Ongoing Compliance Obligations
Licensed corporations, licensed representatives, and registered institutions must remain fit and proper at all times, complying with all provisions of the SFO and SFC guidelines.
General Requirements
All licensed entities and individuals must maintain continuous compliance with statutory obligations, codes, and guidelines issued by the SFC to ensure operational integrity and regulatory adherence.
Exhibition of License
Licensed corporations and registered institutions must exhibit their license or certificate of registration prominently at their principal place of business, typically in the client reception area.
Note: For businesses spanning multiple floors with a common reception area, a single display location is acceptable. Certified copies must be displayed at additional business locations.
Responsible Officer Availability
At least one responsible officer must be available at all times to supervise regulated activities. Officers traveling outside Hong Kong must remain contactable by telephone with proper internal controls in place.
- •Exchange participants must maintain at least two responsible officers locally available at all times to directly supervise brokerage business.
- •Licensed corporations must have two Responsible Officers, with at least one being an executive director.
Cessation of Business
- Notify SFC through WINGS-LIC at least 7 business days before intended cessation
- Request license revocation under section 195(1)(d) of the SFO
- Return license certificate within 37 days after cessation
- Submit audited accounts within four months after cessation
- Return all client funds and assets as soon as practicable
- Notify both SFC and HKMA at least 7 business days before cessation
- Return certificate of registration within 37 days after cessation
- Ensure proper notification through WINGS-LIC
Notification Requirements
Licensed persons and registered institutions must notify the SFC through WINGS-LIC of specified changes within designated timeframes.
Director Notifications
Directors must notify the SFC within 7 business days of becoming or ceasing to be a director of a licensed corporation.
Substantial Shareholders
Substantial shareholders must notify the SFC of changes in their particulars as specified in Schedule 3 of the Securities and Futures Rules.
Audited Accounts Submission
Licensed corporations and associated entities (except authorized financial institutions) must submit audited accounts and required documents within four months after each financial year end.
Upon cessation of business, audited accounts made up to the cessation date must be submitted within four months.
Financial Resources Returns
Licensed corporations must submit monthly financial resources returns to the SFC.
Corporations licensed only for Types 4, 5, 6, 9, and/or 10 that do not hold client assets may submit semi-annual returns instead.
Annual Licensing Fees
| Type | Activity | Amount |
|---|---|---|
| Licensed Corporation (per RA) | RA other than Type 3 | HKD $4,740 |
| Licensed Corporation | Type 3 | HKD $129,730 |
| Licensed Rep (not RO) | RA other than Type 3 | HKD $1,790 |
| Licensed Rep (not RO) | Type 3 | HKD $2,420 |
| Licensed Rep (RO) | RA other than Type 3 | HKD $4,740 |
| Licensed Rep (RO) | Type 3 | HKD $5,370 |
| Registered Institution | RA (not Type 3 or 8) | HKD $35,000 |
Annual fees must be paid within one month after each anniversary date of license or registration.
Late Payment Penalties
Annual Returns
Licensed corporations and individuals must submit annual returns through WINGS-LIC within one month after each anniversary date.
Submission Penalties
Continuous Professional Training (CPT)
Maintaining Professional Excellence
- 10 CPT hours per calendar year
- 5 hours must be directly relevant to licensed regulated activities
- 2 hours on ethics or compliance per calendar year
- New licensed individuals must complete 2 CPT hours on ethics within first 12 months
- Responsible Officers and Executive Officers: Additional 2 CPT hours on regulatory compliance
- Sponsor/Takeovers work: Additional 2.5 CPT hours on relevant topics
Record Keeping
Licensed corporations and individuals must maintain CPT records for minimum three years, available for SFC/HKMA inspection.
Annual confirmation of CPT compliance required through WINGS-LIC annual returns.
Online Courses
Online courses qualify as self-study CPT if they include independent assessments and sufficient duration records.
Intermediaries must notify the SFC of engagement in virtual asset trading, asset management services, and robo-advisory financial services.
Intermediaries are advised to discuss such activities with the SFC before commencement of business.
Registered institutions must submit updates on relevant information and organization charts to both HKMA and SFC within 14 days of any change taking effect.
Expert Compliance Support
Our team provides comprehensive ongoing compliance support to ensure your firm maintains the highest standards of regulatory excellence. Schedule a consultation to discuss your compliance framework.
Hong Kong Office
Room 634, Star House
3 Salisbury Road
Kowloon, Hong Kong
Email Us
info@legalcompliance.asia
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