Templegate Limited
Integrity & Credibility
(Trust  or Company Service Provider - Licence no. TC002809)
 

Fund investment / financial services company in Hong Kong

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Hong Kong offers wide range of financial products and services available for investment, capital and income formation and capital raising, the facilitation of cash and capital flows, capital and investment protection (hedging), safe custody and security, speculation and insurance.

License

An incorporated company wishes to carry on or holds itself out as carrying on a business in Hong Kong of dealing, giving investment advice, providing margin financing or leveraged foreign exchange traders is required to be registered with Securities and Futures Commission (SFC) and licenses are only available to corporations for regulated activities.

Regulated activities in Hong Kong

     There 9 types of regulated activities regulated by SFC.
    Type 1: Dealing in securities
    Type 2: Dealing in futures contracts
    Type 3: Leveraged foreign exchange trading
    Type 4: Advising on securities
    Type 5: Advising on futures contracts
    Type 6: Advising on corporate finance
    Type 7: Providing automated trading services
    Type 8: Securities margin financing and
    Type 9: Asset management

The setting up of a single company to cover 9 regulated activities to conduct one or more regulated activities subject to any conditions the SFC may wish to impose.

License issue authority

SFC is the single regime, issue licenses for Regulated Activities. SFC is an independent body under Securities & Futures Ordinance (SFO). SFC regulations are weighted towards the areas that pose the greatest risk to the markets and the participants. read more..

Structure of licensed corporations

Officers:- Licensed corporation carries on a Regulated Activities and marketing its services related to any regulated activities to the general public in Hong Kong must appoint at least 2 responsible officers to supervise, one of whom must be an executive director. Licenses will be issues to individuals after consideration of 'fit and person' criteria by SFC.

Responsible officer:- An executive director who is an individual will be required an approval from the SFC to act as a responsible officer.

Duties of responsible officer:- A responsible officer to supervise the conduct of a licensed corporation's one or more Regulated Activities.

Substantial Shareholder:-Substantial Shareholder has to be approved by the SFC, who has an interest in more than 10% of the nominal value of the issued share capital or 10% voting power or is able to exercise 35% or more of the voting power of another corporation which in turn has more than 10% of the voting power of the licensed corporation.

Capital Requirements

The licensed corporations must meet the capital requirement under Securities and Futures (Financial Resources) Rules (FRR) set by the SFC.
The licensed corporations are required to have and maintain at all times paid up share capital ranging from HK$5 million to HK$30 million depending on the regulated activity they conduct.
The SFC make specific rules to be applied to each and every asset of the licensee based on their analysis of how much these are worth if they had to be realized urgently. Click here to read
Licensed corporation must immediately notify the SFC if it fails to maintain the capital requirement.

Client Securities

A deposit is to be made for client securities and it must be with any an authorized financial institution in segregated account designed as a trust account or client account.
Licensed corporations must obtain a specific authority from client to withdraw or deal with the securities in the segregated account.

Monthly Returns

Every licensed corporation must submit monthly returns of liquid capital and required liquid capital with supporting information must enclosed declaration specified by the SFC. 

Appointment of auditors

A licensed corporation must appoint auditor within one month of being licensed and notify the SFC within 7 days of the appointment of auditor. Appointed of Auditor must be member of Hong Kong Institute of Certified Public Accountants (CPA) and practicing CPA.
 
We provide company incorporation services and related corporate services. If you would like to have more details please contact us.
 
 
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