Further to the sixth issue of the Regtech Adoption Practice Guide published in April this year, the HKMA issued a circular (“Circular”) in relation to the seventh issue of the Regtech Adoption Practice Guide (“Guide”) on 18 July 2022.
The Guide focuses on the Regtech solutions used in Third-Party Monitoring and Risk Management (“TPRM”). There has been significant growth in the reliance by businesses on third-parties in recent years. TPRM Regtech solutions can help to ensure the risks associated with third-parties are properly managed and allow the business to keep functioning efficiently in a stable environment.
The Guide explains how Regtech solutions can be used to support TPRM and provides practical implementation guidance to banks on the adoption of Regtech solutions for TPRM. Banks are reminded that as a pre-requisite for Regtech adoption, banks should have a clear understanding of their operating model and the capabilities of their people. There needs to be a clear articulation of the TPRM mandate across different departments and functions. Lastly, the Guide offers advice on how banks can use TPRM Regtech solutions to address the risks and challenges associated with TPRM.
For more information on the Circular, please see here. To access a full copy of the Guide, please see here.
For further information, please contact:
Simon Deane, Deacons
simon.deane@deacons.com
