and submit an application to
the SFC for that person to become an RO.
More on the MIC regime
Identifying MICs
The scope of the Core Functions is described in
detail within the Circular. A licensed corporation
must identify and appoint an individual (either
alone or with others) to take up principal
responsibility for managing each Core Function.
One person can be an MIC for more than one
Core Function. An MIC may be located in or
outside Hong Kong. An MIC may also be an RO
and/or a director of the licensed corporation or
an employee of a group company. The SFC also
anticipates that in some circumstances two or
more people may be appointed on a joint basis
as MICs for a single Core Function.
SFC accepts MIC information
and management organisational
charts from all licensed
corporations and new corporate
license applications.
Deadline set for licensed
corporations to submit MIC
information and management
organisational charts.
Deadline set to submit
applications to the SFC
for MICs who need to be
approved as ROs.
18 April 2017
17 July 2017
16 October 2017