Hong Kong has a well-developed financial services industry and it is one of the main financial services centers in Asia. Investors who wish to conduct regulated activities in this field, as offering asset management or fund management services, will need to obtain the required licenses.
In order to obtain a fund manager license in Hong Kong, investors will need to submit the required application forms to the Securities and Futures Commission and observe the requirements for regulated activities.
Entrepreneurs who open a company in Hong Kong for the purpose of providing financial services, such as asset and fund management, can reach out to our team of agents who specialize in the registration of corporations. We can provide complete services related to the registration of the company and obtaining the mandatory licenses for the planned activities.
Activities regulated by the Securities and Futures Commission in Hong Kong
There are ten types of regulated activities, as described in the Securities and Futures Ordinance in Hong Kong. These are:
- Dealing in securities
- Dealing in futures contracts
- Leveraged foreign exchange trading
- Advising on securities
- Advising on futures contracts
- Advising on corporate finance
- Providing automated trading services
- Securities margin financing
- Asset management
- Providing credit rating services.
For the purposes of a fund manager, the types of regulated activities could be the following:
- Advising on securities: advice on the securities that should be purchased or sold as well as providing reports that will ease the decisions.
- Advising on futures contracts: giving advice on the manner in which futures contracts should be entered into as well as providing reports and analysis.
- Asset management: securities or futures contracts management or real estate investment scheme management.
- Advising on corporate finance: falling outside of the general scope of a manager and investment advisor, this could still be a license used by a larger company offering these types of services in Hong Kong.
In practice, advising on corporate finance means offering the needed advice for compliance when offering securities to the public or when purchasing such public securities as well as the counseling and advice needed by corporations (listed ones) for the purpose of restructuring as far as securities are concerned. It does not include advice offered by licensed individuals licensed for other purposes, such as the type one license for dealing in securities.
Some types of activities can be subject to exemptions from having to obtain a license. For example, those companies that offer services only with professional investors may not need a license.
Investors who wish to know more about the Securities and Futures Ordinance and each type of regulated activities, as set forth in Schedule 5, can reach out to one of our agents who specialize in company registration in Hong Kong.
Start a fund management business in Hong Kong
Some of the regulated activities listed above are subject to requirements as per the corporation that offers the services, most notably the paid up capital of the corporation. For a type 9 activity, the asset management category, a corporation that offers these services may not hold client assets and although it does not need to have a minimum paid-up capital, it will need to have a minimum liquid capital.
A fund manager will need to have the following abilities in order to be able to provide services to a company that activates in the financial services industry:
- – academic qualifications: a degree in a relevant field or have a recognized industry qualification.
- – experience: three to eight years of relevant experience in the industry for different positions and seniority;
- – management experience: a minimum experience for management as well as relevant skills.
- – regulatory compliance: the fund manager must pass the relevant regulatory framework papers.
The standard processing time for licenses described in this article can vary and it may last approximately two weeks. We advise investors to start the application process in due time.
Our team of agents who specialize in company registration in Hong Kong can help investor set up a certain type of company and then apply for the licenses as per the requirements set for them by the Securities and Futures Commission for fund managers. With our help, investors will be able to apply for the needed license and receive general licensing advice.
Contact us for complete details about opening a company in Hong Kong that offers fund management services.