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Print articleHong Kong: Notifying Changes to the SFC
June, 2007 -
Section 135 of the Securities and Futures Ordinance (SFO) sets out various events to be reported by licensed persons to the SFC and by registered institutions to the HKMA and gives timelines for making these filings. In addition, Schedule 3 to the Securities and Futures (Licensing and Registration) (Information) Rules specifies additional changes that are required to be notified by licensed corporations, registered institutions, licensed individuals and substantial shareholders of the licensed corporation and registered institution.
For example, basic information such as changes in passport number or residential address of directors, substantial shareholders and licensed persons should be notified the SFC (or to the HKMA in the case of registered institutions). If a substantial shareholder or director of the licensed corporation or registered institution is subject to any disciplinary action or investigation by a regulatory body or criminal investigatory body, the licensed corporation must also notify the SFC even though the subject matter is not related to the business or the operation of the licensed corporation. For cases like these, licensed corporations are likely to be asked to demonstrate whether the fitness and properness of the licensed corporation is affected by the disciplinary action or investigation of its parent.
As a general reminder, if there is any change in the information previously submitted to the SFC or the HKMA, this should be notified to the SFC or the HKMA within seven business days of the change.
A point to note is that licensed corporations or registered institutions are required to notify the SFC or the HKMA seven business days in advance if they want to cease to carry on any regulated activity that is licensed or registered or if they intend to change the address from which they propose to carry on business. Note that if the new address is where the records and documents are to be kept, the licensed corporation will need prior SFC approval and an application fee is payable.
For example, basic information such as changes in passport number or residential address of directors, substantial shareholders and licensed persons should be notified the SFC (or to the HKMA in the case of registered institutions). If a substantial shareholder or director of the licensed corporation or registered institution is subject to any disciplinary action or investigation by a regulatory body or criminal investigatory body, the licensed corporation must also notify the SFC even though the subject matter is not related to the business or the operation of the licensed corporation. For cases like these, licensed corporations are likely to be asked to demonstrate whether the fitness and properness of the licensed corporation is affected by the disciplinary action or investigation of its parent.
As a general reminder, if there is any change in the information previously submitted to the SFC or the HKMA, this should be notified to the SFC or the HKMA within seven business days of the change.
A point to note is that licensed corporations or registered institutions are required to notify the SFC or the HKMA seven business days in advance if they want to cease to carry on any regulated activity that is licensed or registered or if they intend to change the address from which they propose to carry on business. Note that if the new address is where the records and documents are to be kept, the licensed corporation will need prior SFC approval and an application fee is payable.
