2. Who is required to obtain a pawnbroker’s licence?

2. Who is required to obtain a pawnbroker’s licence?

Any person who carries on a business by advancing on interest, or for or in the expectation of profit, gain or reward, any sum of money on the security of goods taken by such person in pawn requires a licence granted by the Commissioner of Police. 

It is a criminal offence to carry on a business as a pawnbroker without a valid licence. The maximum penalty is a fine of HK$50,000, and imprisonment for 2 years. 

The Pawnbrokers Ordinance (Cap. 166) does not apply to certain loans by a pawnbroker, or the goods pawned as security for that loan, or to that pawnbroker or borrower in relation to that loan or the goods which are pawned as security where:- 

1. The loan by the pawnbroker is more than the sum specified in the First Schedule to the Pawnbrokers Ordinance (Cap. 166) (currently HK$100,000); or
2. Two or more loans are made by the pawnbroker to a borrower on the security of the same goods which are pawned to the pawnbroker and the total amount of principal outstanding on all such loans exceeds the sum specified in the First Schedule to the Pawnbrokers Ordinance (Cap. 166)  (currently HK$100,000) at any time. 

Loans that exceed the sum specified in the First Schedule to the Pawnbrokers Ordinance (Cap. 166) do not enjoy the rights or protection provided by the Pawnbrokers Ordinance (Cap. 166) and are subject to the control and regulation under the Money Lenders Ordinance (Cap. 163).