SFC requirements of Licensed Corporations on the use of external electronic data storage

No one could have foreseen the global COVID-19 pandemic or the pace at which businesses have had to adapt to the ‘new reality’. In reaction, Licensed Corporations have had to quickly adapt to remote working and accelerating the rollout of digital tools and infrastructure. The regulators have also reacted and the Securities and Futures Commission (SFC) has extended the deadline of the circular regarding external data storage providers (EDSPs) to 31 December 2020.

We are just beginning to take stock of how we met the challenges we all faced. Now is the time to see where we are on compliance with EDSP to make sure that the safeguards and measures the regulator expects are in place. It is imperative that we understand the impact of remote working and the adoption of digital tools and, importantly, where data is now stored. This paper considers how to interpret the circular and how KPMG can help to quickly take stock of where you are and how to meet the new timeline.