Oversight - SFC circulars on vaccination and exemption from quarantine

As part of the Hong Kong Government's attempt to maintain relatively normal economic activity in the financial markets and retain Hong Kong's status as an international financial centre during the COVID-19 pandemic, the Securities and Futures Commission (SFC) published the Circular to licensed corporations - Exemption for senior executives of licensed corporations - Compulsory Quarantine of Certain Persons Arriving at Hong Kong Regulation (Cap. 599C) - Compulsory Quarantine of Persons Arriving at Hong Kong from Foreign Places Regulation (Cap. 599E) (Quarantine Exemption Circular) on 28 May 2021, and a related update entitled Circular to licensed corporations - Updates to the Exemption Scheme (Exemption Scheme Update) on 21 June 2021. These exempt, in a limited way, senior executives of licensed corporations or of their overseas affiliates from certain of the compulsory quarantine arrangements when such individuals return or travel to Hong Kong, provided that they are fully vaccinated and meet the prescribed eligibility criteria.

Separately, the SFC published the Circular to licensed corporations - Business continuity planning in view of COVID-19 Vaccination Programme (BCP Circular) on 1 June 2021. In this, the SFC encourages licensed corporations to consider vaccination as a critical part of operational risk management in the context of Business Continuity Plans (BCPs).

Both circulars took effect immediately.

This Oversight summarises the key points as set out in the two circulars and examines their implications for licensed corporations.