In Hong Kong’s fast-evolving financial market, asset management activities are subject to a robust regulatory regime designed to protect investors and maintain market integrity. For legal professionals advising fund managers, financial institutions, or fintechs, understanding the Securities and Futures Ordinance (Cap 571) (SFO) is essential.
To support practitioners, we are pleased to offer a complimentary Practice Note, Asset Management under the Securities and Futures Ordinance, produced in partnership with Howse Williams and available via Lexis+ Practical Guidance Hong Kong – Financial Services Module.
Licensing under the SFO: What you need to know
The SFO regulates Hong Kong’s securities, futures, and leveraged foreign exchange markets, setting out licensing and registration requirements for regulated activities, including asset management.
Under Schedule 5, asset management includes real estate investment scheme management and securities or futures contracts management. Firms engaged in the latter must assess whether their activities trigger the need for a Type 9 (asset management) licence from the Securities and Futures Commission (SFC).
The Practice Note clarifies this distinction and outlines when licensing obligations apply, offering practical insight into exemptions and compliance considerations.
Virtual assets: The next regulatory frontier
With the rapid growth of virtual assets, the SFC has intensified oversight of fund managers and platforms operating in this space. The Practice Note reviews recent guidance and enforcement actions, helping practitioners understand when virtual asset activities fall within the SFO’s definition of 'securities' or 'futures contracts.'
It also highlights how the SFC imposes specific licensing conditions even when underlying virtual assets do not qualify as securities — an increasingly relevant area for Hong Kong’s financial and legal professionals.
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