ML-ATP-3 termination of appointed third party

Understanding the ML-ATP-3 Termination of Appointed Third Party

The ML-ATP-3 termination of appointed third party is the statutory form a licensed money lender uses to notify the Commissioner of Police that an appointed third party's services have ended. Under the Money Lenders Ordinance (Cap. 163), a money lender must disclose any third party appointed to carry out functions for its licensed business. When that appointment ends, the money lender files form ML-ATP-3 to record the termination with the licensing authority.

Money Lender Third Party Termination Form

Form ML-ATP-3 is the specific document for this purpose, not a general notification. It records the end of a third party's appointment and requires the money lender to state the effective termination date, the reason for termination, and confirm a final settlement with the appointed third party. The lender must also confirm all records held by the third party were returned or properly disposed of under licensing conditions.

Submit the form to the Licensing Office of the Commissioner of Police, which administers the Money Lenders Ordinance. Retain a copy for your records. The Commissioner may request it during an inspection or compliance review.

ML-ATP-3 Hong Kong

In Hong Kong, form ML-ATP-3 is part of a suite governing the relationship between a licensed money lender and any engaged third party. The ML-ATP series includes ML-ATP-1 (initial disclosure), ML-ATP-2 (change of particulars), and ML-ATP-3 (termination). All three are filed with the Commissioner of Police under the same regulatory framework of the Money Lenders Ordinance.

The form is available from the Hong Kong Police Force website or the Licensing Office. Complete it in English or Chinese and fill all fields accurately. Incomplete submissions may be rejected, delaying the formal recognition of the termination.

End Third Party Appointment Money Lender

Ending a third party appointment starts with an internal decision to terminate the contract. The money lender must settle all outstanding obligations with the third party, including the return of any customer data, loan documents, or other materials held by the third party.

Once final settlement is confirmed, complete form ML-ATP-3. The form requires the money lender's name and licence number, the third party's name and identification details, the effective termination date, and the reason for termination. Common reasons are expiry of the appointment term, mutual agreement, or removal for cause.

The money lender must sign and submit the form to the Commissioner of Police within a reasonable time after the termination takes effect. The Money Lenders Ordinance does not specify a strict deadline for filing ML-ATP-3, but licensing conditions typically require prompt notification. A delayed submission may be viewed as a compliance failure.

Hong Kong Money Lenders Ordinance Termination

The legal basis for this notification is the Money Lenders Ordinance (Cap. 163) and the licensing conditions on each money lender. The Ordinance requires a money lender to obtain prior approval from the Commissioner of Police before appointing a third party. By extension, the Commissioner must be informed when that appointment ends to keep the official record accurate.

Failure to notify the Commissioner of a termination could make the money lender liable for any actions the third party takes after the appointment ends. The Commissioner may also treat the omission as a breach of licensing conditions, leading to enforcement action, including licence suspension or revocation.

Compliance Requirements for Form Submission

Submitting form ML-ATP-3 is a regulatory requirement, not a discretionary step. Treat it with the same importance as the initial third party disclosure. An authorised person, such as a director or compliance officer, should complete the form to confirm the information's accuracy.

Update your internal records to reflect the termination. Remove the third party from all lists of approved service providers. Ensure no further business is conducted through that third party after the effective date.

Record Keeping After Termination

After filing form ML-ATP-3, retain a copy of the form with any supporting documents, such as the termination agreement or correspondence with the third party. The Money Lenders Ordinance requires money lenders to keep records for at least seven years. The Commissioner of Police or other authorised officers may inspect these records during a compliance audit.

Ensure the third party has destroyed or returned all customer data and loan files in accordance with the Personal Data (Privacy) Ordinance. A confirmation letter from the third party verifying this destruction or return is a prudent addition to the file.

Post-Termination Obligations

The money lender remains responsible for the third party's actions taken while the appointment was in force. Termination does not absolve the lender of liability for the third party's conduct during that period. Conduct a final review of the third party's performance. Resolve any complaints or disputes before formalising the termination.

If a replacement third party is later appointed, a new form ML-ATP-1 must be filed. The termination of one third party does not automatically authorise the appointment of another. Each appointment requires separate approval from the Commissioner of Police.