Which license should a bank employee apply for? Will it be supervised by the SFC or HKMA?
What is a SFC license?
The full name of SFC is the Securities and Futures Commission, and it is the statutory regulator of the securities industry in Hong Kong. The Securities and Futures Commission was established in accordance with the Securities and Futures Ordinance to ensure that the securities industry is fair and orderly. The SFC is independent of the Hong Kong government, but is given the power to make subsidiary legislation, investigate the affairs of the securities industry, grant and revoke licenses for regulated activities in securities and futures. If a company (not a bank or an authorized institution) wants to be qualified for conducting a regulated activity, it needs to be licensed by the SFC for approval to conduct the regulated activity under the legal requirements.
What is a HKMA license?
The full name of HKMA is the Hong Kong Monetary Authority, which is the statutory regulatory authority for Hong Kong’s banking industry. The HKMA is an independent statutory body authorized by the Financial Secretary to manage Hong Kong’s foreign exchange reserves and maintain the linked exchange rate system. It is also responsible for the regulation and management of authorized banks or authorized financial institutions (i.e. licensed banks, restricted license banks and deposit-taking companies). In Hong Kong, the business of banks is diversified, and some banks even participate in the securities business. But the HKMA is not the main regulator of the securities industry. The SFC is the expert in this area. However, the SFC does not want to have more workload, and does not want to issue licenses directly to banksto avoid complicating the regulatory framework. Banks that need to conduct regulated securities business should be jointly supervised by the SFC and HKMA. The HKMA will provide direct front-line supervision, and the SFC will only cooperate passively.
Therefore, banks that conduct securities business will only be registered as “registered institutions” with the Securities and Futures Commission, not “licensed corporations” directly supervised by the Securities and Futures Commission. Therefore, employees who conduct regulated activities in “registered institutions” are also registered with the SFC and are called registrants, not licensees. It is also worth mentioning that although these registrants are registered with the Securities and futures Commission in name, in fact all forms submissions and communication are carried out with the HKMA. HKMA also handles complaints regarding registered institutions or registrants.
|Company Category||After conducting securities business, it will become||Name of Licensed/registered staff||Regulatory Authority|
|Companies that are not Banks||Licensed Corporation||Licensee||SFC|
|Authorized Financial Institution||Registered Institutions||Registrant||HKMA(+SFC)|
Licensing/registration, reporting system
Although the regulators are different, the commonalities between licensed corporations and registered institutions are that all individuals who wish to conduct regulated activities must meet the requirements of relevant examinations, academic qualifications and relevant competency guidelines, and that the employer must be responsible for applying or registering for the employees. No matter what, employees who work in licensed corporations or in registered institutions will need to abide by the same competency guidelines and take the same combination of examinations if they want to obtain license/registrations. As a result, most of the licensing requirements are not very different. If you wish to search for more general public information about a licensee, you should be able to search for their license number, license type, company, etc., you can go to the SFC’s public register and enter the licensee’s full name in Chinese or English, or the central entity number:
If you wish to search for a registrant’s basic information in the public register, such as license number, license type, company, etc., you can enter the full Chinese or English name in the HKMA’s public register (the first or last name cannot include extra spaces), or the registration number, and then enter the verification code:
Please be aware if there is inappropriate spacing, such as Chan Tai Man, the search results will not be displayed correctly when you enter ” Chan Tai Man” or “Chan Tai Man “,.
Which authority should a bank employee gain approval from?
Bank employees need to first consult the company’s human resources or compliance department and confirm which company they will represent. Because some banks do not directly conduct securities business with the bank itself. They may open a subsidiary company to separate different businesses. Most retail bank employees only represent the bank itself, therefore only HKMA registration is required, and not a license from SFC. However, a private bank employee may have the chance to represent a bank and a license cooperation simultaneously, this will occur especially when dealing with derivative transactions. Under this circumstance, the same person will be a licensed and registered person at the same time.
