SFC clarifies asset management licensee competence for entry – 27th July 2017

Hong Kong’s capital markets regulator has issued a circular setting out the competency requirements for individuals who are licensed and want to enter asset management. This type of activity requires Type 9 licence under the Securities and Futures Ordinance. The document also provides guidance on how the Securities and Futures Commission (SFC) gauges the competence of a corporation or a responsible officer (RO) for carrying out asset management activities. “The circular highlights the eligibility criteria of, and restrictions on permitted activities for, licensed persons seeking conditional exemptions from passing the required examination papers in order to meet the SFC’s requirements,” the local regulator said on June 23. Asset management trade requirements Licensed individuals seeking to enter the asset management business are required to be licensed for Type 9 regulated activity (asset management) if their proposed services are not wholly incidental to the regulated activities.

Ajay Shamdasani, Regulatory Intelligence