Does Hong Kong Remain an Equivalent Jurisdiction for the EU Credit Rating Regime?

20 Pages Posted: 10 Apr 2017 Last revised: 2 Jun 2017

See all articles by Syren Johnstone

Syren Johnstone

Department of Law, University of Hong Kong; Asian Institute of International Financial Law

Date Written: February 1, 2017

Abstract

Credit ratings issued by credit rating agencies regulated in Hong Kong are serviceable in the European Union (EU) because Hong Kong is recognized for these purposes as an equivalent jurisdiction. The perimeter of Hong Kong’s credit rating regime has recently come under the scrutiny of the Securities and Futures Appeals Tribunal, which has established important boundary lines impacting on the authorization, supervision and enforcement of the credit rating industry in Hong Kong. This article analyzes the case and identifies four elements central to it, namely, the information-based, document-based and act-based perimeters of the Hong Kong regime as well as its primary regulatory objective. It is suggested that the Tribunal’s approach to these elements may represent a material departure of Hong Kong’s legal and supervisory framework from the regime in the EU that could adversely affect Hong Kong’s standing as an equivalent jurisdiction.

Keywords: credit rating regulation, Hong Kong, EU equivalence, Moody’s

Suggested Citation

Johnstone, Syren, Does Hong Kong Remain an Equivalent Jurisdiction for the EU Credit Rating Regime? (February 1, 2017). University of Hong Kong Faculty of Law Research Paper No. 2017/005. Available at SSRN: https://ssrn.com/abstract=2949585 or http://dx.doi.org/10.2139/ssrn.2949585

Syren Johnstone (Contact Author)

Department of Law, University of Hong Kong ( email )

Faculty of Law, Pokfulam Road
Pokfulam
Hong Kong
Hong Kong

HOME PAGE: http://www.law.hku.hk/faculty/staff/syren_johnstone.php

Asian Institute of International Financial Law ( email )

Faculty of Law, Pokfulam Road
Pokfulam
Hong Kong
Hong Kong

HOME PAGE: http://www.law.hku.hk/faculty/staff/syren_johnstone.php

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