Licensing and the SFC

What the paper gets you, what the SFC adds on top, and how sponsorship works.

SFC licence types explained: the thirteen regulated activitiesThe SFC does not issue a general permission to work in finance. It licenses thirteen named regulated activities, numbered Type 1 to Type 13, and you h…
Which HKSI papers do I need for my SFC licence?Almost every applicant sits Paper 1, the common paper on securities and futures regulation. On top of that you sit a practical paper matched to your r…
Type 1: the dealing in securities licenceA Type 1 licence permits dealing in securities: making or offering to make an agreement to buy or sell securities, or inducing someone to do so. It is…
Type 2: the dealing in futures contracts licenceA Type 2 licence permits dealing in futures contracts: making or offering to make an agreement to buy or sell a futures contract, or inducing someone …
Type 4: the advising on securities licenceA Type 4 licence permits advising on securities: giving advice on whether, which, at what time and on what terms to buy or sell securities, and issuin…
Type 6: the advising on corporate finance licenceA Type 6 licence permits advising on corporate finance: advice on compliance with the Listing Rules, on takeovers and share buy-backs, and on the offe…
Type 9: the asset management licenceA Type 9 licence permits asset management: managing a portfolio of securities or futures contracts on a discretionary basis, or managing a collective …
How to become a licensed representative in Hong KongA licensed representative is an individual approved by the SFC to carry on a regulated activity for a licensed corporation. You need a sponsoring empl…
How to become a responsible officer in Hong KongA responsible officer is a licensed representative additionally approved by the SFC to supervise a regulated activity. Every licensed corporation must…
The SFC fit and proper test, and what it looks atFit and proper is the SFC's character test for anyone it licenses. It looks at financial status, education and qualifications, ability to carry on the…
SFC competence requirements, explained without guessworkCompetence is the SFC's second licensing test after fitness and properness. It has three components: an academic or industry qualification, a regulato…
HKSI Paper 1 exemptions: what we can and cannot tell youExemption from HKSI Paper 1 is possible but it is decided by the SFC, not by HKSI and not by your employer. It runs through recognised qualifications …
The SFC licence application process, step by stepYour sponsoring licensed corporation files the application through the SFC's online portal. You supply personal disclosures, qualification evidence an…
Continuous professional training for SFC licenseesContinuous professional training is the SFC's requirement that licensed individuals keep their competence current after licensing. It runs on an annua…
Transferring your SFC licence when you change jobsAn SFC licence does not transfer. Your accreditation to a firm ends when the employment does, and the new firm applies to accredit you. Your examinati…
Registered institutions vs licensed corporationsA licensed corporation is a firm licensed by the SFC to carry on regulated activities. A registered institution is an authorised bank doing the same a…
Working in Hong Kong finance as an overseas hireOverseas hires face the same SFC regime as local candidates: a sponsoring firm, the fit and proper test, and the competence requirement. Foreign licen…
HKSI Paper 1 for compliance professionalsCompliance roles are usually not regulated activities, so a compliance officer often does not need a licence. Most take Paper 1 anyway, because it is …
HKSI Paper 1 for bankers: what changes inside a bankBank staff carrying on regulated activities sit the same HKSI Paper 1 as everyone else, but they register as relevant individuals with the HKMA rather…
How to check an SFC licence on the public registerThe SFC public register is a free searchable database of every licensed corporation, licensed representative, responsible officer and registered insti…
What jobs need HKSI Paper 1?Any role that carries on a regulated activity needs the competence requirement satisfied, and for most people that means Paper 1. Brokers, sales trade…
HKSI Paper 1 and where it takes your careerPaper 1 is a prerequisite, not a differentiator. It removes the licensing obstacle between you and a regulated seat, and almost everyone in the front …
How long does SFC licensing take, start to finish?There are two clocks: the examination clock, which you control, and the application clock, which you do not. Study, sitting and results are largely pr…
Employer sponsorship for SFC licensing: what to ask forYou cannot be licensed as an individual without a licensed corporation or registered institution accrediting you. The firm files the application, conf…