Our Ref :  B1/1C

5 June 2008

The Chief Executive
All Authorized Institutions

Dear Sir / Madam,

Self-Assessment of Compliance with the Code of Banking Practice

The biennial self-assessment of compliance with the Code of Banking Practice covering the period 1 June 2006 to 31 May 2008 will be due for submission by 29 August 2008.  Enclosed please find a reporting template for this purpose.

As the frequency of the self-assessment exercise has been reduced to a biennial, from an annual, basis since the last exercise, the current assessment period will cover a two-year period.  Other than that, the reporting requirements are the same as those of the last self-assessment exercise.  All authorized institutions (AIs) are required to commission their internal audit department, compliance department or other equivalent unit to conduct the self-assessment.  The chief executive of the AI should approve and co-sign the self-assessment report.   Where an instance of non-compliance is identified, the AI concerned should provide details of the case including its plan to rectify the situation.  A full account should be given if the instance of non-compliance is a recurrence of similar instances identified in previous exercises.

The soft copy of the self-assessment template in Excel format and the submission instructions will be sent to you via the STET system later this month. If you have any questions concerning data input and return submission, please contact our helpdesk on 2878 1800.  For enquiries regarding the self-assessment, please contact Miss May Cheung on 2878 1501.

Yours faithfully,

Karen Kemp
Executive Director
(Banking Policy)