On 7 January 2014 the Financial Services and Treasury Bureau of the Hong Kong Government (FSTB), in conjunction with the Hong Kong Monetary Authority (HKMA), Securities and Futures Commission (SFC) and the Insurance Authority (IA), issued a first stage consultation regarding the introduction of a resolution regime for financial institutions in Hong Kong (the "Consultation"). The Consultation initiates a discussion as to the regulatory structure and principles that would be required to establish an effective resolution regime for financial institutions in Hong Kong. The HKMA proposals are modelled on the key attributes set out by the Financial Stability Board (FSB) in October 2011 ("Key Attributes"), and identify how the existing regulatory regime in Hong Kong requires augmentation to cope with the failure of a systemically important financial institution.
Many of the proposals made in the Consultation are to be elaborated on in a further consultation due to be carried out later this year, but the Consultation is an informative catalyst for discussion around the implementation of a resolution regime in Hong Kong. The deadline for responding to the Consultation is 6 April 2014.