Welcoming Remarks at the HKMA-HKAB Briefing Session on Cross-sector Reference Checking Arrangement Between the Banking and Insurance Sectors
Speeches
02 Jun 2026
Welcoming Remarks at the HKMA-HKAB Briefing Session on Cross-sector Reference Checking Arrangement Between the Banking and Insurance Sectors
Alan Au, Executive Director (Banking Conduct), Hong Kong Monetary Authority
- Good morning, ladies and gentlemen. A warm welcome to today’s industry briefing on the Cross-sector Reference Checking Arrangement between the Banking and Insurance Sectors (Cross-sector Checking Arrangement).
- First of all, I would like to express my sincere thanks to The Hong Kong Association of Banks (HKAB) for co-organising this briefing session with the HKMA. I am pleased to see over 300 representatives from banking entities, or authorized institutions under the Banking Ordinance, including their appointed recruiting agencies, joining us in person and virtually. Your presence reflects the industry’s strong commitment, especially among banking entities that are also licensed insurance agencies, which will be at the forefront of implementing this initiative.
- Last month, Mr Arthur Yuen, Deputy Chief Executive of the HKMA, and Mr Clement Cheung, Chief Executive Officer of the Insurance Authority (IA), jointly announced the launch of the Cross-sector Checking Arrangement, in collaboration with the respective industry associations during an industry event. Today, we shift our focus to implementation, enabling banking entities to roll up their sleeves and take action.
- Bank culture plays a pivotal role in shaping staff behaviour. This aligns with the HKMA’s commitment to fostering a sound bank culture, founded on three core pillars: strong governance, appropriate incentive systems, as well as effective assessment and feedback mechanisms.
- The Mandatory Reference Checking Scheme (MRC Scheme) has undoubtedly marked a significant milestone in the development of bank culture in Hong Kong. Over the past few years, working closely with the HKAB, we have woven a net across the banking industry to catch what we refer to as “rolling bad apples”.
- Since its launch in 2023, the MRC Scheme has expanded from covering 3,500 senior staff to more than 50,000 staff engaged in securities, insurance or MPF regulated activities, representing around half of the banking workforce.
- The statistics speak for themselves. As of end-2025, around 2,800 reference checks have been completed, of which 29 involved negative information. While the percentage is small at around 1%, it confirms that the Scheme is effective and that potential “bad apples” are being identified.
- With over 110,000 life insurance intermediaries across the banking and insurance sectors, staff movement is inevitable. However, we all know that misconduct does not disappear when someone changes jobs. It often follows them.
- This is precisely why the HKMA and the IA have worked very closely together to establish the Cross-sector Checking Arrangement, in close collaboration with the respective industry associations. For the first time, banking and insurance entities will soon be sharing conduct-related information on prospective intermediaries covering the past seven years. Reference checks will work in both directions: from banking to insurance, and from insurance to banking.
- This is more than just checking references. It is about building trust, one check at a time. And it begins with preparation, and relies upon a robust implementation process and checking procedures. Phase 3A of the Cross-sector Checking Arrangement will be implemented in July, covering all life insurance intermediaries in banking and insurance entities. I encourage all relevant banking entities to continue their preparatory work, including communicating with relevant staff, engaging stakeholders and ensuring your own readiness in your internal processes and procedures. It is precisely for these reasons that we are organising the briefing today to help address any remaining questions and facilitate the preparation of your organisations. Moreover, feedback during Phase 3A will help shape the next phase and inform future expansions.
- The Cross-sector Checking Arrangement would not have been possible without the strong support from the industry. It also builds on the success of the MRC Scheme. We are now widening and strengthening the net, not only for banking, but for the insurance sector as well.
- Looking ahead, the two regulators will continue to work closely with the industry to ensure a smooth implementation of the Cross-sector Checking Arrangement. We will also engage with other fellow financial regulators to explore possible expansion into other financial sectors, so that good conduct becomes a hallmark of every financial practitioner in Hong Kong.
- I trust that today’s briefing will be informative and helpful in supporting your preparations. We look forward to your continued support and collaboration in making this important initiative a success.
- Thank you very much.
