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Print articleHong Kong SFC Licensing Update
January, 2007 -
The December 2006 SFC Enforcement Reporter provides a timely reminder that carrying out regulated activities without a licence is a highly risky endeavour in Hong Kong. This caps off a year where there were a number of significant enforcement actions for unlicensed dealing activities.
When hiring professionals either from Hong Kong or from offshore, if the individual is not currently licensed by the SFC and their new duties will be to perform SFC regulated activities, a provisional licence may be granted but only if the individual is deemed suitable by the SFC, and following submission of an application to be a licensed representative.
For professionals who have a similar role overseas, and are subject to authorisation by a regulatory body in the home jurisdiction, if you are planning a visit to Hong Kong to carry out regulated activities for a licensed corporation, you will need to apply for a temporary licence. Temporary licenses are restricted to certain activities but include dealing in securities and futures and advising on securities, futures and corporate finance. Temporary licenses are granted for a maximum duration of three months at any one time and a total of six months in any 24 month period.
Itinerant professionals who perform regulated activities and who regularly visit Hong Kong for short periods of time each visit may be exempt from the local regulatory framework papers. The conditions applying to itinerant professionals are that: (i) the individual will not carry on regulated activities in Hong Kong for more than 30 days in any calendar year; and (ii) a licensed or registered person will always accompany them when they are conducting regulated activities in Hong Kong. In these circumstances, the sponsoring corporation also has to provide undertakings that they will be responsible for supervision of the individual’s activities during his stays in Hong Kong, to ensure compliance with Hong Kong requirements.
When hiring professionals either from Hong Kong or from offshore, if the individual is not currently licensed by the SFC and their new duties will be to perform SFC regulated activities, a provisional licence may be granted but only if the individual is deemed suitable by the SFC, and following submission of an application to be a licensed representative.
For professionals who have a similar role overseas, and are subject to authorisation by a regulatory body in the home jurisdiction, if you are planning a visit to Hong Kong to carry out regulated activities for a licensed corporation, you will need to apply for a temporary licence. Temporary licenses are restricted to certain activities but include dealing in securities and futures and advising on securities, futures and corporate finance. Temporary licenses are granted for a maximum duration of three months at any one time and a total of six months in any 24 month period.
Itinerant professionals who perform regulated activities and who regularly visit Hong Kong for short periods of time each visit may be exempt from the local regulatory framework papers. The conditions applying to itinerant professionals are that: (i) the individual will not carry on regulated activities in Hong Kong for more than 30 days in any calendar year; and (ii) a licensed or registered person will always accompany them when they are conducting regulated activities in Hong Kong. In these circumstances, the sponsoring corporation also has to provide undertakings that they will be responsible for supervision of the individual’s activities during his stays in Hong Kong, to ensure compliance with Hong Kong requirements.
