Reggie has been keeping track of his diary – with dates… regulatory change dates! We are proud to bring you this service where we highlight from time to time some relevant and important dates that we come across from our news partner Mondo Visione, and also courtesy of Regulation Asia’s news service. We hope you will find it useful.
a) Hong Kong Monetary Authority: Mandatory Reference Checking Scheme
Following a one-year transitional period, Phase 1 of the Mandatory Reference Checking (MRC) Scheme became effective on 2 May 2023.
The Guidelines issued by the Hong Kong Association of Banks (HKAB) and DTC Association will, in Phase 1, apply to all Authorised Institutions (AIs) recruiting directors, chief executives, alternate chief executives and managers as defined under the Banking Ordinance, as well as executive officers and responsible officers for securities, insurance and Mandatory Provident Fund (MPF) regulated activities. In a nutshell, potential employers should seek references for conduct-related information covering seven years prior to the job application, and reference-providing AIs should respond within one month of the MRC request using a standard template.
While the MRC Scheme is not introduced as a supervisory requirement, the HKMA attaches great importance to the effective implementation of the Scheme and may initiate follow-up actions with the AIs concerned as appropriate.
b) Securities and Futures Commission: Updated AML / CFT Guidelines
Securities and Futures Commission (SFC) has revised its guidelines for licensed corporations and associated entities which will be effective on 1 June 2023.
c) Securities and Futures Commission: Licence for Virtual Asset Service Providers (VASP)
The Guidelines to licensed trading platform operators to service retail investors will become effective on 1 June 2023.
Consultation Conclusions (See Chapter 12 Appendix A)
d) Monetary Authority of Singapore: Business Continuity Management Framework
FIs are expected to meet the Guidelines by 5 June 2023 (12 months following its issuance). The firm’s Business Continuity Management (BCM) audit plan should also be established by 5 June 2023; and a first audit conducted within 24 months of the issuance the Guidelines (i.e. by 5 June 2024).
Reglex can support our users with the implementation of these Guidelines. Click here for our shameless plugging of our BCM template.
e) Financial Conduct Authority: USD LIBOR
The U.S. Dollar LIBOR panel will cease at end-June 2023. With less than 30 days remaining, the Alternative Reference Rates Committee (ARRC) urges market participants with LIBOR exposures to complete their transition efforts now, and to draw upon the numerous resources and tools that have been made available over the past several years to facilitate this.
This step is critical towards the transition to risk-free reference rates (RFRs).
Relevant to UK supervised entities and IBORs which use USD LIBOR settings (e.g. MIFOR in India, SOR in SG, THBFIX in Thailand, PHIREF in Philippine) as they too will cease on the same day as USD LIBOR:
| Dates | |
| Overnight and 12-Month U.S. dollar LIBOR | 30 June 2023 |
| 1-, 3- and 6-Month U.S. dollar LIBOR | Will be changed to a synthetic methodology from 3 July 2023 (legacy contracts except for cleared derivatives)Publication will cease on 30 September 2024 |
In Singapore, the first multilateral conversion, for USD/SGD swaps, was completed by eleven market participants, whilst a second conversion was performed by twenty-one participants ahead of CCP conversion for the SGD SOR benchmark. DBS, UOB and OCBC has been actively working with OSTRRA to convert their cross currency swaps (CCS) into SORAs. OSTRRA’s service is also available to customers with legacy benchmark exposure in CCS referencing other indices subject to cessation, including those in MXN, PLN, ZAR and CAD.
LIBOR Web-page:
