How to Obtain an SFC License in Hong Kong?

1. Desired License Types: (e.g., Type 3 Leveraged Foreign Exchange Trading, Type 1 Dealing in Securities, or Type 4 Advising on Securities).
2. Incorporate a Hong Kong company and ensure compliance with local regulations.
3. Meet eligibility criteria including financial resource requirements and SFC’s fit-and-proper standards for management and shareholders.
4. Prepare required documents such as a detailed business plan, compliance manual, organizational chart, financial statements, and background details of directors and key personnel.
5. Appoint at least two Responsible Officers (ROs), one of whom must be an executive director, both meeting the SFC’s experience and qualification requirements.
6. Submit the full application package via the SFC’s WINGS online portal along with the necessary fees.
7. Undergo the SFC’s fit-and-proper assessment, which includes financial, professional, and integrity evaluations of the company and its ROs.
8. Await final review and approval by the SFC; timelines vary depending on application complexity.

What is an SFC License in Hong Kong?

An SFC license is a regulatory authorization issued by the Securities and Futures Commission (SFC) of Hong Kong. It permits entities and individuals to engage in specific regulated activities within the securities and futures markets, ensuring adherence to legal and ethical standards.

Who Needs an SFC License?

Any company or individual conducting regulated activities, such as dealing in securities, asset management, or providing investment advice in Hong Kong, must obtain the appropriate SFC license. This requirement applies to both local and overseas entities operating within the jurisdiction.

What Are the Types of SFC Licenses?

The SFC categorizes licenses based on the type of regulated activity. Common types include:

• Type 1: Dealing in securities
• Type 3: Leveraged foreign exchange trading
• Type 4: Advising on securities
• Type 9: Asset management

What Are the Key Requirements for Obtaining an SFC License?

Applicants must:

• Be incorporated in Hong Kong or registered with the Hong Kong Companies Registry.
• Demonstrate financial solvency and integrity.
• Appoint at least two Responsible Officers (ROs), one of whom must be an executive director.
• Submit a comprehensive business plan and compliance manual.
• Meet minimum capital requirements as stipulated by the SFC.

How Long Does the SFC Licensing Process Take?

The SFC aims to process licensing applications within 15 weeks. However, the actual duration may vary based on the complexity of the application and the completeness of the submitted documents.

Can Atomiq Consulting Assist with the SFC License Application?

Yes, Atomiq Consulting offers expert guidance throughout the SFC licensing process, including document preparation, compliance strategy development, and liaison with regulatory authorities.

What Are the Ongoing Compliance Obligations After Obtaining an SFC License?

Licensed entities must:

• Maintain adequate financial resources.
• Ensure continuous compliance with SFC regulations.
• Submit regular financial and operational reports.
• Undergo periodic audits and inspections by the SFC.

Is Physical Presence in Hong Kong Required?

Yes, applicants must establish a physical presence in Hong Kong, which includes incorporating a local company and appointing at least one Hong Kong resident director.

Are There Exemptions to SFC Licensing Requirements?

Certain exemptions exist, such as incidental exemptions where the regulated activity is wholly incidental to another licensed activity. However, these are subject to specific conditions and should be assessed on a case-by-case basis.

What Happens If I Operate Without an SFC License?

Engaging in regulated activities without the appropriate SFC license is a criminal offense in Hong Kong, leading to severe penalties, including fines and imprisonment.