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What is a licence under Securities and Futures Commission (SFC)?

SCF formulates 10 types of licences based on a range of regulated activities:

  1. Dealing in securities
  2. Dealing in futures contracts
  3. Leveraged foreign exchange trading
  4. Advising on securities
  5. Advising on futures contracts
  6. Advising on corporate finance
  7. Providing automated trading services
  8. Securities margin financing
  9. Asset management
  10. Providing credit rating services

You need a licence, if you are in such circumstances:

  • not an authorized financial institution
  • corporation conducting business in a regulated activity above in Hong Kong
  • A corporation actively marketing whether by yourself or another person on your behalf and whether in Hong Kong or from a place outside Hong Kong, to the public any services that you provide, which would constitute a regulated activity if provided in Hong Kong
  • An individual performing a regulated function for your principal which is a licensed corporation relating to a regulated activity carried on a business

Advantages to acquire a SFC licence

The licensees are allowed to actively take part in the investment of the international capital market to increase the available selections for investment and seize the opportunities abroad. In addition, the company with the licence is able to add the services programs such as assisting with the overseas clients to manage the capital, which can boost the company's competitiveness.

Requirements for applicants

  • at least two managers as licensees and one of hem is chief executive
  • opening accounts in Hong Kong banks
  • owning a real office
  • sufficient capital to assure the company operation
  • time required ranges from 6 to 10 months

Requirements for licensees

  • depositing capital of clients separately
  • remaining off the record of financial solvency, liquidity and internal control
  • assessment of financial position etc by SFC
  • the capability to repay the share capital and strong liquidity

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