The Securities and Futures Commission (SFC) today published a report which sets out regulatory standards to promote the operational resilience of intermediaries. The report also discusses measures to manage the major possible risks of remote working arrangements, including working from home.
During the COVID-19 pandemic, licensed corporations faced significant disruptions which tested the reliability of their information systems, internal controls, facilities for providing client services and management of third-party service providers. A high degree of resilience helped them maintain business as usual. Remote working, particularly working from home, has become part of many licensed corporations’ business continuity strategies.
“Disruptions are unavoidable and it is crucial for intermediaries to have in place a proper framework to prepare for, adapt and respond to disruptive incidents and to ensure continued operational resilience,” said Ms Julia Leung, the SFC’s Deputy Chief Executive Officer and Executive Director of Intermediaries. “As a hybrid mode of working is going to be the new norm, firms should also be vigilant about the risks associated with remote working, especially when it comes to cybersecurity, information security and data privacy.”
The report shares examples and lessons learned drawn from the SFC’s review of some licensed corporations’ operational resilience measures during the pandemic and other disruptive events.
