New | Hong Kong regulator may buy own property to save on rent
“In a digital era, the SFC can now communicate with brokers or fund managers by the internet. Having an office in Central may be prestigious but is not necessary for a regulator” Cushman & Wakefield
The Securities and Futures Commission is reviewing whether it should it should buy its own property and may move out of Hong Kong’s iconic Central business district where it is renting prime office space in the Cheung Kong Centre, where its lease began in 2012 and could end in 2017.
SFC chairman Carlson Tong Ka-shing told lawmakers in a financial affair panel monthly meeting that it may buy their own office after several lawmakers criticised the regulator for the high level of its reserves. “We are studying if we should buy so as to save our rental payment for the longer term,” Tong said.
The SFC spent HK$248.22 million for its premises in the financial year starting from April, accounting for about 15 per cent of its annual expenditures. Tong said the lease in Cheung Kong Centre has an option to end it in 2017 or 2020. “We may consider some offices away from Central which would be cheaper and are suitable for the back offices,” Tong said.
Legislator Chan Kam-lam supported the idea.
“The SFC reserve is too high. Buying its own office could be a good idea but it should buy properties away from Central as they would be cheaper,” Chan said. The SFC reserve will hit HK$7.4 billion in March 2015, and is estimated to stand at HK$6.67 billion in March next year.
Other financial firms have moved out of Central to escape the high rent. Insurers Manulife has moved to Kwun Tong, while Citibank bought new offices in East Kowloon. The Mandatory Provident Fund Schemes Authority and some investment banks moved across the harbour to West Kowloon.
