The Hong Kong Monetary Authority (HKMA) issued on 6 January 2023 an updated Supervisory Policy Manual (SPM) module on “Complaints Handling and Redress” (IC-4).
Authorised institutions (AIs) should implement the updated SPM by 5 April 2023. The key enhancements include the following:
- AIs are now expected to proactively consider using alternative dispute resolution mechanisms such as mediation and arbitration services at the Financial Dispute Resolution Centre.
- Complaints handling staff should keep up to date with the latest regulatory requirements and be capable of identifying possible breaches and misconduct during the investigation process.
- Senior management should be responsible for ensuring effectiveness of the complaints handling and redress mechanisms, including whether deficiencies identified during the investigation are promptly rectified. AIs can also expect the HKMA to follow up with them on deficiencies identified in the complaints handling process.
The updated SPM aligns the HKMA’s requirements with the latest global best practice in financial consumer protection, in particular the G20/OECD High Level Principles on Financial Consumer Protection that were endorsed by G20 leaders at the Bali summit in November 2022 (see Principle 12 on Complaints Handling and Redress).
