Reminder of effective dates of new requirements under the Securities and Futures (Financial Resources) (Amendment) Rules 2018

12 Dec 2018

This circular reminds all licensed corporations (LCs) of the effective dates of the different sections of the Securities and Futures (Financial Resources) (Amendment) Rules 2018, which was gazetted on 19 October (Note 1) and laid on the table of the Legislative Council meeting on 24 October. The scrutiny period expires today, marking the completion of the enactment process.

(1)         New requirements to be effective on 1 January 2019

Sections 1, 2, 3(2) to (4) and 30 of these amendment rules (Note 2) will come into operation on 1 January 2019.

(2)         New requirements to be effective on 1 April 2019

With the exception of the sections mentioned above, the other sections will come into operation on 1 April 2019.  

LCs are reminded to implement necessary changes to their reporting systems and procedures to comply with all the requirements.

Should you have any questions regarding the contents of this circular, please contact Ms Jacquline Yip at 2231 1530 or the case officer in charge.

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission




1.  On 19 October 2018, the Securities and Futures Commission published the Conclusions to Further Consultation on Proposed General Changes to Update the Securities and Futures (Financial Resources) Rules.

2.  In light of a new accounting standard coming into effect on 1 January 2019, these provisions will enable an LC to exclude from the calculation of ranking liabilities the amount of liability arising from a tenancy agreement entered into by it in respect of any premises used for carrying on regulated activity, up to the amount of assets arising from the same tenancy agreement which is not included in its liquid assets. This amount of liability will also be excluded from the LC’s variable required liquid capital calculation.

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Page last updated : 12 Dec 2018