Apply in Hong KongHong Kong Securities and Futures Commission regulatory license，Core reviews usually focus on the two dimensions of “people” and “funds”，and be embodied in the institutional form of the applicant、business structure、internal control、Personnel qualifications andResponsible personarrange。For institutions intending to conduct regulated financial business in Hong Kong，Clear understanding of intermediary categories、licensed corporationApplication conditions and responsible officer (RO) requirements，It is the key basis for advancing license application。
Hong Kong Securities and Futures Commission Intermediary Categories and Application Subject Selection
in Hong Kong，Organizations permitted to engage in activities regulated by the Securities and Futures Commission can be divided into three main categories:：licensed corporation、Short-term licensed corporations and registered institutions。
licensed corporation
A licensed corporation refers to a corporation licensed under Section 116 of the Securities and Futures Ordinance，to carry out one or more types of regulated activities，but a corporation that is not an authorized financial institution。
short-term licensed corporation
A short-term licensed corporation refers to a short-term licensed corporation issued under Section 117 of the Securities and Futures Ordinance，Can carry out one or more types of regulated activities for a period of not more than three months，but a corporation that is not an authorized financial institution。Short-term licensed corporations are not allowed to engage in Type 3 regulated activities (leveraged foreign exchange trading)、Type 7 regulated activity (provision of automated trading services)、Type 8 regulated activity (providing securities margin financing) and Type 9 regulated activity (providing asset management)。
Registration authority
Registered institution refers to one registered under Section 119 of the Securities and Futures Ordinance，An authorized financial institution that conducts one or more types of regulated activities，But does not include Type 3 regulated activities (leveraged foreign exchange trading) and Type 8 regulated activities (providing securities margin financing)。
From a practical perspective，The period for a short-term licensed corporation to engage in regulated activities cannot exceed 3 months，Applicable scenarios are relatively limited；The registered institution must first belong to a recognized financial institution，Usually based on institutions such as banks，High barriers to entry。therefore，The more common path for enterprises in their regular business layout，The licensed corporation is the applicant。
General application requirements for licensed corporations
When a licensed corporation applies for a license from the Securities and Futures Commission of Hong Kong，Usually need to meet the subject qualifications、suitable person、Competence、Requirements for internal monitoring and responsible staffing。The Hong Kong Securities and Futures Commission will comprehensively assess whether the applicant institution and its related parties have the necessary soundness to be granted a license.、Professional capabilities and compliance operations capabilities。
Fit and proper requirements
According to the provisions of Section 129 of the Securities and Futures Ordinance，When the SFC considers whether an applicant is fit and proper for licensing or registration，In addition to taking into account other matters deemed relevant by the Securities Regulatory Commission，The applicant and, where appropriate, other relevant persons shall also be assessed on the following matters:：
- financial condition or solvency；
- Educational qualifications、Other qualifications or experience，and must be judged based on the nature of the functions the applicant intends to perform.；
- Are you capable of doing your job competently?、Conduct relevant regulated activities honestly and fairly；
- Reputation、character、Reliability and financial soundness。
Company registration requirements
The applicant company must be a company incorporated in Hong Kong，Or an overseas company registered with the Hong Kong Companies Registry。The entity needs to have a business foundation that matches the regulated activities to be applied for、Governance Arrangements and Compliance Carrying Capacity。
Competencies and internal control requirements
The applicant company must satisfy the Securities and Futures Commission，It has a suitable business structure、Good internal control system and qualified personnel，Sufficient to ensure that the proposed business stated in the business plan can be properly executed，and be able to appropriately manage risks that may be faced in the course of business。
in competence、Ethics and internal controls，The Securities and Futures Commission of Hong Kong has issued a series of important guidelines，Includes "Competency Guidelines"、The Code of Conduct for Persons Licensed or Registered with the SFC (the “Code of Conduct”) and the Management Applicable to Persons Licensed or Registered with the SFC、Supervision and Internal Control Guidelines"。The applicant organization should establish an enforceable、Can leave traces、Compliance management system that can be monitored and reviewed。
Responsible Personnel RO Configuration and Supervision Requirements
At least two responsible officers must be appointed for each type of regulated activity，Directly supervise proposed related activities。The official English name of the responsible officer is Responsible Officer，Often referred to as RO。
When submitting your license application，Companies intending to be licensed need to submit approval applications for all persons intending to serve as ROs to the Securities and Futures Commission.，for review by the Securities and Futures Commission。In the course of daily operations, licensed companies，Must ensure that at least one responsible person is able to supervise the relevant operations at all times。
RO can be engaged in multiple types of regulated activities
As long as the person appointed is a fit and proper person，And the relevant arrangements will not cause role conflicts，The same person can be appointed as the responsible officer for more than one type of regulated activity。This arrangement has certain flexibility in group financial business or multi-license layout，However, it is still necessary to ensure that the boundaries of responsibilities are clear、Supervision mechanism is effective。
Relationship between Executive Director and RO
Among the two ROs，There must be at least one "executive director" as defined in the Securities and Futures Ordinance。at the same time，All "Executive Directors" must seek approval from the Securities and Futures Commission to become ROs。
In this context，"Executive Director" means a director who is actively involved in or responsible for direct supervision of the regulated activities for which the corporation is licensed.。Provided that the executive director is able to discharge his responsibilities and oversee the business to the satisfaction of the SFC，They can live outside Hong Kong。This provision provides relatively flexible arrangements for mainland managers to serve as ROs for Hong Kong licensed companies.。
Due diligence requirements for non-Hong Kong resident directors
For directors residing in the Mainland or outside Hong Kong，The SFC usually combines the frequency of its visits to Hong Kong to handle regulatory activities，and the overall level of the licensed company’s internal control systems and systems.，Determine whether the director is competent to meet the due diligence requirements of the Hong Kong Securities Regulatory Commission on ROs。
The RO role is similar to being employed by a licensed company、However, front-line supervisors who bear supervisory responsibilities for the Securities and Futures Commission of Hong Kong。ROs need to pass the CSRC assessment and be approved to hold a license before they can take up the job.，and register to practice with the China Securities Regulatory Commission。
RO qualificationpersonal attributes and practice risks
RO qualifications are directly related to natural persons.，Not attached to any one licensed company。therefore，RO can change the licensed company he works for。But under this institutional arrangement，If RO violates the regulations of the Securities Regulatory Commission at work，You may face the risk of having your license affected or even losing your long-term practicing qualifications.。
Because of this，ROs usually start from a regulatory compliance perspective，Continuously supervise whether the daily operations of licensed companies comply with the requirements of the Securities Regulatory Commission。RO has therefore become an important management tentacle extended by the Hong Kong Securities Regulatory Commission to the frontline operations of licensed companies.，It is of critical significance to the company's continued compliance operations.。
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