The differences between a SFC Responsible Officer (RO), HKMA Executive Officer (EO) and a Sale Representative (Rep)

June 30, 2021

 

The different regulatory agencies

 

Before explaining the differences between a responsible officer (RO), HKMA’s executive officer (EO) and sales representative (Rep), you must first know that there are two regulatory agencies that regulates companies that are engaging in securities business: the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA).The regulatory body that regulates the securities industry is the Securities and Futures Commission; However, there is one circumstance where the HKMA will jointly supervise with the SFC; that is, when banks are looking to engage in securities business. 

 

Licensed corporation vs registered institution

 

Generally speaking, companies that are not banks and non-approved financial institutions wishing to conduct securities-related businesses need to apply for a license from the Securities Regulatory Commission and become licensed corporations. Since banks are supervised by the Hong Kong Monetary Authority, in order to avoid complicating the regulatory framework, banks engaged in securities business will register with the SFC instead of directly applying for licenses, so they are called registered institutions. Some banks will set up subsidiaries to apply for a license directly from the Securities and futures Commission and become a licensed corporation, but some will choose to register as a registered institution, or to use two different companies to do both simultaneously. Therefore a natural person will have the chances of having both a SFC license, as well as Monetary Authority registration. 

 

Responsible Officer vs Executive Officer 

 

For the time being, there are 10 types of regulated activities that require licensing or registration. If a licensed corporation wants to carry out these regulated activities, at least 2 Responsible Officers (RO) are needed to be assigned as a senior management person, to supervise the operation of such activities and whether employees are legally compliant. As per registered institutions, they are also required to employ at least two senior managers that are responsible for the same job, but in a registered institution these people are named Executive Officers(EO). Each RO or EO can be responsible for more than 1 regulated activity. In other words, suppose a license  corporation applies for type 1, 2, 4, 5 and 9 activity licenses, the organisation must employ 2 responsible officers who are eligible to apply for a type 1、2、4、5、9 license to partake in the management role, or an organisation can decide to separate the different types of activities management and arranged at least two responsible officers to supervise each type of activities as a stand alone. 

 

If you want to be an RO or EO, you need to refer to the Guideline on Competence issued by the Securities and Futures Commission, including obtaining a passing results in a designated exam combination(s) of the Hong Kong Licensing Examination organised by the HKSI  ; it is also required that one must have 3 years of experience in the securities industry and 2 years of experience in managing subordinates, before one may be qualify as an RO or EO. For details, please refer to: Guidelines on Competence 

 

What is a licensed/technical representative?

 

In licensed corporations or registered institutions, employees who are not responsible for supervisory roles, but are required to obtain/register for a license due to conduction of regulated activities, are called licensed representatives.

 

How to find SFC records to verify the identity of its responsible officer/licensed representative? 

 

You can visit the Public register of licensed persons and registered institutions on the SFC website:

  1. Link: https://apps.sfc.hk/publicregWeb/searchByName?locale=en
  2. Enter the person’s full name in Chinese or English, or CE number
  3. Search 

 

How to find HKMA records to verify the identity of its supervisor/sales representative?

 

You can visit the HKMA Register of Securities Staff of AIs

  1. Link: https://apps.hkma.gov.hk/eng/index.php?c=search&m=search_by_name
  2.  Read and agree to the statement before proceeding
  3. Enter the person’s full name in Chinese or English (the first or last name cannot include extra spaces), or the registration number; for example: Chan Tai Man, if you enter ”  Chan Tai Man” or “Chan Tai Man  “, the appropriate search results can’t be displayed
  4. Enter confirmation code
  5. Search

 

How can we help?

2CExam provides HKSI LE, IIQE, EAQE and SQE related exam preparation materials. We sell mock question banks for IIQE Papers 1, 2, 3, 5 and MPFE in Chinese and English; and bibles for IIQE Papers 1, 2, 3, MPFE in Chinese. We also offer 1 on 1 tutorial services. Besides, we have also made free tutorial videos for IIQE Papers 1, 2, 3 and MPFE 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 protected] Wechat: hk2cexam WhatsApp: +852 9347 2064

Please support us by leaving comments and likes if you think this article helps you!

