ENG-2017 — Page 109

4

Financial and Monetary Affairs

Resolution Regime for Financial Institutions

The Financial Institutions (Resolution) Ordinance establishes a cross-sectoral resolution regime for financial institutions in Hong Kong and confers powers on the Monetary Authority, the SFC and the IA as the resolution authorities for within-scope financial institutions under their respective purview. Its main provisions came into operation in July together with a piece of subsidiary legislation on protected arrangements, namely the Financial Institutions (Resolution) (Protected Arrangements) Regulation. The resolution regime is designed to meet the international standards set by the Financial Stability Board in its 'Key Attributes of Effective Resolution Regimes for Financial Institutions.

The resolution authorities will continue to develop resolution planning and the associated standards for financial institutions in order to improve the resolvability of financial institutions such that in the event of a financial institution's non-viability, resolution may take place in an orderly manner. This work would support the operation of the resolution regime in Hong Kong, which would in turn contribute to financial stability.

Investor Education Centre

The Investor Education Centre is dedicated to improving the financial knowledge and capabilities of Hong Kong people by delivering impartial financial information, tools, educational resources and programmes through its consumer brand, The Chin Family.

The centre organised the Hong Kong Money Month campaign between February and March to encourage the public to take action in planning and managing their finances. As the secretariat for the Hong Kong Strategy for Financial Literacy, it coordinates and harnesses the efforts of stakeholders from the government, financial and education sectors and the community to improve financial literacy in Hong Kong.

Financial Dispute Resolution Centre

The Financial Dispute Resolution Centre administers in an independent and impartial manner the Financial Dispute Resolution Scheme to facilitate the resolution of monetary disputes between individual customers and financial institutions by 'mediation first, arbitration next! Following a public consultation on how to enhance its service, the centre will implement measures in phases in 2018 to raise the accessibility and flexibility of its service.

Auditor Regulatory Reform

The international trend is for oversight of the regulation of auditors of public interest entities to be independent of the profession itself. The government, having conducted a public consultation exercise and discussed with stakeholders the detailed proposals, will introduce an amendment bill into the Legislative Council in 2018 to implement the reform.

Money Lenders

The government tackles money lending-related malpractice through enforcement, public education and publicity, advisory services to the public, and stringent licensing conditions on money lenders. The effectiveness of these measures is kept under review.

65