Update on Migration of Deemed Registered Institutions under the Securities and Futures Ordinance - End of Transitional Period

The Hong Kong Monetary Authority (HKMA) announced today (Thursday) that the two-year transitional period for deemed registered institutions¹ to lodge application for migration to the new regime under the Securities and Futures Ordinance (SFO) ended on 31 March 2005.

Out of a total of 90 deemed registered institutions, approval has been given to 31 institutions to become registered institutions. Applications from another 44 deemed registered institutions are being processed. 15 deemed registered institutions have not submitted migration applications. They have to cease to carry on all regulated activities on 1 April 2005.

Deemed registered institutions whose migration applications are currently being considered may continue to carry on regulated activities permitted under the SFO until a decision has been reached on the application. These institutions are indicated as "registered under transitional arrangements" in the HKMA public register. All registered institutions and deemed registered institutions are placed under the supervision of the HKMA. Members of the public may visit the HKMA public register (http://apps.hkma.gov.hk/eng/index.php) for particulars of the securities staff of both registered institutions and deemed registered institutions whose migration applications are being processed.

For further enquiries, please contact:

H. F. Wong, Resource Coordinator (Press), at 2878 1802 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
31 March 2005

¹ The SFO provides for a two-year transitional period (from the commencement of the Ordinance on 1 April 2003) during which authorized institutions that were permitted under the old regime to carry out securities intermediary activities could continue these activities in the capacity of deemed registered institutions. Deemed registered institutions which intend to continue securities intermediary activities after 31 March 2005 had to submit applications to the Securities and Futures Commission for migration to the new regime within this period. The same transitional arrangements applied to securities brokers, which could carry on regulated activities as deemed licensed corporations.