Chocolate Finance has launched in Hong Kong, offering spare-cash management through discretionary investment accounts run by an SFC-licensed unit.
The Singapore-based fintech operates in Hong Kong through Chocolate Finance HK Limited, which holds Securities and Futures Commission (SFC) licences for Type 1, Type 4, and Type 9 regulated activities: dealing in securities, advising on securities, and asset management. In Singapore, the company says its platform manages more than USD 1.27 billion in assets and serves over 130,000 users.
Promotional returns and withdrawals
Under its Chocolate Advantage Programme, the company advertises annual returns of 3.8% on the first HKD 100,000 (USD 13,000) and 3.5% on the next HKD 200,000 (USD 25,000). Chocolate Finance states that neither the returns nor the principal are guaranteed. The service is structured as discretionary investment accounts, meaning the company manages clients’ money on their behalf.
The promotional rates, along with withdrawals of up to HKD 50,000 (USD 6,400) a day that are usually instant, will run until 30 June 2027, or until assets in Chocolate-managed accounts reach HKD 1 billion (USD 127 million), whichever comes first. The company notes that the programme could end earlier and that withdrawals may take longer than usual.
Regulatory context in Hong Kong
The SFC has previously addressed promotional returns in investment products. In a circular issued in October 2023, it noted that intermediaries distributing SFC-authorised funds had been offering additional returns or other incentives that may divert clients from properly considering the risks of the underlying funds.
The circular highlighted the legal and regulatory requirements distributors must meet covering guaranteed returns, lock-up periods, dealing frequency, and other marketing issues. It also stated that distributors should not offer clients any gifts other than a discount on fees or charges when promoting a specific investment product. A separate circular issued the following day set out requirements for presenting annualised returns based on periods of less than one year for SFC-authorised money market funds.
