SFC Type 1 License Services in Hong Kong

Primasia Corporate Services Limited provides SFC Type 1 license application services and regulatory compliance services. Our highly experienced experts use the latest regulatory processes to provide an efficient type 1 SFC licensing service for your business dealing in securities.

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SFC Type 1 License Services

Hong Kong is known as one of the top financial jurisdictions for securities dealing in Asia, therefore, there is a need for the type 1 license for the dealing in securities under Securities and Futures Ordinance (Cap. 571). This kind of license regulates business dealings including the purchasing, selling, subscribing and underwriting the securities whether as principal or as an agent. There are total 10 kinds of SFC regulated activities. SFC Type 2 license is related to dealing in futures contracts, Type 9 license covers asset management activities while SFC Type 10 covers credit rating services.

The Hong Kong SFC can be compared to FCA in the UK and ASIC of Australia in many ways. With our experts, your SFC license application(s) will be prepared accordingly in order to meet the regulatory requirements and help in successful operations in the future in Hong Kong securities and futures market.

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Hong Kong SFC Type 1 License Benefits

  • Authorisation to deal in securities including brokerage, trading and distribution services
  • Access to Hong Kong’s financial structure and capital market
  • Ability to operate in the securities market for professional and retail customers under a regulatory framework
  • Reputable regulatory authority that increases the confidence of customers
applying SFC Type 1 License in Hong Kong

Make Your Future Brighter with SFC Type 1 License Services by Primasia

Selecting the right partner for the application of SFC Type 1 license is crucial to your company’s successful licensing journey as it is necessary for firms to get the license for regulated activities under SFC, and our broader SFC license applications for Type 1, 4 and 9 support ensures consistency across all your regulated activities. By hiring Primasia, your application will be made with great ease, efficiency and compliance according to your business needs in the securities sector while meeting the regulatory requirements and Securities and Futures Commission regulations of Hong Kong. We have proven professional experience in helping securities firms of all kinds of business models with their licensing in Hong Kong. Our expert team will assist you with SFC Type 1 license application or dealing permission or any other services accordingly to your requirement.

The Type 1 license includes the exemptions in regard to Type 4 (advising on securities) and Type 6 (advising on corporate finance), if and when those are done in the form of incidence of dealing and not as separate activities.

Get in touch with our experts now to know how Primasia’s licensing solutions and regulatory compliance can help with your securities dealings.

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Type 1 SFC licensing service at Primasia

Why Choose Primasia to Handle Your SFC Type 1 License Application?

We minimise the complexity of licensing while offering an accurate, transparent and timely service in your application management and help you with SFC Type 1 License in Hong Kong.

  • Deep local knowledge with global standard; We are one of the leading Corporate services firms in Hong Kong
  • Professional, multilingual teams with decades of Securities and Futures Commission experience
  • Proven track record in Type 1 license application and compliance services

Our SFC Type 1 License Services in Hong Kong

We provide the full SFC Type 1 license services for securities firms, for virtual asset platforms for trading security tokens and alternative asset managers with the dealing authorisation.

License application and documentation

  • SFC Type 1 license application and submission via the WINGS-LIC online platform
  • Development of the business plan which includes the corporate structure of your firm and its core business functions as well as six-months financial forecast
  • Fitness and properness assessments of your directors and substantial shareholders taking into consideration the criteria used by SFC related to financial status, reputation, honesty and reliability
  • Corporate structuring and registered office for your company which is supposed to be either incorporated or registered overseas by the Companies Registry

Responsible Officers and licensed representatives licensing

As a corporation with the license you need to appoint at least two responsible officers in order to supervise your regulated activities, while at least one of them should supervise activities at all times. Persons who perform regulated function should be licensed as representatives, thus, we handle the following:

  • Appoint responsible officers and their approval for licensing
  • Apply for licensing of representatives
  • Competence tests and HKSI exam coordination (for example LE paper 2 – Regulation of Securities)
  • Multi-language support for licensing exams and interview (English, Cantonese and Mandarin)

Compliance framework and policy development

Internal controls and risk management must be presented for your Type 1 license application by SFC. Therefore, we prepare the following:

  • Development of internal controls and compliance manual including anti-money laundering and counter terrorism financing policies
  • Development of risk management framework, internal audit trail system
  • Regulatory reporting and notification procedures – licensed corporations need to notify SFC about changes within 7 business days
  • Well-structured record keeping and operational manual

Post licensing services and maintenance

  • Hong Kong company secretary services to maintain statutory compliance
  • Annual license fee payment and renewal coordination
  • Changes in the regulations and compliance management
  • SFC communication services

Virtual Asset Trading and Security Token Trading with Type 1 License

Since security tokens are considered as “securities” under the Securities and Futures Ordinance (SFO), their distribution or trading is regarded as regulated activities, and there are different licensing conditions depending on your business structure:

