Hong Kong’s Financial Services and the Treasury Bureau (FSTB) has published consultation conclusions and a two-phase package of measures to enhance the regulation of licensed money lenders, aimed at addressing excessive borrowing and strengthening public protection. Phase one, to be implemented in August 2026, introduces debt servicing ratio caps for unsecured personal loans for low-income earners, prohibits money lenders from requesting borrowers to provide loan referees, and requires money lending advertisements to include a Companies Registry (CR) risk warning statement. Phase two measures relating to Credit Data Smart (CDS) are scheduled to be rolled out in June 2027. The FSTB and the CR are drafting revised licensing conditions and administrative guidelines, and have discussed with the Judiciary how to update already-issued money lender licences in phases to align with the rollout. The consultation, conducted from June to August 2025, received 150 submissions and was supported by briefings for the Legislative Council Panel on Financial Affairs and sessions with the industry, professional bodies and non-governmental organisations. The FSTB plans to brief the panel in April 2026 on the consultation conclusions and details of the measures.
Financial Services and the Treasury Bureau (Hong Kong) 2026-03-13
Hong Kong Financial Services and the Treasury Bureau publishes consultation conclusions and schedules phased tightening of licensed money lender rules from August 2026
Hong Kong's Financial Services and the Treasury Bureau published consultation conclusions and a two-phase package to enhance regulation of licensed money lenders, targeting excessive borrowing and public protection. Phase one, effective August 2026, includes debt servicing ratio caps for low-income earners and mandatory risk warnings in ads. Phase two, scheduled for June 2027, involves revised licensing conditions and administrative guidelines.