On May 29, 2026, the Securities and Futures Commission ("SFC") published guidance for issuers preparing for the uncertificated securities market ("USM") regime, launching on 16 November 2026. Issuers must amend terms by 16 November 2027, and six companies have applied to become approved registrars. The Stock Exchange also released a guide.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SFC Regulation of Virtual Asset Trading Platforms: The Emerging Hong Kong Framework
SFC proposes new regulation of virtual assets through licensing of operators of cryptocurrency and other digital asset trading platforms
Market Misconduct Tribunal: A Guide to Penalties and Other Consequences for Misuse of Insider Information
Market Misconduct Tribunal proceedings for mishandling of insider information can result in fines and disgorgement orders
SPOTLIGHT ON
FAMILY OFFICES
On May 29, 2026, the Securities and Futures Commission ("SFC") published a Guidance Note to assist securities issuers with preparing to participate in the uncertificated securities market ("USM") regime, which is targeted for launch on 16 November 2026.
SFC Guidance Objectives
Aiming to enhance issuers’ understanding of the USM regime and facilitate their preparation, the SFC’s new guidance highlights their obligations under the regime and the next steps they need to take.
Amendment of Terms of Issue
Issuers are reminded that a key step for them is to review and amend their terms of issue (such as their articles of association) to ensure consistency with the USM regime. Issuers will need to complete their amendment exercise by the first anniversary of USM launch (ie, by 16 November 2027) or by the date of their first annual general meeting after USM launch, whichever is later.
Securities Registrar Requirements
Additionally, upon implementation of USM, issuers will be required to have an approved securities registrar at all times. To date, six companies have applied to become approved securities registrars.
Stock Exchange Guidance
In parallel, the Stock Exchange of Hong Kong Limited also released a Guide on the Uncertificated Securities Market today, focusing on issuers’ obligations under the Listing Rules in relation to USM implementation.
Legislative and Administrative Notes
A commencement notice to bring the USM-related legislation into effect was tabled before the Legislative Council on 6 May 2026 for negative vetting. For details of the applicants, and the scope of services they have applied to provide, please refer to the SFC’s website. For more details, please refer to Hong Kong Exchanges and Clearing Limited’s website.
View the full article:Source
