October 2018
First introduced in 2010, the Guideline on a Sound Remuneration System issued by the Hong Kong Monetary Authority (CG-5) reflects the Principles for Sound Compensation Practices and the Implementation Standards issued by the Financial Stability Board to ensure that compensation practices in the financial industry are consistent with effective risk management. The Guideline focuses on the governance and control arrangements for remuneration systems of authorized institutions, meaning all banks, restricted licence banks and deposit-taking companies. Playing a significant role in strengthening market discipline, the Guideline requires each of these institutions to review the implementation of its remuneration policy at least annually.
Our firm delivered a seminar in October 2018 to bank officers on the Guideline and offered practical advice on its implementation in various real-life examples.
(Photograph) Our partner, Walter Lee and associate, Clara Wong of Litigation and Dispute Resolution Department delivered a seminar to bank officers at Nanyang Commercial Bank on the Guideline on a Sound Remuneration System.
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