Compliance Kickoff Training (English) Test

For Type 4 and 9 license firm not holding client asset, FRR is to be filed every 6 months for the half-year month end, filling must be made within 21 days to the SFC. However, if the license firm holds client money, all license firm would have to file FRR to the SFC monthly.

Even personal dealing is not allowed in the firm, annual holding declaration is still required to comply with the SFC requirement.

Under SFC Fund Manager Code of Conduct para 2.1.1 that requires that a Fund Manager should ensure that it has internal rules or provisions in its contracts of employment for relevant persons that relevant persons are required to disclose existing holdings upon joining a Fund Manager and at least annually thereafter.

Under SFC CPT Guidelines on Continue Professional Training, individuals are also required to retain appropriate records of all CPT activities completed in a calendar year. Documentary evidence sufficient to support their attendance or completion of the CPT activities such as certificates of attendance issued by the course providers and examination results should be kept by the individuals for a minimum of 3 years.

The SFC may request representatives and responsible officers of licensed corporations, and the HKMA may request relevant individuals and executive officers of registered institutions, to produce such documentary evidence as and when required.

Securities and Futures (Licensing and Registration)(Information) Rules and SFC Licensing Information Booklet set out in details on information and circumstances that will trigger notification and reporting to the SFC and approval from the SFC.

Securities and Futures Ordinance Part XV - Disclosure of Interests is to enable those investing in listed corporations to obtain relevant information on a timely basis so they can make informed investment decisions.

The regime thus formulated under Part XV also enables investors to identify the persons who control, or are in a position to control, interests in shares in listed corporations, and those who may benefit from transactions involving associated corporations of listed corporations.

It requires corporate insiders to give notice to both The Stock Exchange of Hong Kong Ltd and the listed corporation concerned on the occurrence of certain events such as individuals and corporations who are interested in 5% or more of any class of voting shares in a listed corporation, must disclose their interests, and short positions, in voting shares of the listed corporation.

​Suspicious transactions should be reported to Money Laundering Reporting Officer of a company that this role may also be taken up by Head of Legal or Compliance Officer. The reporting should be strictly confidential that the details of the relevant suspicious transactions should not be disclosed to others​. ​

The Hong Kong Inland Revenue Department Stamp Office has issued a Stamping Circular No. 01/2010 Stock Borrowing Relief – Filing of Return of Stock Borrowing Transactions to remind the borrowers under stock borrowing and lending agreements (“SBLA”) registered with Stamp Office on the requirement to file return of stock borrowing transactions under the prescribed conditions. Notwithstanding the registration of the SBLA with Stamp Office, the stock borrowing transactions which fail to meet the requirements for stamp duty relief under sections 19(12) and 19(12A) of the Stamp Duty Ordinance (“failed transactions”) are subject to stamp duty, and penalty where applicable. Filing of return must be filed for transactions under the SBLA during the 6 months period with the Hong Kong Inland Revenue Department ending 30 June/31 December.

Under the SFC Guideline on Anti-Money Laundering and Counter-Terrorist Financing issued in July 2012, the MLRO should play an active role in the identification and reporting of suspicious transactions. Principal functions performed are expected to include: (a) reviewing all internal disclosures and exception reports and, in light of all available relevant information, determining whether or not it is necessary to make a report to the JFIU; (b) maintaining all records related to such internal reviews; (c) providing guidance on how to avoid “tipping off” if any disclosure is made; and (d) acting as the main point of contact with the JFIU, law enforcement, and any other competent authorities in relation to ML/TF prevention and detection, investigation or compliance.

SFC does not restrict a SFC licensed person from acting as a director for another company. Please however note that the SFC is unlikely to be satisfied that a SFC licensed person is fit and proper to be licensed or to remain licensed if he holds a directorship in, or is engaged in the business of, a company other than his principal, where such directorship or engagement will likely prejudice the interests of investors due to conflicts of interest, confidentiality concerns or other factors. You should check with your compliance before accepting any directorship appointment.