Oversight - SFC releases new FAQs on external electronic data storage

On 10 December 2020, the Securities and Futures Commission of Hong Kong (SFC) released its long-awaited Frequently Asked Questions on Use of External Electronic Data Storage (FAQs). The FAQs aim to provide additional guidance regarding the SFC’s 31 October 2019 circular on the use of external electronic data storage (Circular). The FAQs explain the approval requirements for such record keeping as well as the regulatory standards to be observed by licensed corporations when information is kept or processed electronically using external electronic data storage providers (EDSPs).

We have been involved with the AIMA Working Group in relation to the Circular and have been involved in the development of the Access Map (defined below) and undertaking in relation to the requirements. This Oversight provides a brief overview of the existing requirements and regulatory standards outlined in the Circular, and analyses the practical implications arising from the FAQs.