Regulation of Stored Value Facilities (SVF)
Licensing of SVF
The issue of the SVF is subject to a licensing regime administered by the Monetary Authority. The Monetary Authority may grant an SVF licence to the applicant only if the Monetary Authority is satisfied that all the minimum criteria applicable in relation to the applicant are fulfilled, and if the SVF licence is granted, the minimum criteria will continue to be fulfilled in relation to the applicant as a licensee.
Explanatory Notes on Licensing for Stored Value Facilities
The Explanatory Notes on Licensing for Stored Value Facilities (PDF file, 352KB) intends to provide guidance about the licensing regime established by the PSSVFO, and the policies and approach of the HKMA in implementing it. Parties applying for an SVF licence are therefore advised to familiarise themselves not only with this note but also with the PSSVFO and the relevant guidelines issued by the Monetary Authority when available.
Supervision of SVF Licensee
The Guideline on Supervision of Stored Value Facility Licensees (“Guideline”) (PDF file, 234KB) is issued by the HKMA pursuant to section 54(1A)(b) of the PSSVFO. It aims to set out the high level supervisory principles that the HKMA adopts in assessing whether certain requirements imposed on SVF licensees are complied with. In order to fulfil the relevant statutory obligations or other relevant provisions of the PSSVFO, SVF licensees should strive to adhere to those supervisory principles as set out in the Guideline.
To help licensees in better understanding the standards by which the principles set out in the Guideline should be applied, the HKMA issues the Practice Note on Supervision of Stored Value Facility Licensees (PDF file, 1.62MB) to provide additional guidance in respect of specific sections or paragraphs of the Guideline as and when necessary.
SVF licensees are also required to have in place adequate and appropriate systems of controls for anti-money laundering and counter-financing of terrorism (“AML/CFT”) in order to ensure compliance with relevant statutory requirements. A guideline is also issued by the HKMA pursuant to section 54(1A)(b) of the PSSVFO to provide practical guidance in this regard.
Major regulatory tools
The major tools that the HKMA intends to use in regulating licensees, in general, include: (a) on-site examinations; (b) off-site reviews; (c) independent assessments; (d) review of auditors’ reports; and (e) meetings with the management of the licensee.
Register of SVF licensees
The Register of SVF licensees ("the Register") is established and kept by the Monetary Authority pursuant to the PSSVFO. It contains, in respect of each licensee, the name of the licensee; the address of the principal place of business in Hong Kong of the licensee; the licence number of the licence held by the licensee; and any other particulars of the licensee that the Monetary Authority considers appropriate.
Enquiries about SVF regulation
If you have any enquiry regarding the regulation of SVF, please write to the HKMA, contact the HKMA at SVFComplaintEnquiry@hkma.gov.hk or 2878 1188.
Complaints about SVF licensees
If you have any enquiry in relation to complaints about SVF Licensees, please visit our Complaints about SVF Licensees webpage.
Please note that all telephone conversations about enquiries and complaints between you and the HKMA may be recorded.