SFC licensing and compliance hints – Aug 2012

Grace period: When the SFC gives an applicant six months to pass a licensing exam, it is important to remember that this is a “one-off” grace period. If the applicant has not passed the paper within six months, the licence will automatically lapse. The SFC is usually very reluctant to grant extensions to this grace period.

Board approval: In responsible officer applications, the individual must declare that the board of directors has resolved to appoint him/her as an RO to supervise the business of regulated activities. The RO application form can only be signed after the board resolution has been passed.

CAD: Participation in the Common Anniversary Date programme is optional and enables a licensed company or group to select one CAD on which to submit the annual returns and fees for all the companies and licensed individuals concerned. Participation can reduce administrative time and costs. The specific date is up to the licensees, subject to SFC approval.

New SFC website and forms: The SFC has revamped its website. There are some interesting additions (including statistics on on-site inspections) and users can now follow amendments to the codes and guidelines online. The SFC has also amended the licensing forms with immediate effect. As a result of the new forms:

1. licensed companies, corporate substantial shareholders and corporate directors need to complete a vetting authorisation form;
2. corporate substantial shareholders and corporate directors are required to provide copies of their incorporation documents;
3. boards can appoint authorised signatories to sign; and
4. new corporate licence applicants do not need to provide client agreements.