The second stage of a three-month public consultation on establishing an effective resolution regime for financial institutions was launched today.
This stage seeks views on further details on the resolution options and powers proposed in the first consultation paper; the governance arrangements and especially the approach to designating resolution authorities; and safeguards including a 'no creditor worse off than in liquidation' compensation mechanism.
The consultation is jointly launched by the Government, Monetary Authority, Securities & Futures Commission and Insurance Authority. The deadline for submissions is April 20.
During the first stage that was held in the first few months of last year, more than 30 submissions were received. The majority of respondents indicated that the proposed reform was important in both the local and international contexts.
The Government and financial regulators also met with Legislative Council members, trade bodies and professional associations during the consultation period.
As work is continuing at the international level to provide guidance on the implementation of certain aspects of the new standards, there may be a need to carry out a third, but shorter consultation later this year.
Subject to the outcomes of these public consultations, the Government will seek to introduce legislative proposals into the Legislative Council by the end of 2015.
