Stored Value Facilities and Retail Payment Systems

The issue of the SVFs is subject to a licensing regime administered by the Monetary Authority (MA). The MA may grant an SVF licence to the applicant only if the MA is satisfied that all the minimum criteria applicable 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.

The Monetary Authority (MA) is responsible for designating important RPSs and overseeing their operation pursuant to the Payment Systems and Stored Value Facilities Ordinance (PSSVFO). The PSSVFO defines an RPS as a system or arrangement for the transfer, clearing or settlement of payment obligations relating to retail activities (whether the activities take place in Hong Kong or elsewhere), principally by individuals, that involve purchases or payments; and includes related instruments and procedures. The PSSVFO stipulates criteria and relevant factors based on which the MA may determine whether or not an RPS should be designated, and also requirements that the designated RPSs are required to comply with. The Explanatory Note on Designation of Retail Payment Systems explains the regulatory regime in further detail. The MA is empowered to impose sanctions under section 33Q of the PSSVFO. The Guideline on Exercising Power to Order a Pecuniary Penalty sets out the manner in which the power to order a pecuniary penalty under section 33Q(2)(a) of the PSSVFO is to be exercised. A Guidance Note provides an overview of how the HKMA considers and recognises cooperation in investigations and enforcement proceedings under the PSSVFO and other ordinances.