Final Call for Migration to the New Licensing Regime under the Securities and Futures Ordinance

The SFC urges all licensees who were registered under the former licensing regime but have yet to migrate to the new regime under the Securities and Futures Ordinance to act now, as the two-year transitional period is coming to an end.

As of 31 December 2004, about 2,700 licensees (including 2,300 individuals and 400 corporations) registered or licensed under the former regime had not yet submitted their migration applications. This represented approximately 17% of all those who needed to migrate.

For those who do not submit their migration applications to the SFC by the end of the two-year transitional period (i.e. on or before 31 March 2005), their existing licences will automatically lapse. They will have to discontinue all regulated activities from 1 April 2005.

Licensees should lodge their migration applications as soon as possible in order to avoid last minute rushes or any interruptions to their businesses and inconvenience to their clients. As long as they have lodged their applications before the transitional period ends, they may continue to carry on the current regulated activities which they have applied for unless and until the SFC determines otherwise.

For more information, licensees may refer to the Guidelines on Transitional Arrangements, the samples of completed migration application forms, as well as two circulars issued by the SFC on 21 October 2004 and 21 December 2004 in relation to migration and client assets arrangements for those not intending to migrate respectively. These publications can be downloaded from the SFC website (Note 1). Licensees having difficulties or queries on migration matters should contact the Licensing Department of the SFC without delay.

Investors will be able to see from the Public Register on the SFC website whether an intermediary has applied for migration to the new regime. For an intermediary that has yet to do so, there is a remark denoting "Licensed/Registered under transitional arrangement (migration application not yet lodged)" in the intermediary’s record. Investors may wish to enquire with the firm concerned as to its migration plan and make alternative arrangements with their assets where necessary.

Ends

Notes to Editor:

1. The Guidelines on Transitional Arrangements can be downloaded from:
http://eapp01.sfc.hk/apps/cc/RegulatoryHandbook.nsf/lkupMainAllDoc/H177/$FILE/guidelines_on_transitional_arrangements_eng.pdf

Sample completed migration application forms can be downloaded from:
http://www.sfc.hk/sfc/image/EN/forms/licensing/migration_sample_eng.tif

Circular entitled "Migration to the new regime under the Securities and Futures Ordinance" issued on 21 October 2004 can be downloaded from:
http://eapp01.sfc.hk/apps/cc/RegulatoryHandbook.nsf/lkupMainAllDoc/H347/$FILE/21.10.04_eng.pdf

Circular entitled "Client assets arrangement in anticipation of business cessation" issued on 21 December 2004 can be downloaded from:
http://eapp01.sfc.hk/apps/cc/RegulatoryHandbook.nsf/lkupMainAllDoc/H362/$FILE/21.12.04%20-%20eng.pdf