On 07 Aug 2024, the HKMA revised the Securities Return template to standardize reporting for SFO-registered authorized institutions on securities-related activities. The update introduces refined fields for emerging services like automated trading and depositary services, while maintaining existing requirements for transaction volumes, income, and activity types. The revised template must be submitted within 21 days after each June/December reporting period.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 07 Aug 2024, the Hong Kong Monetary Authority (HKMA) issued a revised template for the Return of Securities Related Activities (Securities Return), updating the reporting requirements for authorized institutions registered under the Securities and Futures Ordinance (SFO). The revision standardizes data collection for securities-related activities without introducing new regulatory obligations.
Purpose and Scope
The revised Securities Return template mandates authorized institutions to report detailed information on regulated activities under the SFO, including dealing in securities (Type 1), dealing in futures contracts (Type 2), advising on securities (Type 4), advising on futures contracts (Type 5), advising on corporate finance (Type 6), providing automated trading services (Type 7), asset management (Type 9), credit rating services (Type 10), and depositary services (Type 13). The return covers the 6-month period ending June or December and must be submitted within 21 days after the reporting period, or the next working day if a public holiday falls on the deadline.
Key Reporting Changes
The revised template introduces updated fields to capture evolving activities, including specific metrics for Type 7 (Automated Trading Services) such as the number of accounts and transaction volumes for securities/futures, and Type 13 (Depositary Services) requiring aggregate net asset value of collective investment schemes. It also refines existing sections for asset management (Type 9) to distinguish between discretionary and non-discretionary accounts, and adds detailed breakdowns for equity-linked instruments, collective investment schemes, and underwriting activities. The template maintains the requirement to report transaction channels (e.g., internet, manned channels) and income by activity type.
Submission Requirements
Institutions must complete the return in accordance with HKMA's completion instructions, ensuring all requisite information is provided accurately. The return must be certified by the Chief Accountant and Chief Executive, with contact details for queries. The template explicitly states that information is required under Section 63(2) of the Banking Ordinance, and non-compliance may result in regulatory action. The revised template replaces the previous version effective immediately upon issuance.
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