Capital Adequacy and Provisioning Requirements for Investment Guarantees under MPF Schemes

Nick Etches, KPMG, Hong Kong. Nick.etches@kpmg.com.hk

The Hong Kong Monetary Authority (?HKMA?) has issued by notice in the Gazette the ?Guidelines on Capital Adequacy and Provisioning Requirements for Investment Guarantees under Mandatory Provident Fund (?MPF?) Schemes? (?Guidelines?) and expects all Authorised Institutions which act as guarantors of MPF guaranteed funds to review their current practices and adopt the minimum standards stipulated in the Guidelines. The Guidelines will take immediate effect and are included in the Supervisory Policy Manual of the HKMA.