This publication provides an overview of the key features of licensing requirements and ongoing regulatory obligations for any companies and individuals carrying on regulated activities ("RA") in Hong Kong.
The Securities and Futures Commission ("SFC") is the regulator empowered by the Securities and Futures Ordinance ("SFO") to oversee the regulated activities in the securities and futures markets in Hong Kong. Under the Hong Kong's regulatory regime, companies and individuals that intended to carry on the following 10 types of regulated activities in Hong Kong are required to apply for the appropriate type of SFC license unless a specific exemption is applicable. Depending on the nature of the business, one or more SFC license(s) should be applied to conduct the proposed regulated activities.
Overview of the SFC Licensing Regime
Type of regualated activites
Type 1 Dealing in securities Type 2 Dealing in futures contracts Type 3 Leveraged foreign exchange trading Type 4 Advising on securities Type 5 Advising on futures contracts Type 6 Advising on corporate finance Type 7 Providing automated trading services Type 8 Securities margin financing Type 9 Asset management Type 10 Providing credit rating services The following table summarises the key licensing requirements for the common types of licenses that CityLinkers provides support. In general, the SFC type 1 (i.e. dealing in securities) license applicant would apply the SFC type 4 (i.e. advising on securities) license together for the business purpose. The similar reason applies to SFC type 2 (i.e. dealing in futures contracts) and SFC type 5 (i.e. advising on futures contracts) as well.