Clifford Chance

SFC introduces manager-in-charge regime to heighten senior management accountability

19 December 2016

On 16 December 2016, the Securities and Futures Commission (SFC) announced it was taking steps to enhance the senior management regime of licensed corporations. These requirements seek to promote senior individuals' awareness of their regulatory obligations and accountability for misconduct that falls within their area of responsibility.

In its "Circular to Licensed Corporations Regarding Measures for Augmenting the Accountability of Senior Management" (Circular), the SFC provides guidance on who should be regarded as the senior management of a licensed corporation. It identifies eight Core Functions – functions identified as instrumental to the operations of licensed corporations - for which licensed corporations must appoint at least one fit and proper person to be the manager-in-charge (MIC).

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