6 October 2003

Dear Sir / Madam,

Board Resolution for Application to Become a Registered Institution (RI) under the Securities and Futures Ordinance

We have brought to your attention in the September 2003 issue of the HKMA Quarterly Bulletin and our circular "New Publications of the Securities and Futures Commission (SFC) and the HKMA" to all RIs dated 21 August 2003 that the SFC's RI application form requires a declaration that the board of directors of the applicant has passed a resolution approving the application.

In respect of the above requirement, the SFC has recently published in the Frequently Asked Questions¹ on its public website that it would be acceptable if the board of directors has passed a resolution approving/authorizing a specified committee or person to approve the RI application and that committee or person has so approved the application.

The above flexibility would hopefully reduce the time required for authorized institutions to prepare for their RI applications. I would like to take this opportunity to remind all RI applicants that they should raise any questions in relation to their RI and executive officer applications with the HKMA at an early stage in order to avoid undue delay in the application process.

Yours faithfully,

Raymond Li
Executive Director (Banking Development)

1. Refer to question 19.10 of the SFC Frequently Asked Questions on licensing matters under the Securities and Futures Ordinance at www.hksfc.org.hk.