Clifford Chance
(Reform) too big to fail? Second round consultation on resolution regime for financial institutions in Hong Kong launched
27 January 2015
In setting out the conclusions reached by the authorities after the first stage of consultation, this second consultation paper provides an overview of what the new regime will look like. It also seeks input on a number of specific areas, whilst explicitly reserving several key issues for a third, likely shorter, stage of consultation later this year. The stated intention remains to put legislation before Hong Kong's Legislative Council by the end of 2015: the timing is tight but important, as this is the deadline set by the Financial Stability Board (FSB) for local implementation of its Key Attributes by its member states, of which Hong Kong is one.
In this briefing we look at what can be deduced so far about the likely form and scope of the new regime. We also provide an overview of the topics which are proposed for discussion now and touch upon those which have been reserved for the third consultation. Throughout, specialists from our cross-practice Financial Institution Recovery and Resolution Team provide their insights into the potential impact of these proposals for both global institutions and local banks.
