If you plan on starting a business in the financial industry, you must have an SFC license. Otherwise, your company won’t be able to operate legally in Hong Kong.
An SFC license is a permit granted by the Securities and Futures Commission SFC to individuals and firms who want to engage in regulated activities. It is mandatory for anyone who wants to provide financial services, including advising on securities, managing securities portfolios, and dealing in futures contracts.
This license ensures that the public can trust that the individuals and entities offering financial services are competent, capable, and adhere to ethical standards. It also provides a framework for consumer protection and regulatory oversight.
There are two types of SFC licenses: Type 1 and Type 2. Type 1 is for dealing in securities while Type 2 is for the provision of investment research and advisory services.
To get an SFC license, you must meet specific criteria, including having relevant experience and qualifications, meeting adequate financial resources, and having a sound business reputation. You’ll also need to pass the regulatory exams and provide detailed information about your business plan and operations.
Once you have an SFC license, you must comply with ongoing regulatory requirements, such as keeping accurate records, submitting regular reports, and undergoing regular compliance reviews.
An SFC license is mandatory for anyone who wishes to operate a financial services business in Hong Kong. It is essential to ensure that your business is reputable and legally compliant.
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