On 16 December 2016, the Securities and Futures Commission (SFC) announced the introduction of a Manager-in- Charge initiative (MIC Regime) aimed at increasing the accountability of the senior management of Hong Kong licensed corporations.

The introduction of the MIC Regime follows the recent implementation of the Senior Managers and Certification Regime in the UK and, as with other regulators around the world, corporate governance and senior management accountability has been an increasing focus of the SFC for several years.

The SFC’s intention behind the MIC Regime is to enhance, adapt, and supplement existing law and regulatory requirements imposed on the senior management of licensed corporations. The regime does not change regulatory or enforcement law, nor does it change the licensing approval regime. As noted by the SFC, “[t]hese new measures are built upon existing regulations...[they] do not seek to increase the SFC’s powers….We [the SFC] aim to heighten the awareness of Manager’s-In-Charge of their obligations and liability under the law.”