Money Lenders SIS-2 Supplementary Information for Individuals

What the Money Lenders SIS-2 Supplementary Information for Individuals Covers

The Money Lenders SIS-2 supplementary information form supports a licence application under the Money Lenders Ordinance (Cap. 163). It is required for individuals and partnerships. The licensing authority uses the form to assess an applicant against the fit and proper criteria, gathering data on personal finances and business background. SIS-2 is not the main application; that is Form 2. The form focuses on the applicant's financial standing, source of funds, and business experience. Complete it fully. Omissions will delay your application or lead to refusal.

SIS-2 Money Lenders Supplementary Information: When It Is Required

SIS-2 is compulsory for any individual or partnership applying for a money lender licence in Hong Kong. The licensing authority requires it to verify you have the financial resources and business experience to operate lawfully. Company applicants use the separate SIS-1 form. A partnership must submit one SIS-2 per partner. Even when partners apply jointly under a single name, each partner's details must still be disclosed.

Hong Kong Money Lenders SIS-2: Who Must Provide It

Every individual applicant must submit a SIS-2. In a partnership, each natural person partner must complete the form. A partner that is a body corporate must submit Form 3 and SIS-1 instead. This requirement applies to sole proprietors and general partnerships. Limited partners under the Limited Partnerships Ordinance (Cap. 37) are not automatically exempt. The licensing authority may still request SIS-2 from a limited partner who exercises control over the business.

Supplementary Information for Individual Application: Financial Resources Section

The financial resources section requires a declaration of your net worth, assets, and liabilities. You must list bank deposits and cash equivalents; real property, with estimated market value and any mortgages or charges; investments in shares, bonds, or other securities; vehicles, jewellery, or other valuable personal assets; and outstanding loans, credit card debts, guarantees, and other liabilities.

Calculate net worth as total assets minus total liabilities. The licensing authority uses this to assess if you can sustain the business without illegal funding. A negative net worth or unexplained wealth will trigger a request for further evidence.

SIS-2 Form Money Lender Individual: Source of Funds Declaration

You must provide a detailed explanation of the funds that will capitalise the business. State the origin of each capital contribution, for example personal savings from employment or business income; inheritance or gifts, stating the donor's identity and relationship; sale of assets, with supporting documents; or loans from licensed banks or other regulated financial institutions.

The licensing authority cross-checks this information against your declared net worth and credit history. Any discrepancy may lead to a request for supplementary evidence or an interview.

Business Plan and Compliance Measures

Every SIS-2 must include a business plan describing your intended lending activities. The plan should cover target customer segments; maximum loan amount and repayment terms; interest rate structure and its compliance with the Money Lenders Ordinance (Cap. 163) maximum rate of 60% per annum effective APR; marketing and lead generation methods; and debt collection procedures, including any use of third-party agents.

The compliance measures section requires you to confirm you have adequate systems to verify borrower identity using the prescribed forms; issue receipts and statements as required by the Ordinance; maintain proper accounting records for at least seven years; and report suspicious transactions to the Customs and Excise Department as required under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).

Business Experience and Credit History

Disclose any business experience in financial services. This includes previous employment, directorships, or partnerships in licensed money lending, banking, securities, or insurance. The licensing authority assesses your competence to manage a regulated business. A lack of experience can be offset by a detailed business plan and confirmed compliance measures, but the application may face additional review.

The credit history section requires you to declare any bankruptcy proceedings, current or past; individual voluntary arrangements (IVAs) or debt restructuring; County Court judgments (CCJs) or other unsatisfied judgments in Hong Kong or elsewhere; or defaults on loans or credit card debts.

A poor credit history does not mean automatic disqualification. The licensing authority will weigh it against your financial resources and business plan. You must explain the circumstances of any adverse credit events.

Supporting Documents Required

Submit the SIS-2 with these supporting documents: a copy of Hong Kong identity card or passport for each individual applicant; recent proof of residential address, such as a utility bill or bank statement (within three months); audited financial statements or management accounts for your business, if any; bank statements for the past six months for all accounts used to fund the business; a copy of the business registration certificate (BRC) if you are already operating a business; and any licence or permit from the Securities and Futures Commission, Insurance Authority, or other regulator, if held.

Documents must be in English or Chinese, or have a certified translation. Originals or certified true copies must be produced on request.

Submission and Processing

Submit the completed SIS-2 and supporting documents with Form 2 to the Money Lenders Licensing Office at the Companies Registry. The licensing authority may request more information or an interview. There is no statutory deadline for processing. Incomplete applications are returned for resubmission. Fee information is not stated here; check the current schedule on the Companies Registry website.