Do you need to obtain a license or register?

Generally speaking, you need a licence if you are not an AFI and you carry out the following activities:

You are a corporation carrying on a business in a regulated activity in Hong Kong (sections 114(1) and (2) of the SFO);

You are a corporation that actively markets to the public in Hong Kong or from places outside Hong Kong (whether by yourself or by another person on your behalf) any services you provide which, if provided in Hong Kong, would constitute a regulated activity (section 115 of the SFO);

Please also refer to the FAQ (section 115 of the SFO) or if you perform regulated functions in your personal capacity for your principal (licensed corporation) in relation to any regulated activity carried on as a business, in which case you must be a licensed representative of your principal (sections 114(3) and (4) of the SFO. In addition, if you are an executive director of the corporation, you also need to be approved as a responsible officer (section 125(1)(a) of the SFO).

If you are an authorized financial institution and carry out the following activities, you need to register:

Carrying on a business of a certain type of regulated activity regulated activities, except Type 3 (leveraged foreign exchange trading) and Type 8 (securities margin financing). In this case, you must be a registered institution (sections 114(1) and (2) of the SFO); or(whether by yourself or by another person on your behalf) actively market to the public in Hong Kong or from a place outside Hong Kong any services you provide which, if provided in Hong Kong, would constitute a regulated activity. In this case, you must be a registered institution (section 115 of the SFO).

A person who performs any regulated function in connection with an activity (e.g. a bank clerk working in the securities dealing department) is not required to obtain a licence from or register with the SFC. However, if such a person intends to engage in regulated activities, he or she must be a person listed in the register maintained by the HKMA. The register is available on the HKMA website (http://apps.hkma.gov.hk/eng/index.php).
Licensed corporations and registered institutions are referred to as “intermediaries”. For licensing purposes, sole proprietorships or partnerships are not acceptable business structures.