Hong Kong’s SFC Launches Key Risk Indicator Platform

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The Securities and Futures Commission (SFC) has launched a Key Risk Indicator (KRI) platform to collect and analyse KRI data from certain licensed corporations (LCs). 

According to the release, the platform supplements the SFC’s monitoring tools by enhancing its information gathering and analytical capabilities to better identify and manage both existing and emerging risks. This facilitates the SFC’s supervision of global firms which are exposed to the changing dynamics of global markets and helps address issues identified by the SFC.

The release said: “Initially, 22 global financial institutions which are considered as systemically important are in-scope for the purposes of this platform.”

“LCs from the in-scope global financial institutions are required to complete a KRI survey with data relating to their business operations (eg, financial information), conduct issues and prudential risk exposures on a monthly, quarterly and yearly basis,” it continued. 

Additionally, the survey covers all the regulated activities conducted by the participating LCs and their licensed representatives in Hong Kong, regardless of where the risk positions resulting from the associated regulated activities are ultimately booked.

The first submission of data should be made on or before 31 January 2020 for the reporting period ending 31 December 2019. The KRI survey should be submitted electronically through the SFC website using the “e-Submission Services” feature (wings.sfc.hk), where demonstration video and user guide have also been provided.

“All the in-scope LCs of global financial institutions took part in pre-launch soft consultations and pilot tests of the KRI platform. The SFC will refine the platform from time to time and may consider expanding the scope of data collection and including additional LCs to enhance its regulatory oversight,” the release closed.

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Last updated on

September 3rd 2019, 11:45 am

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