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The Securities and Futures Commission (SFC) today released additional guidance to market participants on external electronic data storage in response to questions from licensed corporations and other stakeholders.
The guidance, in the form of frequently asked questions (FAQs), follows the SFC’s 31 October 2019 circular setting out requirements for using external electronic data storage providers (EDSPs) to exclusively keep records or documents required under the Securities and Futures Ordinance (SFO) or the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Note 1).
As an alternative means of satisfying the requirements in the circular, the SFC will accept an undertaking from each of the licensed corporation’s two Managers-In-Charge (MICs) of Core Function or, with the SFC’s consent, one MIC or one Responsible Officer (Note 2).
The SFC today also made consequential changes to its FAQs on premises for business and record keeping.
Notes:
- Under section 130 of the SFO, a licensed corporation shall not use any premises for the keeping of records or documents relating to the carrying on of the regulated activity for which it is licensed without the SFC’s prior written approval.
- If a licensed corporation keeps electronic regulatory records exclusively with an EDSP, paragraphs 9(a) and 9(b) of the 31 October 2019 circular require the licensed corporation to obtain the countersignature of a Hong Kong EDSP to a notice given by the licensed corporation or an undertaking from a non-Hong Kong EDSP.
