Accountability

Roles of the Financial Market Infrastructure Oversight Team

The oversight of the designated clearing and settlement systems (CSSs) and the HKTR within the HKMA is performed by the Financial Market Infrastructure Oversight (FMIO) team under the Banking Conduct Department (BCD), which is segregated from the Financial Infrastructure Department (FID) of the HKMA to maintain checks and balances. The FID is a department within the HKMA responsible for the operation and development of the financial infrastructures in Hong Kong. There are effective “Chinese wall” arrangements to avoid any potential conflicts of interest. All information obtained by the FMIO team of the BCD during the oversight process is kept strictly confidential and solely used for oversight purposes.

Process Review Committee

The Process Review Committee (PRC) is composed of independent members (see membership list). Its mandate is to review the processes and procedures adopted by the MA in making decisions relating to or affecting the designated systems in which the MA has a legal or beneficial interest. This arrangement helps ensure that the same set of oversight standards is applied to all designated systems, whether or not the MA has an interest in them. The PRC is required to submit annual reports and, if appropriate, special reports to the Financial Secretary of the Hong Kong Special Administrative Region (FS). With the approval of the FS, its annual report is published in full on the HKMA website to promote transparency.

Disclosure and Transparency

The FMIO team aims at transparency in its oversight of the FMIs as far as this is compatible with the security of the various FMIs under its purview and the legitimate confidentiality of data handled by or relevant to these FMIs. Information regarding the oversight objectives, policies, the framework and the approach taken is available on the website and in various publications of the HKMA. The information will be updated from time to time if required. As mentioned above, the annual reports of the PRC, with the approval of the FS, are published in full on the HKMA website.

Payment Systems and Stored Value Facilities Appeals Tribunal

Under section 34(1) of the Ordinance, the Payment Systems and Stored Value Facilities Appeals Tribunal (PSSVFAT) is established to hear appeals from persons who are aggrieved by a decision of the MA on the following:-

the designation of a clearing and settlement system or a retail payment system;
the revocation of a designation;
the issuance of a certificate of finality; or
the suspension or revocation of a certificate of finality.

The PSSVFAT is chaired by a judge and consists of a panel of independent members appointed by the Chief Executive of the Hong Kong Special Administrative Region. The Tribunal will only meet on a need basis. The Chairman and no fewer than two members chosen from the panel will form a Tribunal to hear appeals.

Last revision date : 12 March 2024