7 July 2016
30 months after the first public consultation of a resolution regime for financial institutions in Hong Kong, the Government published the much anticipated Financial Institutions (Resolution) Ordinance (the "Ordinance") in the Gazette on 30 June 2016.
Given Hong Kong's status as an international financial centre and Financial Stability Board ("FSB") member jurisdiction, the Government originally planned to enact legislation before the end 2015 deadline set by the FSB to meet its "Key Attributes of Effective Resolution Regimes for Financial Institutions"1 ("KAs"). An effective resolution regime is also much needed to complement the other prudential regulatory mechanisms adopted by Hong Kong to strengthen the resilience of its financial system.
(Reform) too big to fail? Hong Kong puts in place resolution regime to meet international standards