(6)The legal, supervisory and enforcement arrangements applicable to ‘authorised institutions’ (‘AIs’) (as defined in section 2(1) of the Banking Ordinance (‘BO’), consisting of licensed banks, restricted licence banks and deposit-taking companies) in Hong Kong for transactions on non-centrally cleared derivative contracts are set out in Supervisory Policy Manual module CR-G-14 entitled ‘Non-centrally Cleared OTC Derivatives Transactions – Margin and Other Risk Mitigation Standards’ (‘the Policy Manual’) of the Hong Kong Monetary Authority (‘HKMA’), a statutory guideline issued under section 7(3) of the BO. Under the BO, the principal function of the HKMA is to promote the general stability and effective working of the banking system through the regulation of banking business and the business of taking deposits, and the supervision of AIs and their business activities. The purpose of the Policy Manual is to set out minimum standards that the HKMA expects AIs to adopt in relation to margin and other risk mitigation techniques for non-centrally cleared OTC derivatives transactions. The Policy Manual was first published on 27 January 2017 and then updated on 11 September 2020. Some of its requirements are subject to a phase-in in accordance with the international framework and aligned with the existing phase-in in Delegated Regulation (EU) 2016/2251. Non-compliance with the statutory guideline may trigger the review of the authorisation criteria set out in the Seventh Schedule of the BO and as such with regard to its outcome, the statutory guideline may be considered equivalent to a legal requirement in the context of this decision.