The law comes into full effect on 8 July 2017.
First text to review and analyze this new Financial Institutions (Resolution) Ordinance (Cap.628) enacted because of the recent 2015 and 2016 amendments to the Securities and Futures Ordinance (Cap.571) allowing the Securities and Futures Commission as well as other financial authorities for the resolution of systemically important financial institutions in the banking, insurance, and securities and futures sectors, as well as certain financial market infrastructures, when a crisis occurs leading to the failure of that monetary fund in an orderly manner without taxpayer exposure to loss from solvency support, while also maintaining the continuity of their vital economic functions.
All 244 Sections and 8 Schedules of the Financial Institutions (Resolution) Ordinance (Cap.628) are reviewed and analyzed. This new text examines the new powers given to the Hong Kong Money Authority (“HKMA”), Insurance Authority (“IA”), and the Securities and Futures Commission (“SFC”) and how might they be applied to help and resolve the issues that arise when a financial institution fails, including the powers to:
(i) impose a write off or conversion of capital instruments issued by authorized financial institutions;
(ii) to resolve a holding company or group company of a within scope entity;and
(iii) to give effect to a resolution action taken by an overseas counterpart.
This is an essential text to all legal practitioners and regulators working in the commercial, financial, and companies sector, as well as all those working in the banking/finance industry, including accountants, money managers, investment brokers, etc.
ADDITIONAL USEFUL TOOLS PROVIDED IN THE TEXT:
1. I-Annex 3: Resolvability Assessments
2. I-Annex 4: Essential Elements of Recovery and Resolution Plans
3. Financial Institutions (Resolution) (Protected Arrangements) Regulation
4. Principles on Loss-absorbing and Recapitalisation Capacity of G-SIBs in Resolution – Total Loss-absorbing Capacity (TLAC) Term Sheet
5. Hong Kong Monetary Authority: Resolution Planning – Core Information Requirements
PROVIEW E-BOOK EXCLUSIVE CONTENT
1. Key Attributes of Effective Resolution Regimes for Financial Institutions
2. Regulations on Protected Arrangements: Consultation Paper
