Hong Kong's Financial Services and the Treasury Bureau gazettes six regulations to implement the uncertificated securities market regime

Hong Kong's Financial Services and the Treasury Bureau has gazetted six pieces of subsidiary legislation setting out the detailed operational and regulatory framework for the uncertificated securities market (USM) regime, which is intended to remove the need for paper documents to evidence and effect transfers of legal title to securities. The package is positioned as supporting market efficiency and infrastructure, and improving investor protection and transparency. The instruments comprise the Securities and Futures (Uncertificated Securities Market) Rules, the Securities and Futures (Approved Securities Registrars) Rules, amendments to the Securities and Futures (Stock Market Listing) Rules and the Securities and Futures (Open-ended Fund Companies) Rules, and two amendments to the Securities and Futures Ordinance schedules (Schedule 8 and Schedule 5). The Bureau noted the arrangements were developed with industry input alongside the Securities and Futures Commission, which also conducted market consultations on the USM subsidiary legislation, codes and guidelines and published consultation conclusions in July. The subsidiary legislation will be tabled before the Legislative Council for negative vetting on February 19. Subject to vetting, commencement will be on a date to be appointed by the Secretary for Financial Services and the Treasury by Gazette notice.