Greater scrutiny of financial institutions and contactless credit card payments is now the norm against the backdrop of increasing cybersecurity threats. While financial institutions are clearly subject to stringent regulations on their handling of customer data and money and security obligations, there was no control over new entrants to this market, whose main sphere of activity is non-financial, nor was there any control over the way they could conduct their payment activities. Customer information held by these companies, and money stored on their facilities, are just as vulnerable (maybe even more so) to theft and cyber attacks as is the data held by financial institutions. It no longer made sense to leave this area unregulated.

On 13 November 2015, the new regulatory regime for stored value facilities and retail payment systems came into operation under the Payment Systems and Stored Value Facilities Ordinance (formerly the Clearing and Settlements System Ordinance). The Payment Systems and Stored Value Facilities Ordinance introduces new regulations for all non-financial institutions that issue and operate certain payment systems, which will now be under the scrutiny of the Hong Kong Monetary Authority.

Get the Full Update

Originally published on 10 December 2015

Visit us at www.mayerbrownjsm.com

Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2015. The Mayer Brown Practices. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.