SFC licensing and compliance hints – Nov 2018

Final call CPT 2018

This is our last reminder for 2018. All licensed individuals should have already fulfilled or be close to fulfilling their 2018 CPT requirement. If your company has any licensed individuals who still need CPT hours, they need to act quickly to complete their training hours by the end of the year. Note that excess CPT hours cannot be carried forward, nor can a 2018 deficit be rectified by undergoing additional training in 2019.

Five myths for getting a new SFC corporate licence

#1    Marketing funds to professional investors only does not require a licence

Funds can be offered in Hong Kong without obtaining the SFC’s authorisation for the fund as long as the offering does not amount to an offer to the public. However, the marketing of funds, even to professional investors only, requires an SFC licence for the entity to conduct marketing.

#2    All directors need to be licensed as ROs

Only the directors that will be conducting or supervising the business of regulated activities will need to be licensed.

#3    All RO needs to be board members of the company

There is no such requirement.

#4    ROs need to be employees of the company

An employment relationship is not strictly a requirement, but the ROs must be authorised to represent the company and must satisfy the SFC that they are in a position to devote adequate time and attention to the business of the company, and that any other positions they hold will not present a conflict of interests.

#5    Bank account needs to be ready before submission

Bank account details do not need to be provided when the application is filed; however, the SFC will not grant the final approval unless it has the bank account information.