SFC licensing and compliance hints – Mar 2013

You can’t hide and you can’t lie – The SFC’s press release of 14 February 2013 concerning the giving of false information to the SFC reminds us how important it is for licence applicants to read application forms very carefully. It is a criminal offence to provide false or misleading information to the SFC. The SFC has ways of verifying the information provided through other regulatory bodies whether in Hong Kong or overseas. The relevant corporate applicant / licensed corporation therefore needs to review all the information provided in the application documents and be sure they think the person is fit and proper before signing the documentation to endorse the application. The SFC has also issued specific FAQs regarding disclosure of warning records and these can be found at
http://www.sfc.hk/web/EN/faqs/intermediaries/licensing/other-topics-relating-to-the-sfo.html#13

http://www.sfc.hk/web/EN/faqs/intermediaries/licensing/other-topics-relating-to-the-sfo.html#14

Membership of FDRS – All licensed companies (except Type 10 licensees) need to be members of the Financial Dispute Resolution Scheme (FDRS) so clients may have received letters from the Financial Dispute Resolution Centre (FDRC) asking for the contact details of the individuals who will handle FDRS matters. Even though the FDRS has only been set up to resolve minor monetary disputes between licensed companies and individuals, all licensed companies are advised to provide their contact details when requested. For information about the FDRC’s establishment, please refer to our Client Alert of June 2012.