You can scan or click on the QR codes to visit our social media.

Latest Article

Categories

過往文章

Contact US

Interesting Articles

Why can’t you learn the practise questions by rote when studying for the IIQE Insurance Exam?

May 25, 2022

Students who have taken/ who are going to take the IIQE should know the study note is a several-hundred pages, paragraph form booklet illustrating the exam coverage. Not to mention the length of the text, the expression of concepts requires readers’ intense concentration. So some candidates think that doing only the practise questions should be…

Why can’t you learn the practise questions by rote when studying for the HKSI Licensing Examination (LE)?

May 18, 2022

Students who have taken/ who are going to take the HKSI LE should know the HKSI study note is a several-hundred pages, paragraph form booklet illustrating the exam coverage. Not to mention the length of the text, the expression of concepts requires readers’ intense concentration. So some candidates think that doing only the practise questions…

How to register for the IIQE Insurance Intermediary Qualifying Examination?

May 11, 2022

The IIQE exam should be registered at PEAK instead of the Insurance Regulatory Bureau. The IIQE exam places are quite sought-after. If students have an urgent need to take the exam, students should decide to register as soon as possible. The test period will be issued on a day between the 12th to 17th of…

How to register for the HKSI LE Securities and Futures Practitioner?

May 4, 2022

The HKSI LE exam must be registered at HKSI, but not the SFC. There are two methods for registration. The most popular one is online registration, followed by in-person registration. How to register for HKSI exam Register online: 1. To register for the exam, you must first register as a member of HKSI 2. Click…

Losing Friends and Family Is Inevitable Once Joined the Insurance Industry? 10 Benefits of Working in The Insurance Industry That Can Overturn Your Stereotypes

April 20, 2022

Must people in the insurance industry lose their friends and family? NO! It is not that you won’t have friends when you join the insurance industry. In fact, it depends on whether you use the correct method to sell. When you only care about commissions and don’t care about the needs of your customers, selling…

What kind of jobs can I get after I pass the IIQE Hong Kong Insurance Exam?

April 13, 2022

After passing the IIQE (Insurance Intermediary Qualifying Examination) in Hong Kong, students can start looking for jobs. What job options are there? Bank Relationship Manager (RM) / General Banking Officer (GBO) / Personal Banking Officer / Assistant Relationship Manager (ARM) Some sales positions in the bank, including Relationship Manager (RM) and their assistant – Assistant…

What job opportunities can I get in Hong Kong after passing the HKSI LE securities exam?

April 7, 2022

First, I would like to clarify that some people do not take the HKSI Licensing Examination (also known as LE exam) to find a job, but just to learn more about the financial/ securities market and equip themselves with the necessary knowledge in a compact and more organised way. This article will not cover information…

10 Benefits of Working in the Securities Industry Which Can Bring You a Whole New Perspective

March 30, 2022

Is there an insufficient supply of positions in the securities industry? There are contradictory opinions on the internet. Some say that the financial industry is in demand for talents; others say that the financial industry has burst, and there are too many monks with only a little porridge. From my experience in the recruitment industry…

Is the Securities, Insurance or Real Estate Industry Better? Comparing Incomes amongst Finance Industries

March 22, 2022

Securities and Banking  According to statistics on the Internet and our experience, in Hong Kong, even for some common junior or middle-level positions in the financial/ securities industry, such as risk analyst, research analyst, and compliance officer, the average base salary is between HK$20,000 and 30,000 per month. Many people who have sufficient work experience…

What is updated in 2022 in IIQE Paper 1 Insurance Exam Study Manual? Is the 2017 or older version sufficient for the upcoming exams?

March 18, 2022

The 2021 version of IIQE Paper 1 was officially applicable to exams in 2022 Insurance Authority has taken over the supervision of the insurance industry for more than two years. The IIQE Paper 1 (Insurance Intermediary Qualification Examination) finally put the new regulatory structure in the study manual, and the new study manual can be…