SFC to adopt fee limits for approved securities registrars under uncertificated securities market regime
The Securities and Futures Commission (SFC) today published consultation conclusions on the limits for three types of fees that an approved securities registrar (ASR) may charge investors following the launch of the uncertificated securities market (USM) regime (Note 1).
Respondents to the consultation were generally supportive of the proposed fee limits as well as the USM initiative. The SFC will now proceed to incorporate the limits in the ASR Code.
During the consultation, the SFC received a total of 11 submissions from industry associations, an intermediary and several individual investors (Note 2). Among their key comments, respondents considered that the fee limits establish a fair and transparent fee structure, protect small shareholders' interests, and make it easy for investors to estimate expenses, while also facilitating the development of USM and the securities market.
“The conclusion on ASR fee limits marks a critical milestone on the road towards USM implementation, as it will facilitate various stakeholders’ consideration of their own fee structures under USM and enable discussions with relevant parties,” said Mr Rico Leung, the SFC's Executive Director of Supervision of Markets. “The SFC is progressing as planned to launch the USM regime in early 2026.”
The SFC has updated its dedicated USM webpage to include information about the limits in the sections on “frequently asked questions” and “list of consultation papers”.
In the coming months, it will continue to collaborate with Hong Kong Exchanges and Clearing Limited and the Federation of Share Registrars Limited to raise stakeholders’ awareness and enhance understanding of the new regime.
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Notes:
1.The fees are: the facility set-up fee for investors to hold and manage uncertificated securities; dematerialisation fee; and fee for processing and registering securities transfers. For details of the final limits, see Annex 2 of the Consultation Conclusions Paper.
2.The two-month consultation lasted from 24 February 2025 to 23 April 2025.
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