Asia ESG: ICI Global Submits Response to HK SFC Consultation on Climate Risk Requirements for Asset Managers

[33048]

January 15, 2021 TO: ICI Global Members
ESG Task Force
ICI Global Regulated Funds Committee
ICI Global Regulated Funds Committee - Asia SUBJECTS: ESG
International/Global RE: Asia ESG: ICI Global Submits Response to HK SFC Consultation on Climate Risk Requirements for Asset Managers

 

ICI Global submitted the attached response to the Hong Kong Securities and Futures Commission’s (SFC) consultation on proposed regulatory requirements for asset managers on climate-related risk.[1]

The SFC proposes to amend the Fund Manager Code of Conduct (FMCC) and issue a circular to ensure that fund managers are taking climate-related risk into account in governance, investment management, and risk management, as well as providing certain disclosures. The SFC’s consultation makes reference to the Task Force on Climate-related Financial Disclosures (TCFD) reporting framework and follows a soft consultation to which we responded in August.[2]

Our response urged the SFC to allow fund managers flexibility when applying certain requirements and asked for clarification on certain proposed requirements.

 

Linda M. French
Assistant Chief Counsel, ICI Global

Irene Leung
Regional Lead, Member Relations and Research, Asia Pacific
ICI Global

Lisa Cheng
Research Analyst
ICI Global

 

Attachment

endnotes

[1] See SFC consults on climate-related risks in funds (29 October 2020), available at https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR104. For a detailed summary of the consultation, see ICI Memorandum No. 33025, available at https://www.iciglobal.org/iciglobal/pubs/memos/memo33025.

[2] See ICI Memorandum No. 32672, available at https://www.ici.org/my_ici/memorandum/memo32672.