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What are licensing conditions?

Licensing conditions are conditions imposed by the SFC on the license of firm regulated by the SFC.

A typical licensing condition for a Type 9 asset manager engaged in the management of pooled or collective investment vehicles is that it not hold client assets.

Quick Facts

SFC Licensing for Asset Managers in Hong Kong

Spotlight on Common Licensing Conditions

Did You Know…

4 Facts Regarding SFC Licensing

  1. Exemptions

  2. Private Equity

  3. Capital & Financial Requirements

  4. Common Licensing Conditions

Common Licensing Conditions

Type 9 licenses are often subject to a condition that the licensed corporation not hold client assets.

In such case the asset manager will normally use an outside custodian to custody client assets.

Asset management firms will generally accept this condition as it reduces required regulatory capital.

Many Type 9 licenses are also subject to a condition that the licensed corporation only deal with professional investors.

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