The Government today (October 31) released the consultation conclusions in connection with the proposed regulatory framework for stored value facilities (SVF) and retail payment systems (RPS) in Hong Kong.
On May 22, 2013, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly conducted a three-month public consultation to gauge views on the proposed regulatory framework which includes a licensing regime for SVF, a designation regime for RPS, and necessary supervisory and enforcement powers for the HKMA to implement relevant regulations.
Through the proposed amendments to the Clearing and Settlement Systems Ordinance, the new regulatory framework seeks to ensure adequate protection of SVF users’ money kept by SVF issuers and the safety and soundness of innovative retail payment products and systems in Hong Kong.
During the consultation period, 41 submissions from industry players, public bodies, business and professional organisations and other stakeholders were received.
A government spokesman said, "We are encouraged by the general support from the respondents and are grateful for their constructive comments. We have carefully considered all the comments and will refine our proposals as appropriate. We believe that a well-regulated environment will help further develop retail payment products and services in Hong Kong and increase users’ acceptance of and confidence in adopting such products and services.”
The Government has taken on board many useful suggestions and comments from respondents, regarding the coverage of the regulatory regime, licensing criteria and conditions, as well as the relevant transitional arrangements.
The Government is finalising the relevant amendment bill in light of the outcome of the consultation, with a view to introducing it in the 2014-15 legislative session.
Financial Services and Treasury Bureau
Hong Kong Monetary Authority
31 October 2014