09 Jan 2009, David Benyon, Operational Risk & Regulation
HONG KONG - The Hong Kong Monetary Authority (HKMA) has appealed to banks and other investment firms to study its January 8 report on issues regarding the distribution of structured products linked to Lehman Brothers and its many subsidiaries. The Hong Kong regulator issued a letter to firms urging their fast implementation of the report's recommendations.
The regulator has issued 19 recommendations aimed at strengthening the existing regulatory regime and investor-protection framework. It has created a timetable for seven of these, and firms are expected to submit a plan for implementing a further two points by March 31.
"The HKMA has already asked registered institutions (RI) to carry out a number of the recommendations in its previous circulars to RIs," said an HKMA spokesperson. "We expect the other recommendations in the letter to be implemented as soon as practicable, to improve the existing regulatory regime and better protect investors."