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Markets and Securities Services |
China
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While the SFC does not mandate any particular
structure, it generally expects that an MIC should:
• Report directly to either the board of
directors of the licensed corporation or to the
MIC who assumes the overall management
oversight function.
• And be accountable for the performance or
achievement of business objectives set by the
board of directors of the licensed corporation
or by the MIC who assumes the overall
management oversight function.
Licensed corporations will need to consider
whether current job descriptions and reporting
lines are consistent with the MIC regime,
and may need to revise their organisational
structure accordingly. That may mean, for
example, revising current job descriptions
to give individuals sufficient authority to act
as MICs and/or additional reporting lines
to the board of directors of the licensed
corporation or to the MIC who assumes the
overall management oversight function. For
international groups, it may also mean adding
employees in Hong Kong to act as an MIC.
When reviewing its organisational structure,
a licensed corporation should also keep in
mind the segregation requirements under the
Management, Supervision and Internal Control
Guidelines, which require licensed corporations
to segregate front office functions from back-
office functions.
4
There is no need to change the job titles of
individuals to match the Core Functions.
Ensuring board approval of MICs
Once a licensed corporation has identified its
MICs and finalised its organisational chart, the
Circular requires that the board of directors of
the licensed corporation:
• Approve the management structure paper.
• Approve the organisational chart.
• Approve the appointment of the MICs.
• And ensure each MIC has acknowledged his
or her appointment as an MIC and the Core
Function(s) for which he or she is principally
responsible.
The MIC Regime Timeline
Licensed corporations identify MICs and prepare MIC information
and organisational charts for submission
Licensed corporations can submit responsible officer applications for MICs
of overall management oversight and key business line functions
Licensed corporations submit MIC
information and organisational charts
SFC organises workshops to introduce new
features of the SFC online portal for submitting
MIC information and organisational charts
SFC collects MIC information and
organisational charts
Q1
2017
18 Apr
2017
17 July
2017
16 Oct
2017
(Commencement
date for MIC
filing)
(Deadline for
MIC filing)
(Deadline to submit
responsible officer
applications)