The Securities and Futures Commission's latest initiative also aims to promote awareness of senior management obligations under the current regulatory regime.

A Hong Kong financial watchdog has introduced heightened regulatory measures to increase the accountability of the senior management of all licensed institutions.

The Securities and Futures Commission identified eight core functions which are “instrumental” to the operations of licensed corporations and made these apparent to all of its licensees, the regulator said in a statement. All licensees are expected to designate “fit and proper” individuals to take charge of these functions. Those who have overall managerial oversight of the institution and those in charge of key business line functions are also expected to seek the SFC's aproval as responsible officers.

As of April next year, corporate licence applicants and existing licensed corporations will have to submit up-to-date management structure information and organisational charts to the SFC.

“Senior managers bear primary responsibility for the effective and efficient management of their firms, and they should be well aware of the obligations currently imposed on them as well as their potential liability if they fail to discharge their responsibilities," said Ashley Alder, the SFC’s chief executive, adding: "These measures will provide more clarity to the industry and strengthen our licensed firms’ governance structures so as to better align with the present responsible officer and regulated persons regime."