On July 3, 2024, SFC issued a circular to licensed corporations -

Financial resources management and compliance with the Securities and Futures (Financial Resources) Rules

Below are the mainpoints of this circular. You may reference the summary to quickly understand the circular and update your company's relevant policy.

10.    It is an existing requirement that each LC should designate at least one RO or MIC responsible for each of the following areas: (a) ensuring the availability of the financial resources needed for the proper performance of the LC’s business activities; and (b) full compliance with the financial resources requirements under the FRR at all times6.

11. Accordingly, an LC’s senior management should designate at least one RO or MIC7 to be responsible for overseeing the adequacy of financial resources and FRR compliance. The designated RO or MIC should have the following responsibilities8:

(a) overseeing the calculation, monitoring and reporting of liquid capital;

(b) establishing and enforcing policies, procedures and internal controls to ensure the adequacy of financial resources and compliance with the FRR. These include setting up alerts based on liquid capital levels and material drops in ELC, which would require the attention of senior management for further escalation; and

(c) identifying the root cause of any FRR compliance failure and implementing appropriate remedial measures promptly. 

13. the FRR returns of an LC must be signed by its RO or officer approved by the SFC (each a Signer). The Signer must certify, in the declaration form of the FRR return, that the information provided in the FRR return is true and correct to the best of his/her knowledge. To discharge this duty, the Signer is expected to have verified the liquid capital computation against relevant records, conducted necessary inquiries, and assessed whether the LC’s systems and procedures can produce reliable, up-to-date and accurate financial information. It is expected that the FRR return be signed by an RO or MIC in normal circumstances. It is important to note that provision of false or misleading information to the SFC may constitute a criminal offence under the SFO.

14. According to the Internal Control Guidelines, policies and procedures shall be established and maintained to ensure the firm’s compliance with all applicable legal and regulatory requirements9. Accordingly, an LC should implement effective controls for FRR compliance10 in the following areas, among other things:

(a) sound accounting policies and procedures11, including month-end and year-end closing procedures, for timely and proper recognition of revenues, accruals and provisions;

(b) a maker and checker mechanism for the calculation, monitoring and reporting of liquid capital;

(c) effective processes for ongoing liquid capital monitoring commensurate with the nature, scope, size and complexity of the LC’s business activities and operations;

(d) regular liquid capital projections12 for preparing and maintaining a sufficient liquid capital buffer;

(e) a liquidity management framework for handling thin ELC situations13 that entails effective alerts, relevant mitigation measures14 and escalation procedures with clear steps and timelines; 

(f) procedures for ensuring compliance with all relevant notification requirements; and;

(g) where applicable, clear allocation of scope, roles and responsibilities between the LC and its external service providers regarding outsourced accounting and FRR compliance functions15.

19. Use Appendix B to report accident.

NOTE: THE SUMMARY FOR APPENDIX A is not included here.

10.根据现行规定，各持牌法团应指定至少一名负责人员或核心职能主管负责以下各范畴：(a) 确保备有所需的财政资源以便适当地进行该法团的业务活动；及(b) 时刻全面遵守《财政资源规则》对财政资源的规定⁶。

11.因此，持牌法团的高级管理层应指定至少一名负责人员或核心职能主管⁷，负责监督财政资源的充裕性及《财政资源规则》的合规情况。该指定负责人员或核心职能主管应具有以下责任⁸：

(a) 监督速动资金的计算、监察和汇报工作；

(b) 制定并执行政策、程序和内部监控措施，以确保财政资源的充裕性及遵守《财政资源规则》，包括针对速动资金水平及速动资金盈余显著下降的情况设置警报，提请高级管理层注意并作进一步上报；及

(c) 识别违反《财政资源规则》的根本原因，并实施适当的补救措施。

13.申报表须由该法团的负责人员或获证监会核准的高级人员（各为签署人）签署。签署人须在《财政资源规则》申报表的声明表格中，证明《财政资源规则》申报表内所提供的数据在尽其所知的基础上是真实及正确的。为了履行这项职责，签署人应根据相关纪录核实速动资金的计算，进行必要的查询，及评估持牌法团的系统和程序是否可得出可靠、最新和准确的财务资料。在正常情况下，《财政资源规则》申报表应由负责人员或核心职能主管签署。另请注意，向证监会提供虚假或具误导性的数据，可能会构成《证券及期货条例》下的刑事罪行。

14. 根据《内部监控指引》，持牌法团须制定并维持适当的政策及程序，以确保公司遵守所有适用的法律及监管规定⁹。因此，持牌法团应就《财政资源规则》的合规性于以下范畴实施有效的监控措施¹⁰，其中包括：

(a) 稳妥的会计政策和程序¹¹，包括月底和年底的结算程序，以适时及适当地作出收入确认、计提和拨备；

(b) 为计算、监察和汇报速动资金设立输入与核对机制；

(c) 与持牌法团的业务活动及运作的性质、范围、规模和复杂性相称的有效内部监控流程，以持续监察速动资金；

(d) 定期对速动资金作出预测¹²，以配备及维持足够的速动资金缓冲；

(e) 处理速动资金盈余较低情况¹³的流动性管理框架，其中须制定有效的警报、相关缓解措施¹⁴及具明确步骤和时限的上报程序；

(f) 确保遵守所有相关通知规定的程序；及

(g) 就持牌法团与其外部服务提供商之间有关外判会计和《财政资源规则》合规职能¹⁵的范围、角色及责任作出明确的分配（如适用）。

19. 用附件B來提交事故報告.

備註：附錄A的總結不包括在這裡