2022 HKMA Mandatory Reference Checking Circular

The MRC Scheme was first proposed by the HKMA in May 2020 after consultation with industry associations and financial institutions. Its aim was to address the “rolling bad apples” phenomenon in the banking sector in Hong Kong.

The recent circular released by HKMA builds on feedback from prior consultation papers and provides further guidelines on the MRC Scheme. The primary proposal is that AIs recruiting for certain positions that fall within the scope of the Scheme must approach the former and current AI employer(s) of a prospective employee (referred to as “reference providing AIs”). Recruiting AIs must request conduct-related information covering seven years prior to the application.

Read on to get details on:

• Proposed updates to the circular and requirements for reference providing Institutions
• The implementation phases for the MRC Scheme.
• Timeline for implementation
• How will the MRC Scheme affect hiring?