Management Summary
- Purpose / Background: The HKMA has announced an increase in various licence fees payable under the Banking Ordinance (Cap. 155), following the Legislative Council's passage of a resolution on 8 July 2026.
- One-line conclusion: Statutory licence fees for Authorized Institutions (AIs), Local Representative Offices, and Approved Money Brokers have been increased effective 10 July 2026.
- Key Changes:
- Amendment to the Second Schedule of the Banking Ordinance.
- Upward adjustment of fees under sections 19(1)-(2), 20(5), 45(1)-(3), 48(1)-(4), 51(1)-(2), and 118F(1)-(2).
- Scope covers initial licensing, ongoing annual fees, and other administrative banking licence charges.
- Key Dates / Deadlines: Effective date is 10 July 2026 (date of Gazette publication).
- Applicability / Impact scope: All Authorized Institutions (AIs), Local Representative Offices, and Approved Money Brokers operating in Hong Kong.
- Recommended management actions:
- Update finance and procurement systems to reflect the new fee schedules.
- Review internal budgets to account for the increased regulatory expenditure.
- Verify updated payment obligations against the amended Second Schedule in the Gazette.
- Notify relevant accounting/finance departments to ensure accurate fee remittances for upcoming billing cycles.
Detailed Summary
1) Document overview
This circular confirms the legislative amendment to the Second Schedule of the Banking Ordinance (Cap. 155), formalizing an increase in regulatory licence fees as passed by the Legislative Council on 8 July 2026.
2) Main requirements
- Institutions must comply with the revised fee structure stipulated in the amended Second Schedule.
- The adjustments apply to sections of the Ordinance governing licensing and registration maintenance:
- Sections 19(1) to (2) (Licence applications/fees).
- Sections 20(5) (Annual fees).
- Sections 45(1) to (3) (Representative offices).
- Sections 48(1) to (4) & 51(1) to (2) (Various registration/licensing categories).
- Sections 118F(1) to (2) (Approved Money Brokers).
3) Key changes
- The resolution facilitates a statutory increase in fees payable to the HKMA.
- The amendment is immediate, having been gazetted on 10 July 2026.
4) Important dates & transition
- Passed by LegCo: 8 July 2026.
- Gazetted/Effective Date: 10 July 2026.
- Transition: There is no grace period; the new fee rates apply from the effective date of 10 July 2026.
5) Impact and risks
- Financial Impact: Direct increase in regulatory compliance costs for all regulated entities.
- Operational Impact: Finance departments must update payment templates and budgetary forecasts to avoid underpayment of regulatory fees.
6) Compliance action checklist
- [ ] Review the amended Second Schedule attached to the circular.
- [ ] Update finance/treasury software with the new fee amounts for relevant Banking Ordinance sections.
- [ ] Flag the increase in the FY2026 budget to ensure sufficient funds are allocated for regulatory renewals.
- [ ] Reach out to the listed HKMA contacts (Ms. Shirley Ho or Mr. Ian Au) if specific fee category clarification is required.
7) Appendices/attachments summary
- Annex (Amended Second Schedule): Provides the comprehensive list of revised monetary values for fees associated with specific sections of the Banking Ordinance. It serves as the definitive reference for the new fee schedule applicable to all affected institutions.