SFC proposes registrar fee limits under uncertificated securities market regime

The Securities and Futures Commission has launched a consultation on proposed limits for three types of fees that an approved securities registrar (ASR) may charge under the upcoming uncertificated securities market (USM) regime in Hong Kong.

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, the SFC said in a statement on Monday.

The main reason for proposing limits on these fees is to provide a degree of protection to investors since they are not in a position to negotiate the fees, the watchdog said, adding that aligning the charging basis will help simplify processes and avoid confusion for the market.

In developing the limits, the SFC has sought to strike a balance among the costs shared by different stakeholders and maintain reasonable fees for investors, it said. This will encourage investors’ early participation in USM and also ensure ASRs’ businesses remain commercially viable, the commission said.

The SFC encourages interested parties to provide feedback to the proposals during the consultation period, which will end on 23 April 2025. Subject to the legislative process of USM-related subsidiary legislation and the market readiness, the SFC targets to implement the USM regime in early 2026.
STAFF REPORTER