Also to mention, the licensee of the SFC has each assigned a unique license number. The first 3 digits of the license number are composed of English letters, and the last 3 digits are composed of numbers. A total of 6 digits will be formed which is subsequently named as the CE number. The registrant number of the HKMA is composed of 2 English letters and 4 numbers. A person can have both the SFC CE number and the HKMA registrant number, which are two different sets of numbers.
How can we help?
2CExam provides HKSI LE, IIQE, EAQE and SQE related exam preparation materials. We sell mock question banks for HKSI LE Papers 1, 2, 3, 5, 6, 7, 8, 9, 12 in Chinese and English; and bibles for HKSI LE Papers 1, 2, 6, 7, 8 in Chinese. We also offer 1 on 1 tutorial services. Besides, we have also made free tutorial videos for HKSI LE Papers 1, 2, 6, 7, 8, 12 and posted on public channels such as Youtube/ Bilibili/ Tencent/ Iqiyi. 2CExam has been an exam training expert for years. Should you need any help please visit www.2cexam.com or contact us through:
Phone +852 2110 9644 Email: email@example.com Wechat: hk2cexam WhatsApp: +852 9347 2064
+852 2110 9644
+852 9347 2064
HKSI LE Securities Exam Info For Dummies What papers should I take The differences between a SFC Responsible Officer (RO), HKMA Executive Officer (EO) and a Sale Representative (Rep) https://2cexam.com.hk/a1061_eng/ Which paper I should take： https://2cexam.com.hk/A1064_eng/ Waiving LE Papers 7-12： https://2cexam.com.hk/A1015_eng/ FAQ about exemption： https://2cexam.com.hk/A1018_eng/ Exam Registration Registration…
2CExam is excellent at preparing candidates for professional examinations. Why do so many people choose 2CExam’s products and watch 2CExam’s video classes? 2CExam provides a large number of Youtube video classes, including HKSI LE Papers 1, 2, 6, 7, 8, 12 Chinese courses, HKSI LE Paper 1 English courses, IIQE Papers 1, 2,…
Do bibles include practise questions? Bible and Pass Paper Question Bank are two separate products. “Bible” is composed by us according to HKSI’s study manual and does not consist of any mock questions. It is a study note available in Chinese only as of now. “Pass Paper Question Bank” includes questions prepared by us, with…
How are mock questions written by 2CExam? Are the questions past paper questions? What are the specialties and advantages of 2CExam’s question banks?
How are mock questions written by 2CExam? Are the questions past paper questions? Due to intellectual property issues, 2CExam mock questions are not copied from the past papers, but composed by their own editors. The questions are different from the questions you are going to see in the actual exam. If they bear any resemblance…
There’s a money-back guarantee for 2CExam’s products? 100% full refund? Do they really refund? Absolutely we do refund. We only make promises that we can keep. As long as candidates follow the instructions on the terms and conditions of Money-back Guarantee, we offer 100% full refund. Why are we so confident? It is because based…
Do you need to take the HKSI LE securities exam / IIQE insurance exam / EAQE, SQE real estate exam? Are you upset about how to stuff the considerable knowledge into your brain? 2CExam is here to help! Our motto is “Despise Learning, Secure Passing!” Our company provides various exam related products and…
Can Top Up Degree be exempted from HKSI LE securities examination? Can I be exempted without previously studied finance?
The Guidelines on Competence of the SFC specify that as long as students meet the specified level of academic qualifications and/or work experience, they can be exempted and do not need to take the HKSI LE Securities Examination Papers 7-12. Exempted students only need to take the HKSI LE paper 1, which saves time,…
Some students who have taken the exams several times may pay attention to both the Chinese and English questions simultaneously, they will find that the content of the questions in Chinese or English exam is actually the same. Sometimes the topics are more difficult to understand in Chinese, and some topics are more difficult…
The HKSI LE exam provides two languages, Chinese and English, and both are provided during the exam. Some students who have taken the exams several times may pay attention to both the Chinese and English questions simultaneously, they will find that the content of the questions in Chinese or English exams is actually…
From time to time, students who purchase mock questions will ask us whether it is better to take the IIQE exam in Chinese or English? Some students who have taken the exams several times may pay attention to both the Chinese and English questions simultaneously. They will find that the content of the…