The Securities and Futures Commission (SFC) today published updated codes and guidelines for implementing the new Type 13 regulated activity (RA 13) regime governing public fund depositaries, which will take effect on 2 October 2024 (Note 1).

To facilitate the transition for existing practitioners, the SFC has processed their applications and will grant RA 13 licences or registrations to 19 depositaries under major banking or insurance groups operating in Hong Kong and over 300 of their staff members on the launch date (Note 2 and Note 3).

Under the new regime, depositaries of SFC-authorised collective investment schemes (CISs) operating in Hong Kong are required to be licensed by or registered with the SFC to conduct RA 13 (Note 4).

"Bringing depositaries of CISs under the new RA 13 regime forms a vital part of the SFC’s strategy to enhance our regulation of public funds, with an aim to align with international practice and enhance investor protection," said Ms Julia Leung, the SFC’s Chief Executive Officer. "In collaboration with our industry partners and stakeholders, this key building block will help strengthen Hong Kong’s position as an international asset and wealth management hub."

Depositaries licensed or registered for RA 13 must comply with applicable conduct and regulatory requirements, similar to licensed corporations or registered institutions for other regulated activities.

The updated codes, guidelines and other regulatory information are now accessible on the SFC website (Note 5) and will take effect from 2 October 2024.

Notes:

1. This follows the completion of the legislative process for introducing RA 13 into the Securities and Futures Ordinance on 17 May 2023. To facilitate a smooth transition, the SFC issued a circular on 27 July 2023 inviting depositaries operating in Hong Kong to submit their RA 13 applications ahead of the new regime, and guided the industry on the scope of RA 13 and the transitional arrangements. It also explained the RA 13 regulatory framework through industry seminars, and has actively discussed with industry participants to address their issues and clarify the requirements. 
2. The 19 depositaries to be licensed or registered for RA13 (in alphabetical order) are:
   1. AIA Company (Trustee) Limited
   2. Bank Consortium Trust Company Limited
   3. Bank of Communications Trustee Limited
   4. Bank of East Asia (Trustees) Limited
   5. BNP Paribas
   6. BOCI-Prudential Trustee Limited
   7. Brown Brothers Harriman Trustee Services (Hong Kong) Limited
   8. CCB (Asia) Trustee Company Limited
   9. China Life Trustees Limited
   10. Cititrust Limited
   11. CMB (HK) Trustee Company Limited
   12. CMB Wing Lung (Trustee) Limited
   13. DB Trustees (Hong Kong) Limited
   14. HSBC Institutional Trust Services (Asia) Limited
   15. ICBC (Asia) Trustee Company Limited
   16. Principal Trust Company (Asia) Limited
   17. Standard Chartered Trustee (Hong Kong) Limited
   18. State Street Bank and Trust Company
   19. State Street Trust (HK) Limited