HKMA Steps Towards Regulating Big Data Analytics, AI in FinTech

Herbert Smith Freehills says the HKMA push for adoption of the Ethical Accountability Framework in FinTech development represents a broader movement toward regulating artificial intelligence. The HKMA Hong Kong Monetary Authority recently issued a circular to encourage authorised institutions to adopt the Ethical Accountability Framework for the collection and use of personal data issued by the Office of the PCPD Privacy Commissioner for Personal Data.
A report on the EAF was published by the PCPD in October 2018, which explored ethical and fair processing of data through fostering a culture of ethical data governance and addressing the personal data privacy risks brought by emerging information and communication technologies such as big data analytics, artificial intelligence and machine learning.
The EAF is expressly stated to be non-binding guidance, intended as a first step towards a privacy regime better equipped to address modern challenges. However, the HKMA’s circular arguably elevates the legal status of the EAF for authorised institutions.