The Monetary Authority (MA) has today (Friday) issued a guideline on the regulation of advertising material for deposits issued over the Internet under section 92(6) of the Banking Ordinance (the Ordinance).
The Ordinance does not prohibit advertising material issued through new technological means, including the Internet, in respect of deposits to be placed outside Hong Kong. However, such material has to comply with the disclosure requirements specified in the Fifth Schedule of the Ordinance. Like regulators in other major financial centres, the MA's policy is to regulate only Internet advertising material for deposits which is targeted at members of the public in Hong Kong.
The guideline issued by the MA aims to specify the factors the MA will take into account in determining whether Internet advertising material for deposits is targeted at members of the public in Hong Kong. The factors specified in the guideline include:
It should be stressed that section 92 of the Ordinance does not provide for a mechanism for the MA to approve the issue of advertising material to solicit deposits from members of the public in Hong Kong. The onus is on the relevant persons to comply with the requirements in that section. In case of doubt, potential advertisers or any other persons who are unsure about their position under section 92 of the Ordinance should consider seeking their own legal advice to ensure compliance with the applicable law.
The Guideline is now available at the HKMA's website http://www.info.gov.hk/hkma/eng/bank/spma/attach/TM-E-2.pdf.
For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Sylvia Yip, Manager (Press), at 2878 1687
Hong Kong Monetary Authority
24 May 2002