(b)
(c)
8
special purpose vehicles (SPVs) whose principal business consists, or will consist, of the issue or facilitating the issue of MPCs would be allowed to apply for authorisation as a restricted licence bank or deposit- taking company for the principal purpose of being approved to issue or facilitate the issue of MPCs; and
the Monetary Authority (MA) would be given a discretionary power to declare a stored value card not to be an MPC.
In applying these criteria, it is the MA's intention that only licensed banks would be allowed to issue "general purpose" MPCs (i.e. those which are not related to the provision of particular goods and services).
The cards to be issued by SPVs would be more limited in scope under guidelines to be developed by MA in consultation with the various interested parties.
The proposal to restrict the issue of general purpose MPCs to licensed banks was in line with the regulatory inclination of other overseas countries including those in Europe and Singapore, the spokesman added.
On money brokers, the spokesman said the proposal to introduce a formal authorisation regime for the money brokers was in response to the request by the Hong Kong Foreign Exchange and Deposit Brokers Association (HKFEDBA) and the Hong Kong Association of Banks for a formal approval system to supplement self regulation by HKFEDBA.
"A formal approval regime will help ensure that the highest standards of integrity and fair dealing are observed by the money brokers.
"This is crucial for an orderly and efficient interbank foreign exchange and money market as befits an international financial centre like Hong Kong," said the spokesman.
The proposed framework would prohibit any person from acting as a money broker unless he is approved by MA under the ordinance.
MA would be empowered to approve or revoke the approval of a broker on the basis of a set of fit and proper criteria specified in a schedule to the Ordinance. The main approval criteria include fitness and propriety of the management, financial soundness, prudent conduct and adequacy of accounting and control systems.