Completing Form 4 Supporting Statement for an Individual or Partnership Money Lenders Licence

The Purpose of Money Lenders Form 4

The money lenders form 4 is the supporting statement for an individual or partnership applying for a money lenders licence in Hong Kong under the Money Lenders Ordinance (Cap. 163). This document requires evidence of your financial standing, character, and business experience. The Registrar of Money Lenders uses Form 4 to assess if you meet the fit and proper test for a licence.

Form 4 applies only to individuals and partnerships. A company applicant uses Form 5. For a licence renewal, individuals and partnerships use Form 8.

How to Complete Form 4 Money Lenders Supporting Statement

The form 4 money lenders supporting statement gathers personal information, financial history, criminal record declarations, and references. Complete every section accurately and attach all requested documents.

Personal Particulars and Identification

Provide your full name in English and Chinese, Hong Kong identity card number, residential address, and contact details. Partnerships must supply these details for every partner, including the proposed responsible officer.

Financial Standing and Net Worth

The hong kong money lenders form 4 demands a declaration of your financial standing. State your total assets, liabilities, and net worth. The Registrar will look for proof you have enough capital to run the business without using client funds. You may need audited financial statements, bank statements, or a sworn statement of assets.

For a partnership, each partner submits their own financial statement. The partnership's combined net worth must meet the threshold in the Money Lenders Ordinance.

Criminal Record and Convictions

Declare any criminal convictions, including spent ones. The Registrar will verify this against police records. A conviction for an offence involving dishonesty, fraud, theft, or forgery, will likely disqualify you. You must also disclose if you are an undischarged bankrupt or have entered into a voluntary arrangement with creditors.

Business Experience and References

The supporting statement for individual money lender requires a description of your business experience in financial services or money lending. Provide the names and contact details of two character references. These referees must have known you for at least two years and can attest to your honesty and financial integrity. They cannot be relatives or employees of your proposed business.

Fit and Proper Test

The Registrar applies a fit and proper test to every applicant. Factors considered include:

• Any conviction under the Money Lenders Ordinance
• Any licence refusal in another jurisdiction
• Your financial standing
• Your business experience to operate responsibly

Supplementary Information

You must also complete the supplementary information form SIS-2 for individuals or partnerships. This form collects details on your business plan, proposed lending practices, and compliance procedures. The SIS-2A is a separate form demonstrating your fit and proper status through declarations about your financial history and character.

Form 4 Partnership Money Lender

When a partnership applies, each partner must submit a separate form 4 partnership money lender supporting statement. The partnership also completes the main application form (Form 2). The Registrar assesses each partner individually against the fit and proper criteria. If one partner fails, the entire partnership application may be refused.

The partnership must nominate a responsible officer to manage daily operations. That officer must detail their business experience and be available for an interview with the Registrar.

Where to Verify the Requirements

The Money Lenders Ordinance (Cap. 163) and associated regulations provide the legal framework. The Licensing Office of the Hong Kong Police Force administers the regime. Obtain the current Form 4 and guidance notes from the Hong Kong Police website or the Companies Registry website. The guidance notes specify required attachments like proof of address, certified identity card copies, and police clearance certificates.

Common Mistakes to Avoid

• Submitting an incomplete form. Answer every question. Write "N/A" if a section does not apply.
• Failing to disclose convictions. The Registrar checks police records. Non-disclosure is a separate offence.
• Providing insufficient financial evidence. Bank statements and audited accounts must be current, within the last three months.
• Using unqualified referees. References must be from individuals who are not relatives and do not work for your proposed business.
• Ignoring the fit and proper test. Strong finances are not enough. A poor character reference or a history of business disputes can lead to refusal.