Token and Stored Value Schemes

In the light of recent press reports about schemes involving the
issue of tokens which can be used to purchase goods and services,
the Hong Kong Monetary Authority (HKMA) wishes to clarify that not
all schemes involving the taking of money from the public are
subject to the HKMA's supervision.

The HKMA has responsibility for the authorisation and
supervision of companies which take deposits from the public or
issue multi-purpose stored value cards (e.g. Octopus, Mondex,
Visacash). But there are other schemes involving the taking of
money from the public that are not subject to the authorisation and
supervision of the HKMA (for example, schemes under which money is
paid for tokens or other forms of advance payment for goods and
services). The public should therefore exercise due caution in
respect of such schemes, as their money will not benefit from
supervision by the HKMA.

A list of companies subject to the HKMA's supervision is
available on the HKMA's website. Members of the public who have any
doubts about whether a company is authorised by the HKMA should
check with the HKMA by calling 2878 8222.

For further enquiries, please contact:

Thomas Chan, Senior Manager (Press), at 2878 1480 or
Caitlin Wong, Manager (Press), at 2878 1687

Hong Kong Monetary Authority

5 January 2001