Exemptions from applying for a licence

This section outlines certain circumstances in which exemptions from the licensing requirements under the Securities and Futures Ordinance may apply. If you need more specific guidance on your circumstances, you should refer to the Securities and Futures Ordinance or seek advice from a professional adviser.
For the sake of simplicity, unless otherwise stated, the references to 'licence' and 'registration' in the rest of this page have the same meaning, and "licensed/licensed/licensed" and "registered" also have the same meaning.
Incidental Exemptions
If certain regulated activities you carry out are wholly incidental to another type of regulated activity for which you are already licensed, you may not be required to be licensed for the former. There are various relevant factors involved in determining whether an incidental exemption applies to an activity, such as whether the activity is ancillary to other regulated activities for which the licensed corporation is already licensed or to be licensed, whether separate fees are charged for the activity, and whether the activity constitutes a substantial part of the licensed corporation's business. An incidental exemption may apply in the following situations:
Licensed for Type 1 regulated activity and carrying on certain other regulated activities
You are licensed for Type 1 regulated activity (dealing in securities) and intend to carry on Type 4 regulated activity (advising on securities), Type 6 regulated activity (advising on corporate finance) and/or Type 9 regulated activity (asset management). If the Type 4, 6 and 9 regulated activities you intend to carry on are wholly incidental to your securities dealing business, you do not need to be licensed for these three regulated activities. This exemption usually applies to stockbrokers who provide investment advice or manage discretionary accounts for their own securities clients.
Licensed for Type 2 regulated activity and carrying on certain other regulated activities
You are licensed for Type 2 regulated activity (dealing in futures contracts) and intend to carry on Type 5 regulated activity (advising on futures contracts) and/or Type 9 regulated activity (asset management). You do not need to be licensed for Type 5 and Type 9 regulated activities if the regulated activities you intend to carry out are wholly incidental to your futures contract trading business. This exemption usually applies to futures brokers providing investment advice or managing discretionary accounts for their own futures clients.
Licensed for Type 9 regulated activity to carry out certain other regulated activities
You are licensed for Type 9 regulated activity (asset management) and intend to carry out Type 1 regulated activity (dealing in securities), Type 2 regulated activity (dealing in futures contracts), Type 4 regulated activity (advising on securities) and/or Type 5 regulated activity (advising on futures contracts). You do not need to be licensed for such regulated activities if the regulated activities you intend to carry out arise solely out of the asset management business (for Type 4 and Type 5 regulated activities, the asset management business must involve portfolio management under collective investment schemes). This exemption usually applies to fund managers who give trading instructions or provide investment advice/research reports to dealers when they manage a portfolio of securities and/or futures contracts for their own clients.