Money Lenders SIS-2A Fit and Proper Criteria for Individuals

Money Lenders SIS-2A Fit and Proper Criteria for Individuals

The SIS-2A form is a supplementary declaration. An individual applicant, or each partner in a partnership, uses it to prove they satisfy the fit and proper criteria under the Money Lenders Ordinance. The Licensing Authority, the Commissioner of Police, uses this self-declaration to assess every individual who will control or manage the business. It examines their character, competence, reputation, integrity and financial soundness. Unlike the main application form, SIS-2A focuses exclusively on the individual's personal qualities and background, not the business structure or operations.

Understanding SIS-2A Money Lenders Fit and Proper Requirements

The Money Lenders Ordinance (Cap. 163) requires every licence applicant to be a fit and proper person. For individuals and partnerships, the SIS-2A form operationalises this requirement by asking for a declaration of personal history across several domains. The Licensing Authority will refuse a licence if it is not satisfied the applicant, or any partner, meets these criteria. The assessment covers criminal record, financial probity, regulatory history and general character.

Hong Kong Money Lenders SIS-2A Declaration Process

The form requires a declaration addressing each fit and proper criterion. The Licensing Authority expects full and honest disclosure. Any omission or misrepresentation can result in refusal of the licence or, if discovered later, revocation. The declaration covers these areas:

• Criminal record: Disclose any convictions, including spent or overseas ones. The Licensing Authority considers the nature and recency of any offence.
• Financial soundness: Disclose any history of bankruptcy, individual voluntary arrangements, winding-up proceedings or county court judgments.
• Regulatory history: Declare if you have ever been refused a licence, had a licence revoked, or been disqualified from holding a licence under any regulatory regime in Hong Kong or elsewhere.
• Character: Provide references and declare any adverse findings by a court or tribunal.

The form must be signed by the applicant or each partner and witnessed. Attach supporting documents such as a copy of the Hong Kong identity card or passport, proof of address and character references.

Fit and Proper Criteria for Individual Applicants

The Licensing Authority applies the criteria on a case-by-case basis. No single factor is determinative, but these areas carry particular weight:

• Integrity: Demonstrate honesty and ethical conduct. A history of regulatory breaches, professional misconduct or civil fraud will weigh against approval.
• Competence: Show you understand the obligations of a money lender under the Money Lenders Ordinance, including keeping proper books, displaying the licence and complying with interest rate caps.
• Reputation: Your standing in the community and business circles is relevant. The Licensing Authority may take up references or make enquiries with other government departments.
• Financial soundness: You must not be an undischarged bankrupt or subject to a bankruptcy petition. The Authority will also consider your financial resources and your ability to meet the business's financial demands.

SIS-2A Form for Money Lender Individual Applicants

SIS-2A is the standard document prescribed by the Licensing Authority. It is a self-declaration completed and submitted with Form 2 (for a new licence application by an individual or partnership) or Form 8 (for a renewal). The Hong Kong Police Force, which administers the Ordinance, provides the form on its website.

The form requires this information:

• Full name, date of birth and Hong Kong identity card number
• Residential address and contact details
• Details of any criminal convictions, including the date, nature of the offence and sentence
• Details of any bankruptcy or insolvency proceedings, including the date of the order and the current discharge status
• Details of any previous refusal, revocation or suspension of a money lenders licence or any other licence
• Names and contact details of two character referees who have known you for at least two years
• A declaration that the information provided is true and complete

The form must be notarised or witnessed by a person authorised to take declarations, such as a solicitor, a commissioner for oaths or a justice of the peace.

Individual Applicant Competence and Reputation

The Licensing Authority expects an applicant to demonstrate sufficient competence to run a money lending business. Formal qualifications are not necessarily required, but you must show familiarity with the legal requirements. These include the interest rate provisions, the requirement to provide statements of account and the prohibition on harassing debtors. You may also need to show you have adequate business management skills.

Reputation is assessed by your conduct in other business or professional roles. A history of customer complaints, adverse findings by a professional body or regulatory action by another government department is relevant. Your character referees are expected to provide an honest assessment of your standing.

Financial Soundness and Integrity Assessment

Financial soundness is a critical criterion. You must not be an undischarged bankrupt. If you have been discharged, the Licensing Authority will consider the circumstances and the time elapsed since discharge. You must also disclose any individual voluntary arrangement, any county court judgment against you and any history of loan default.

Integrity is assessed primarily through your criminal record disclosure. The Authority will consider the offence's nature, the sentence and the time elapsed. Offences involving dishonesty, such as theft, fraud or forgery, are particularly relevant. A conviction for a violent offence may also lead to refusal if it suggests a risk of harassing debtors.

Regulatory History and Character Requirements

You must disclose any previous involvement with licensed activities in Hong Kong or elsewhere. This includes any licence that was refused, revoked, suspended or made subject to conditions. You must also disclose if you have been disqualified from being a company director or from holding any other regulated position.

Character is assessed through the declaration itself and your character referees. Referees should be individuals who have known you in a professional or personal context for at least two years and can attest to your honesty and reliability. The Licensing Authority may contact the referees to verify the information.

Self-Declaration of Fit and Proper Status

The entire SIS-2A form is a self-declaration. You take legal responsibility for the truth of the information provided. A false declaration can constitute an offence under the Money Lenders Ordinance and may also amount to perjury. The Licensing Authority will cross-check the declaration against other information available to it, including criminal records from the Hong Kong Police Force, insolvency records from the Official Receiver's Office and regulatory records from other departments.

How to Complete SIS-2A for Individual Licence Applications

The completion process is straightforward but requires care. You should:

1. Download the SIS-2A form from the Hong Kong Police Force website or obtain it from the Licensing Office.
2. Complete all sections in full, using block capitals and black ink.
3. Attach copies of the required supporting documents, including identity proof, address proof and character references.
4. Sign the form in the presence of an authorised witness, who must also sign and stamp the form.
5. Submit the completed SIS-2A together with Form 2 or Form 8 and the other required documents.

The Licensing Authority may request further information or an interview if any aspect of the declaration is unclear. Respond promptly to any such request.

Criminal Record Disclosure in SIS-2A

The SIS-2A form requires full disclosure of all criminal convictions, regardless of whether they are spent under the Rehabilitation of Offenders Ordinance. You must include convictions from any jurisdiction, not just Hong Kong. The Licensing Authority will consider each conviction's relevance to the money lending business. Minor traffic offences that did not involve dishonesty or violence may be disregarded, but all convictions must be declared.

Undischarged Bankrupt and Other Prohibitions

An undischarged bankrupt cannot hold a money lenders licence. The Licensing Authority will refuse an application if you are an undischarged bankrupt. If you become bankrupt after the licence is granted, the licence is automatically suspended. You must also disclose if you are subject to a bankruptcy petition, a winding-up order or any similar proceedings in another jurisdiction.

Additional Considerations for Partners

In a partnership, each partner must complete a separate SIS-2A form. The Licensing Authority assesses each partner independently. If any partner fails the fit and proper test, the entire partnership application will be refused. Partners should ensure all partners meet the criteria before submitting the application.