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What are regulatory capital requirements?

SFC licensed corporations are subject to both paid-up and liquid capital requirements. Asset managers licensed for Type 9 regulated activity may be eligible for reduced capital requirements, including nil paid-up capital and liquid capital of HK$100,000 plus a 20 per cent buffer.

Quick Facts

SFC Licensing for Asset Managers in Hong Kong

Spotlight on Capital and Financial Requirements

Did You Know…

4 Facts Regarding SFC Licensing

  1. Exemptions

  2. Private Equity

  3. Capital & Financial Requirements

  4. Common Licensing Conditions

Capital and Financial Requirements

The SFC mandates that licensed asset managers maintain a certain level of capital adequacy.

For a Type 9 licensed corporation, this includes:

  • Paid up capital of HK$5 million

  • Minimum liquid capital of at least HK$3 million plus a 20 per cent buffer.

  • It has no minimum paid up capital and

  • Its minimum liquid capital is reduced to at least HK$100,000 plus a 20 per cent buffer.

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