The Financial Institutions (Resolution) Ordinance (the Ordinance) was passed by the Legislative Council on 22 June 2016 and gazetted on 30 June 2016. The Ordinance aims to bring Hong Kong in line with the latest international standards, being the ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ set by the Financial Stability Board, and to establish an effective cross-sector regime for the resolution of systemically important financial institutions.
The Ordinance has not yet come into operation. It will commence operation on a date to be appointed by the Secretary for Financial Services and the Treasury pending the passing of certain subsidiary legislation under the Ordinance by the Legislative Council. In the meantime, the Government, together with the designated resolution authorities (i.e. the Hong Kong Monetary Authority, the Securities and Futures Commission and the Insurance Authority) (RAs), will work closely with relevant stakeholders in the banking, securities and insurance sectors to formulate regulations, rules and codes of practice. Financial institutions should also look out for guidelines or updates to be published on the RAs’ websites regarding the operation of the regime and the implications of resolution for relevant stakeholders.
A copy of the Ordinance can be accessed here.