The Hong Kong Securities and Futures Commission issued a new paperless securities market guideline, with the system expected to be implemented in November.

On May 29th, the Securities and Futures Commission of Hong Kong issued guidelines to assist securities issuers in preparing for participation in the paperless securities market system. The system is expected to be implemented on November 16th this year. The announcement of the effective date of the relevant regulations for the paperless securities market has been submitted to the Legislative Council for the process of pre-legislative scrutiny. In order to strengthen issuers' understanding of the paperless securities market system and facilitate their preparation work, the SFC's new guidelines focus on explaining their responsibilities under the system and the next steps to be taken. The SFC reminds issuers that one of their main tasks is to review and revise their offering documents (such as their articles of association) to ensure compliance with the paperless securities market system. To facilitate the relevant procedures, the guidelines outline key issues to focus on and provide template provisions for issuers to refer to. Issuers must complete the revision work before the deadline, which is the first anniversary of the implementation of the paperless securities market (November 16, 2027) or the date of the first annual general meeting of shareholders held after the implementation of the paperless securities market (whichever is later). Therefore, issuers should start the process as soon as possible. In addition, after the implementation of the paperless securities market, issuers will need to appoint an approved securities registrar at all times. So far, six companies have applied to become approved securities registrars. Meanwhile, the Hong Kong Exchanges and Clearing Limited has also issued the "Guidelines for the Paperless Securities Market" today, focusing on the responsibilities of issuers under the Listing Rules in relation to the implementation of the paperless securities market.