SFC licensing and compliance hints – Oct 2019

Preparing a successful RO application

Making an RO application is not any harder than applying to be a licensed representative. However, it does take longer to prepare. In addition to understanding the proposed RO duties, applicants should take a slow walk down memory lane to identify all the relevant (direct or indirect) experience that they have gained over the years. It is important for the applicant to invest time in explaining in the application how their experience is relevant to the proposed RO role.

The SFC processing time for RO applications is longer than representative applications. If the proposed RO is not licensed and would like to start conducting regulated activities as soon as possible, the individual could consider first becoming a licensed representative.

Did the BCP work?

Did your company activate its Business Continuity Plan recently? Did the plan work without hitches? Could the company continue as usual when some staff could not go to work? Did communications with clients, service providers, regulators, and colleagues continue without glitches? If any part of the plan did not run smoothly, these events can be used to identify areas for improving and updating the BCP.

The new annual Business Risk Management Questionnaire (BRMQ) which licensed companies need to complete and file with the SFC has questions about BCPs. The SFC has issued various circulars relating to BCPs over the years – for ease of reference, here are some links:

24 November 2003:

https://www.sfc.hk/edistributionWeb/gateway/EN/circular/openFile?refNo=H289

25 November 2005:

http://www.sfc.hk/edistributionWeb/gateway/EN/circular/openFile?refNo=H404

21 December 2005:

http://www.sfc.hk/edistributionWeb/gateway/EN/circular/openFile?refNo=H407

30 April 2009:

https://www.sfc.hk/edistributionWeb/gateway/EN/circular/openFile?refNo=H548

12 June 2009:

http://www.sfc.hk/edistributionWeb/gateway/EN/circular/openFile?refNo=H551