Checklist on policy, procedures and controls (Compliance Manual)

Checklist on policy, procedures and controls to ensure that the Compliance Manual for a regulated financial institution or an investment fund comply with the relevant law and regulations.

1. Do you have any written policies and control procedures to ensure that your board of directors

a) establish a management structure which includes the roles, responsibilities, accountability and reporting lines of your senior management;

b) oversee the appointment of your senior management;

c) establish systems and controls to supervise your senior management and supervisory staff members who act under the delegated authority by your board of directors;

d) establish systems and controls to monitor and regularly evaluate the performance of your senior management in their respective areas of responsibility; and

e) establish policies to ensure that the senior management have access to regular training to maintain and enhance their competencies and to keep themselves updated on industry and regulatory developments relevant to their respective areas of responsibility?

2 How often will your board of directors evaluate the performance of your senior management in their respective areas of responsibility?

3 Do you have any written policies and control procedures to ensure that your senior management

a) have a sound understanding of your business activities and their associated risks;

b) oversee the development and implementation of risk management policies and control procedures to ensure that your risks can be identified, monitored and controlled and that financial and management information is reliable, timely and complete;

c) establish policies to ensure that your risk management, compliance, operational control and review functions are properly positioned, staffed and resourced and carry out their responsibilities independently, objectively and effectively; and

d) review and update regularly your risk management measures to ensure that they remain adequate and consistent with your operating environment, and are able to support business expansion?

4 Do you have any written policies and control procedures on the following functions?

If yes, please indicate how often such policies and control procedures will be reviewed and updated by your senior management.

How to use this Document?

This document should be carefully read by the respective financial institutions.

Checklist on policy, procedures and controls to ensure that the Compliance Manual for a regulated financial institution or an investment fund comply with the relevant law and regulations.

This is in accordance with SFC and HKMA regulations.