Hong Kong’s SFC waives licensing fees for 2020/21

Maria Nikolova

The decision aims to relieve the regulatory cost burden on the securities and futures industry.

There has been a bit of positive news for investment firms licensed in Hong Kong, as the Securities and Futures Commission (SFC) today announces waiving the annual licensing fees for the financial year of 2020/21.

The fee waiver applies to annual licensing fees payable by all licensed corporations, registered institutions, responsible officers and representatives. It does not apply to any other fees, such as licence application fees and transfer fees. The annual licensing fees payable before April 1, 2020 will not be affected by the waiver.

The decision aims to relieve the regulatory cost burden on the securities and futures industry having taken into account the current challenging market environment. The waiver of the fees will cost approximately $117.5 million in forgone revenue for the financial year 2020/21 in addition to the 50% waiver already announced earlier this year.

Chief Executive Officer of the SFC, Mr Ashley Alder commented:

“We hope this goodwill gesture will provide a certain degree of financial relief for over 47,000 licensees and registrants in particular smaller firms amidst the current economic downturn”.

The SFC’s report for the April-June quarter revealed a drop in number of license applications received.

During the quarter, the regulator received 1,756 licence applications, down 10.5% from the previous and 13.5% year-on-year. The number of corporate applications dropped 14.3% from the last quarter to 66, down12% year-on-year.

As at June 30, 2019, the number of licensed corporations reached a record high of 3,017, up 51% from the same period in 2014 and 8.7% from last year. At the same time, the number of licensees and registrants totalled 47,239, up 4.7% year-on-year.

Read this next

Digital Assets

Zero Hash obtains AUSTRAC registration in Australia

Seed CX is expanding the reach of its crypto settlement solution, dubbed ‘Zero Hash,’ which has registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a digital currency exchange provider.

Digital Assets

UK advertising watchdog slams Arsenal over misleading crypto ads

The UK advertising watchdog has reprimanded Arsenal Football Club for promoting crypto assets without warning fans of the potential associated risks.

Retail FX

Swissquote profit slips as crypto revenue falls by two thirds

Swissquote Group, Switzerland’s provider of online trading services, reported that its H1 revenues dropped by nearly a quarter from a year ago as clients’ interest in crypto trading stagnated.

Digital Assets

Crypto.com granted approval to operate business in Cayman Islands

Crypto.com, one of the longest-established crypto platforms, has obtained a new registration in the Cayman Islands under the Virtual Asset Services Providers Act.

Executive Moves

United Fintech hires Mitch Vine and Danny Finnerty to expand US footprint

“United Fintech’s expansion in the US is pivotal to our mission of helping financial institutions digitize and gain access to best in class capital markets focused technology.”

Digital Assets

Ankr backed by Binance Labs after several initiatives in support of BNB Chain

Ankr has made a series of upgrades to the BNB Chain, including Erigon, the Archive Node, and the latest BNB Application Sidechain (BAS) scalability solution.

Retail FX

Financial Commission terminates membership of LordFX

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has expelled forex brokerage LordFX from its membership, according to a FinaCom statement.

Industry News

Match-Prime Liquidity sponsors Cypriot football club Omonoia FC

“We feel privileged to support Omonoia as it’s one of the largest teams in Cyprus, fandom size-wise, and we know it has a special connection with its supporters.”

Institutional FX

XTB’s X Open Hub adds 30 cryptos to white label offering for brokers

Its solutions include deep institutional liquidity on more than 5,000 global instruments, such as indices, shares, forex, cryptocurrencies, commodities, and ETFs, and a white label platform that can be fully customized and branded for each brokerage.

<