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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.
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SFC Licensing for Asset Managers in Hong Kong
Spotlight on Common Licensing Conditions
Did You Know…
4 Facts Regarding SFC Licensing
Exemptions
Private Equity
Capital & Financial Requirements
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.
