The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) have published the conclusions of their consultation on the proposed regulatory regime for stored value facilities (SVFs) and retail payment systems (RPSs) in Hong Kong.
Most respondents generally consider that a well-regulated environment will help further develop retail payment products and services in Hong Kong, and enhance users’ acceptance of and confidence in such products and services.
There are also comments on specific issues, including those in connection with a level-playing field between banks’ and non-banks’ SVF business, the treatment of loyalty cards and bonus point schemes, the licensing requirements (including float safeguarding and management requirements), the possible exemption for certain multi-purpose SVFs with a restricted usage at limited locations, the maximum value to be stored on a SVF, and the regulation of single-purpose SVFs.
What this means for you
Although Hong Kong and UK firms operate under different regulatory frameworks, UK firms which provide similar services or looking to move into the Hong Kong space may find these conclusions an interesting read. The FSTB and HKMA aim to introduce an amendment bill into the Legislative Council in the 2014-15 legislative session.