Hong Kong – Checklist For MIC Regime: What’s Next After Identifying The MICs For The 8+ Core Functions?

 

3 April, 2017

 

 

After the SFC published the circular and FAQs on the Manager-In-Charge of Core Functions (MIC) regime on 16 December 2016, and we issued our Deacons client alerts on 22 December 2016 and 26 January 2017, many clients have focussed on identifying who the MIC should be for each of the eight (or more if there's more than one key business line) core functions.

 

There are however other things licensed companies need to do before submitting the MIC information to the SFC by 17 July 2017 and the following checklist should help firms get organised before the submission deadline.

 

• Has the MIC for each of the eight (plus) core functions been identified?

 

• Is each of the nominated MICs qualified to act as MIC of that core function?

 

• Is each of the nominated MICs "fit and proper"?

 

• Has the board been notified of the MIC regime?

 

• Has each of the nominated MICs been informed about the MIC regime and what the role of MIC entails?

 

• Has each nominated MIC acknowledged their appointment(s)?

 

• Do you have full name, ID document, job title and place of residence for each MIC?

 

• Does the Overall Management Oversight (OMO) MIC need to apply for an SFC licence (or does s/he have one already)?

 

• Do any of the Key Business Line (KBL) MICs need to be approved as a responsible officer (RO)?

 

• Do the OMO and KBL MICs understand the role and responsibilities of an RO?

 

• Will the new RO MICs be ready to kick-start the RO licence application process by the submission deadline of 16 October 2017?

 

• Is there a job description (covering role, responsibilities, authority, accountability and reporting line) for each MIC and for each other member of senior management (e.g. ROs who are not MICs, Head of Legal, Head of HR)?

 

• Have you checked whether the MICs’ employment agreements need to be tweaked in light of the MIC regime?

 

• Does the organisation chart include:

the board of directors
all business and operational units
all key human resources with reporting line
the MIC for each of the eight (plus) core functions
job title of the person to whom each MIC reports
job titles of the MICs’ reports

 

• Is there a management structure paper including role, responsibilities, accountabilities, authority, and reporting line for each MIC and other members of senior management?

 

• Has the board noted that all the MICs have acknowledged their appointments and formally approved the following:

management structure paper
appointment of the MICs
structure chart

 

The revised Supplement 8 and the new Supplement 8A were published in the Gazette today and should be available for downloading from the SFC’s website soon. The updated online portal forms were also published in the Gazette today. The new portal forms should be accessible on 18 April 2017 after the SFC’s system enhancement on 13 April 2017. For the purpose of submitting the MIC information, existing licensed companies should only submit the MIC information and organisational chart via the SFC online portal and should not use the paper forms. 

 

As a reminder, the key dates for the implementation of the new regime are:

 

• 18 April 2017: The SFC will start to accept MIC information and management organisational charts from all licensed corporations and new corporate licence applicants
• 17 July 2017: Deadline for licensed corporations to have submitted these details
• 16 October 2017: Deadline for MICs who need to be approved as ROs to submit applications

For more information, please contact:

 

Jeremy Lam, Partner, Deacons

jeremy.lam@deacons.com.hk