On 21 Mar 2025, the HKMA increased the customer limit for non-locally incorporated authorized institutions providing Southbound Scheme services under the Cross-boundary WMC from 1,000 to 3,000 per institution with immediate effect. The amendment supersedes the May 2024 guidance, while maintaining all other requirements including customer referral by head office, prohibition on retail marketing, and mandatory investor protection measures for non-private banking clients.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Regulatory Change Implementation
On 21 Mar 2025, the Hong Kong Monetary Authority (HKMA) issued a circular increasing the customer limit for non-locally incorporated authorized institutions (AIs) providing Southbound Scheme services under the Cross-boundary Wealth Management Connect Pilot Scheme (Cross-boundary WMC) from 1,000 to 3,000 customers per institution, effective immediately. This amendment supersedes the HKMA’s Circular of 31 May 2024 and applies to non-private banking customers served through Hong Kong branches of such institutions.
Revised Requirements and Policy Context
The revised requirement (iii) specifies that non-locally incorporated AIs must not exceed 3,000 customers for Southbound Scheme services to non-private banking customers, with robust controls to ensure compliance. Other requirements remain unchanged: (i) customers must be referred by the AI’s head office and only accepted when the AI is the Mainland partner bank; (ii) no retail banking marketing in Hong Kong is permitted; (iv) investor protection measures for non-private banking customers must align with HKMA’s existing retail banking standards; and (v) prior notification to HKMA via email to
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