In partnership with

Asia’s Financial Services:
Ready for the Cloud
A Report on FSI Regulations impacting
Cloud in Asia-Pacific Markets
Tokyo, Japan
1 Nov 2016

Lim May-Ann
Executive Director, Asia Cloud Computing Association
mayann@asiacloudcomputing.org

Full report available at
http://www.asiacloudcomputing.org/researchChallenge: FSIs
have been slow
to adopt Cloud• Japan has led in technology readiness, but
throughout the region, here’s what’s been
happening…
• FSIs are concerned• Regulatory compliance• Protecting business processes and data
• Regulators are concerned• Maintaining regulatory authority and oversight• Ensuring FSIs are meeting requirements• Confusion & misunderstanding amplifies concerns

2Understanding
FinancialServicesRegulations• Clear descriptions of laws and guidelinesthat may apply to cloud computing (withcitations)• Recommendations to help CSPs and FSIs toget to a deal
• Country-specific analysis• Describes the law• Addresses confusion & misperceptions• Identifies needed reforms
3Cloud Businesses (CSPs)••

Improve understanding of FSI customer needs
Increase FSI cloud adoption

Financial Services (FSIs)

Who will benefit
from this report?

•Better understand how cloud services can meettheir regulatory challenges & business objectives

Policymakers••

Understand how FSI deployment of cloud canmeet regulations to protect citizens & financial
markets
Enable FSI cloud adoption for industry
competitiveness and economic growthh t t p : / / w w w. a s i a c l o u d c o m p u t i n g . o r g ¥ ¥ i n f o @ a s i a c l o u d c o m p u t i n g . o r g4

14 Country Asia overview

 A (non-lawyer) reader-friendly overview of the key FSI regulations
related to adoption of Cloud Computing.

Assessment ofthe cloud-critical
FSI regulationsfor 14 Countries

Scoring Categorizes countries as,
orto indicate where
they have or don’t have certain protections, characteristics or impacts
on cloud adoption.
Country annexes Detailed overviews for each country to provide substantial information
about regulatory environments.
Solutions Where analysis identifies a problem, the report will suggest solutions.
The solution may be directed at CSPs, FSIs or regulators.
5Explains the FSI Regulatory Environment Key FSI regulatory obligations and challenges

Spotlight on theissues…

 How cloud services can meet regulatory & businessobjectives
 How CSPs can help FSIs meet requirements…Specific
recommendations

Provides Specific Recommendations
 For CSPs (and FSIs) to match services & contracts toregulatory compliance For government regulatory reformh t t p : / / w w w. a s i a c l o u d c o m p u t i n g . o r g ¥ ¥ i n f o @ a s i a c l o u d c o m p u t i n g . o r g

6Process for Adopting CloudContracts for Cloud Services
Data Location
Data Use Limitations

Key Issues

Data Segregation

Audit, Review and Monitoring
Security
Business Continuity

Exit
7

Key Findings•

There are no “blanket bans” or broad prohibitions or restrictions that should prevent
FSIs in APAC from adopting the use of cloud services.

•Sometimes there is a lack of regulation. Sometimes it is not evident how theregulations apply as they are unclear or appear to be too restrictive.

•Regulations in Hong Kong, Japan and New Zealand comport with more of the ACCA
recommendations than any other jurisdiction.

•The Philippines and China have the most to do to enable cloud adoption by FSIs.

•South Korea revised regulations in Jun 2015, moving them from ‘having the most to do’
to ‘having done the most’ to align with ACCA’s recommendations for regulations.

•CSPs can contribute to the growth of cloud services by ensuring that they have a goodunderstanding of the regulatory requirements - to fit their offerings into the regulatory
landscape and work with the FSI (and regulators, where appropriate) to ensure
regulatory requirements are met.

•Regulators have a key role: Several jurisdictions are allowing cloud services adoption
under current regulations for outsourcing; in a other countries, they are developing new
regulations, not specific to cloud, but that clearly enable cloud adoption.
8The Overall Status
for eachJurisdiction