SFC introduces new “Managers in Charge” regime to augment accountability of senior management of licensed corporations
SFC introduces new “Managers in Charge” regime to augment accountability of senior management of licensed corporations.
On 16 December 2016, the SFC issued a Circular and two Annexes (the “Circular”) aimed at augmenting the accountability of senior management of licensed corporations and introducing a new “Managers in Charge” regime (the “MICR”). The Circular is accompanied by 41 FAQs.
While the SFC has been informally consulting on the MICR in recent weeks, the Circular and FAQs are the first public statements of its intentions. There will be no formal consultation on the new regime; the SFC does not believe that any legislative changes are necessary to facilitate the MICR on the basis that the measures set out in their Circular are, in its view, consistent with existing provisions of the SFO, subsidiary legislation and related codes and guidelines.
The measures proposed by the Circular are very similar to those proposed in the informal consultation, although there is an increased focus on the role of the board of a licensed corporation, and a new expectation that it approves a document setting out the management structure of the corporation.
We have prepared a detailed client briefing on the new regime, which can be found here. The briefing goes through the key requirements of the MICR, the key deliverables, the challenges we see with implementation and suggests five actions which we think all affected organisations should be taking now.