Document 6564835

Securities and Futures Paper 1 Licensing Exam CHAPTER 6
LICENSING AND REGISTRATION
SECTION 4
ON-GOING OBLIGATIONS
Remaining Fit and Proper
•
•
•
All person licensed by or registered with SFC to conduct Regulated Activities must remain fit and
proper at all times
In case of Licensed Corporations, Licensed Representatives (including ROs), compliance with the
requirements are monitored by SFC
In case of Registered Institutions, their relevant individuals conducting Regulated Activities
(including EOs), compliance with the requirements are monitored by HKMA
Notification of Changes and Certain Events
•
The following changes and events needed to be notified to SFC within 7 business days:
Type of Changes or Events
LC
Applicable to
LR
RO
RI
Ceased to act as Licensed Representative
✓
✓
Ceased to act as RO of Licensed Corporation
✓
✓
Change in EO of Registered Institution
✓
LC – Licensed Corporation; LR – Licensed Representative; RO – Responsible Officer;
RI – Registered Institution
•
Licensed Corporations and Registered Institutions must notify SFC at least 7 business days in
advance for intended cessation of business
Notification by Associated Entities of Intermediaries
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•
Associated entity is required to notify SFC within 7 business days if:
n
It becomes an associated entity of an intermediary
n
There are changes in its particulars
n
It ceases to be an associated entity of an intermediary
Associated entity is required to notify SFC of its financial year end within 1 month after becoming
an associated entity of an intermediary (not applicable if the associated entity is an AFI)
Notification by Substantial Shareholder of Licensed Corporation
•
In case a person has found out that he becomes the substantial shareholders of a Licensed
Corporation without SFC’s approval, he must apply to SFC for approval to continue to be
substantial shareholder as soon as reasonably practicable and in any event within 3 business days
after he becomes so aware
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Securities and Futures Paper 1 Licensing Exam Submission of Financial Resources Returns
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•
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Applicable to Licensed Corporations only
Under Securities and Futures (Financial Resources) Rules, Licensed Corporations are required to
submit financial resources returns to SFC on ‘monthly’ basis
Allow to submit on ‘semi-annual’ instead of ‘monthly’ basis only if the Licensed Corporations are:
n
Licensed by SFC to conduct only Type 4, 5, 6, 9 and/or 10 Regulated Activities; AND
n
Not allowed to hold client assets under their licensing terms
Submission of Audited Accounts
•
Applicable to Licensed Corporations and associated entities of intermediaries (which is not AFIs)
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