On February 24, 2025, the Securities and Futures Commission ("SFC") proposed limits on three types of fees that approved securities registrars ("ASRs") can charge under the upcoming uncertificated securities market ("USM") regime. The proposed limits aim to protect investors, simplify processes, and ensure commercial viability for ASRs. Feedback is encouraged until April 23, 2025, with implementation targeted for early 2026.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 24, 2025, the Securities and Futures Commission ("SFC") introduced a consultation on potential fee caps for three types of fees associated with an approved securities registrar ("ASR") operating under the forthcoming uncertificated securities market ("USM") regime in Hong Kong.
The fees in question include the facility set-up fee for investors to hold and manage uncertificated securities, the dematerialisation fee, and the fee for processing and registering securities transfers.
The primary objective behind proposing these fee limits is to safeguard investors, who may not have the capability to negotiate fee rates. Furthermore, aligning the fee structure aims to streamline market processes and eliminate confusion.
The SFC seeks to balance costs among various stakeholders while ensuring that investor fees remain reasonable. This strategy is intended to foster early investor participation in the USM and sustain the viability of ASRs' businesses.
The SFC invites interested parties to submit their feedback on the proposed fee limits during the consultation period, which concludes on April 23, 2025.
Pending the legislative process for USM-related subsidiary legislation and market readiness, the SFC aims to implement the USM regime by early 2026.
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