Our Ref : B1/15C
             B1/21C

22 November 2001

The Chief Executive
All Authorized Institutions

Dear Sir/Madam,

Supervisory Policy Manual ("SPM"):
CR-G-5: "Country Risk Management”
MP-1: "Supervision of Mandatory Provident Fund Intermediaries”

I am pleased to inform you that, following consultation with the industry, the HKMA is issuing the above modules of the SPM today.

These two modules are being issued as guidance notes. The HKMA expects authorized institutions to review their current practices and make their best effort to follow the best practices recommended in the modules.

On-line access to the modules is available under the icon of "Supervisory Policy Manual” in the HKMA's public (http://www.info.gov.hk/hkma/eng/bank/spma/index.htm) and private (http://www.hkfin.net) web-sites.

Should you have any questions relating to the Manual or the individual modules, please feel free to contact either me or Ms Rita Yeung on 2878-1388.

Yours faithfully,

Michelle Quek
Acting Executive Director (Banking Policy)