Hong Kong Asset Management License

Hong Kong ranks as the most competitive worldwide market to do business in and is one of the most prominent economic hubs of autonomous executive, legislative, and judicial authorities. Thus, if you want to start a licensed commercial activity there, Eli Dealโ€™s lawyers can assist you in receiving an asset management license in Hong Kong.

Applying for an SFC License

A company engaging in regulated business (or representing itself to be doing so) must possess an SFC permit, unless exempted, according to the SFO. The SFO now regulates ten different categories of activities. One of them is a permit for assets administration.

You must pass the properness exam to obtain the license, and this test will take into account a variety of factors, including those outlined in its Fit and Proper Guidelines.

  • Availability of funds and stability

If a person requests a license and is through bankruptcy proceedings right now, the SFC is unlikely to be convinced that he is fit and suitable to have a license. It will be taken into account the circumstances of a bankrupt’s most recent discharge as well as its timing.

  • Qualifications

An applicant for a license as a delegate must show that a person is qualified to conduct the proposed statutory duties competently. The commission will consider the applicant’s educational and professional skills as well as any relevant job experience when determining his or her level of competence.

  • Honesty and Proficiency

Both businesses and people asking for licenses from the SFC must show they have what it takes to run the legal business skillfully, honestly, and fairly, as well as following all relevant laws.

For instance, a company must persuade the SFC that its organisation setup and staff are sufficient to meet all legal conditions. It has the internal governance mechanisms and infrastructure necessary to manage risk efficiently, prevent conflicts of interest, and provide an accurate audit trail.

  • Reputation

When evaluating a license applicant’s eligibility and properness, the SFC will take into account some variables, such as whether the applicant has ever received any reprimands, sanctions, or exclusions from any regulatory or professional bodies concerning a particular trade.

Get in touch with our specialists to know more about obtaining a Financial Services Licence in Hong Kong and what necessary conditions it has.

Hong Kong Type 9 (Asset Management) License

This permit enables the licensee to participate in hedge fund managing operations. Hong Kong is now one of the top countries for operating hedge funds and associated accounts thanks to the simplified, affordable procedure established by the Hong Kong SFC.

Since the rise of hedge funds in the 1970s, asset directors have resettled to tax-favourable nations to hide their above-market earnings from harsh tax rates in established nations like the US and the UK. Since knowledgeable investors now anticipate frequently intricate, private tax-neutral arrangements for their investments, the tendency has persisted to the present day.

There are several relevant exclusions. Incidental actions are a significant exception. A person who holds Type 1 or Type 2 permissions may be excused from having to apply for a Type 9 Hong Kong asset management license under this exemption if their functions are conducted only in connection with their securities or futures trading company. This exception may be used, for example, by stock brokers who oversee discretionary accounts on behalf of their customers. In any event, anybody planning to rely on this exception must have competent legal counsel.