  • Trading and promotion of security tokens in Hong Kong market via centralised platform requires obtaining a Type 1 license for such activity.
  • In order to trade security tokens via centralised virtual asset trading platform (VATP), you need to hold both a Type 1 license and a Type 7 license, Automated Trading Services, since the Securities and Futures Commission has adopted the dual license structure for VATPs.
  • If licensed corporations carry out virtual asset dealing activities, they have more obligations than those that come with Type 1 license, such as additional requirements concerning enhanced disclosure, anti-money laundering rules, and asset custody.
  • Non-security (or utility/payment) tokens, which may be traded via centralized platform, fall under the licensing scheme specifically designed for VASPs and provided under Anti-Money Laundering Ordinance (AMLO).

Primasia assists virtual asset platform operators and security token issuers to determine the applicable type of licenses for their business structure, and also assists in obtaining a Type 1 license and where applicable, a Type 7 license.

Time required for the Type 1 SFC License Application Process

Procession of an application will usually take approximately 3.5-4 months. The most common reasons for the delays include missing documents, the process of getting visas and qualification recognition of overseas staff.

The application procedure consists of the following actions:

1.

You need to check your business activities in order to understand whether your business qualifies as dealing with securities and whether you will need other regulated activities (for example, Type 9 license for asset management);

2.

You should make a business structure: incorporate in Hong Kong or register an overseas company with well defined board with designated Managers-in-Charge of your core business;

3.

You should allocate financial resources: minimum paid up capital is HKD 5,000,000 (HKD 10,000,000 if your activity involves the use of securities margin financing); Minimum liquid capital is HKD 3,000,000.

4.

You should define responsible officers and licensed representatives of your firm that passed all the necessary HKSI examination and have the appropriate industry experience;

5.

You should develop governance and compliance framework of your firm including internal controls, anti money laundering, risk management and audit trail systems;

6.

Submission of application for the SFC license along with all the required documents and paying the application fee, which is HKD 4,740 per regulated activity;

7.

Response to questions from the regulator during the assessment procedure; in particular, all individuals and companies involved in the licensing application are going to be evaluated in relation to their fitness and properness for licensing

8.

After you got your license: establish regulatory reports procedure, maintain financial resources adequacy and fulfill your continuing professional development requirements

Annual audit and reports for the regulator are required. SFC is monitoring compliance with all the requirements set forth in SFO and the corresponding subsidiary legislation.

SFC Type 1 license application in Hong Kong

Contact Primasia’s Type 1 SFC License Application Experts in Hong Kong

We minimise the complexity of the application procedure while providing timely and efficient support in your application management. That makes us your trusted partner for the SFC Type 1 licensing in Hong Kong. Whether you need application support, compliance consulting or any kind of regulatory guidance we got you covered.

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John Barclay

John Barclay

Chairman

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Teresa Tam

Teresa Tam

Managing Director

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Stella Shiu

Stella Shiu

Director, Company Secretarial Services

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Samantha Tse

Samantha Tse

Director, Accounting Services

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Clare Lam

Clare Lam

Assistant Company Secretarial Manager

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Takky Chan

Takky Chan

Assistant Accounting Manager

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SFC Type 1 License in Hong Kong FAQs

SFC Type 1 license permits you to deal in securities under Hong Kong Securities and Futures Ordinance. These activities can include, among others, securities dealing, securities brokerage, securities trading, securities distribution, underwriting and other related activities. There are total 10 kinds of SFC licenses in Hong Kong that regulate various kinds of regulated activities. With our experts, you will comply with all the SFC competence requirements and concentrate on dealing in your core securities activities.

Hong Kong has a reliable licensing and regulatory framework, direct market access and investor protection provided by SFC. You should designate at least two responsible officers for your activities in order to supervise regulated activities and your fit and proper assessment includes all aspects of fitness like financial condition and your industry experience and reputation. Our team will handle the whole procedure starting with the development of your business plan until the approval of responsible officers.

Yes. With our experts you will receive the post-licensing support in all kinds of compliance activities that include annual renewals, reporting to SFC, monitoring of regulatory matters and correspondence with the SFC. Licensed firms must maintain the financial resources and must inform SFC about the material changes within 7 business days. Our teams will provide you with effective and responsive post-licensing services in all kinds of licensing maintenance including accounting and audit.

Absolutely. Through our Full China Services we provide you with all the services in connection with expanding to Chinese market for securities and asset managing firms and funds management. In Beijing, Shanghai and Guangzhou our teams are ready to assist you with WFOE setup in order to successfully enter to Chinese market.

Contact our team for an initial consultation. Our professionals provide bespoke licensing solutions from application preparation through ongoing compliance, ensuring your securities dealing operations benefit from our decades of experience in Hong Kong’s regulatory environment.