What is the licensing requirement for asset managers under the Securities and. Futures Ordinance (SFO)?
Under the SFO, any person who carries on a business in Type 9 regulated activity (asset management) must, unless otherwise exempted, hold an SFC license.
One exemption from licensing is the intra-group exemption.
Show Video TranscriptQuick Facts
SFC Licensing for Asset Managers in Hong Kong
Spotlight on SFC Licensing Exemptions
Did You Know…
4 Facts Regarding SFC Licensing
Exemptions
Private Equity
Capital & Financial Requirements
Common Licensing Conditions
Exemptions
Market participants often rely upon the intra-group exemption from the SFC Type 9 license requirement.
Under this exemption a corporation is exempt from a Type 9 license:
If it provides a service of managing a portfolio of securities or futures contracts solely to its wholly owned subsidiaries,
Or its holding company which holds all its issued shares,
Other wholly owned subsidiaries of that holding company.
However, a decision to avoid an SFC Type 9 license based on an exemption…
can have significant criminal consequences if the decision is made on the incorrect belief that an exemption applies when, in fact, it does not.