Hong Kong Monetary Authority consults on rules on contractual stays on termination rights in financial contracts
On 22 January 2020, the Hong Kong Monetary Authority (the “HKMA”) published a consultation paper on proposals for making rules relating to contractual stays on termination rights in financial contracts for authorized institutions under the Financial Institutions (Resolution) Ordinance (Cap. 628) (the “FIRO”).
The consultation paper sets out detailed proposals for the stay rules that the HKMA intends to make under the FIRO, which will require that the entities subject to the rules adopt appropriate provisions in certain financial contracts to the effect that the contractual parties agree to be bound by the temporary stay that may be imposed by the HKMA under the FIRO.
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