On 7 May 2007, the SFC updated the Licensing Related Frequently Asked Questions (FAQs) on its website under the heading, "Other Topics relating to the Securities and Futures Ordinance (SFO)".
The updated FAQs assist licensed corporations or licensed applicants in understanding the SFC's view on factors relating to suitability of business premises. Although the SFO and its subsidiary codes and guidelines do not prescribe the specific types of premises from which a licensed corporation should conduct its regulated activities, the SFC expects licensed corporations to ensure their office arrangements are appropriate to the business activities being carried out.
Some of the factors which would generally be taken into account in considering whether the premises are suitable are as follows:
- The security of the premises and a properly segregated office area.
- Essential office equipment and telecommunication systems should be situated in an area accessible only by the firm’s personnel.
- Sufficient measures have been taken to ensure there is no confusion to clients due to the co-existence of other firms in the same premises.
- Confidential or non-public information and client privacy will be sufficiently safeguarded against unauthorised access or leakage.
- The premises are always accessible for visits by regulators.
The guidelines are generally considered to make it difficult for a licensed entity to operate from a serviced office.
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