SFC announces full roll-out of Manager-In-Charge regime


In January this year, we wrote about upcoming changes to the Manager-In-Charge Regime. It was announced then that Managers-In-Charge (MIC) of eight core functions should have applied for approval to become Responsible Officers (ROs) by 16 October 2017. In addition, licensed corporations and corporate licence applicants were required to submit up-to-date management structure information and organisational charts to the SFC in the same time frame.

The Securities and Futures Commission announced yesterday that the Manager-In-Charge regime is now in full effect. During the six-month transition period, from April to mid-October 2017, ten thousand individuals were appointed as MICs responsible for the following core functions:

  1. Overall Management Oversight
  2. Key Business Line
  3. Operational Control and Review
  4. Risk Management
  5. Finance and Accounting
  6. Information Technology
  7. Compliance
  8. Anti-Money Laundering and Counter-Terrorist Financing

Approximately 40% of those nominated are not licensed persons, as they are primarily responsible for managing operations or control functions.

Any Licensed Corporation which has not already ensured full compliance with the MIC regime requirements should act very quickly to remedy their position and minimise the risk of disciplinary action. An in-depth presentation from the SFC on the Manager-In-Charge regime is available at this link.

Now that the regime has been fully implemented, the Hong Kong Monetary Authority (HKMA) has also now requested that all registered institutions submit up-to-date management structure information and organisational charts to both the HKMA and the SFC from 16 March to 16 April 2018.

Russell Bennett

The above is not intended to be relied on as legal advice and specific legal advice should be sought at all times in relation to the above.

For more information on SFO regulated activities and licence requirements, please contact:

Russell Bennett
Partner | Email

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.