How should I apply for a license if I want to engage in the securities industry? What conditions must I meet?

In the finance, banking, and securities industries, there are millions of assets flowing in and out everyday to say the least. Many people are eager to meet wealthy people, earn a generous amount of commission income, and even easily be in control of the stock market. However, to go back to the basics, if you want to engage in a securities, derivatives, asset management and other financial services-related industry, how should you apply for a license?

What conditions must be met?

First, to apply for a securities business license, you need to meet the “Guidelines on Competence” issued by the Securities and Futures Commission. For example, you need to pass the HKSI LE (Licensing Examination organised by the HKSI) Paper 1. If you do not meet the exemption conditions, you need to take at least 2 other exam papers and obtain pass grades within 3 years.

Please refer to the following article for the exemption conditions of HKSI LE https://2cexam.com.hk/a1015_eng

Secondly, the financial status of the applicant will also be reviewed, and the applicant cannot be currently under bankruptcy status.

Thirdly, the integrity and reliability of the applicant will also be considered, such as whether the applicant has served as a director or senior manager of an insolvent company in recent years.

Fourthly, some people may wonder if the staff of the Securities and Future Commission does not know you, how do they evaluate your character? The staff of the SFC will also explore your past criminal records, on whether you have ever had disciplinary actions, known frauds, misrepresentations, etc. in other licensed corporations in the past. 

Fifthly, the minimum academic requirement for a license is to obtain passing results in Chinese+Mathematics or English+Mathematics in the Hong Kong Certificate of Education Examination (HKCEE) or the Hong Kong Diploma of Secondary Education Examination (HKDSE). A candidate does not need to take the exam mentioned if he/she can provide proof of internationally recognized professional qualifications or securities-related industry experience.

For more detailed information, please refer to the “Guidelines on Competence”  issued by the SFC

https://www.sfc.hk/-/media/EN/assets/components/codes/files-current/web/guidelines/guidelines-on-competence/Guidelines-on-Competence.pdf

How to apply for a license?

Once you have met the requirements of the Guidelines on Competence, you need to find a job and then your company will negotiate with the SFC about the license application. Students need to be cautious on avoiding potential conflict of interest. Some people will ask if it is possible to be listed in more than one company. In most circumstances, being listed in multiple companies is not allowed; but there is a very common situation, where candidates are required by the company to be listed in both the parent and subsidiary companies or two subsidiaries that are under the same holding company at the same time. 

After passing the exam and obtaining a job, you need to check with the HR or the compliance department on what documents are required to be submitted. If you wish to be more meticulous, you can even prepare some necessary documents in advance. For example, if you want to be exempted from taking HKSI LE Papers 7-12, you will need to prepare a certificate proving your academic qualifications/work experience, you may also include a paragraph explaining how the degree is related to economics, business administration, law, finance and accounting, or how the work experience is related to the securities industry. Secondly, you also need to submit your personal information to the colleague who is going to submit the license application form for you; You must include your employment records in the past 5 years, as well as other directorships and business involvements, to declare your personal interests, hence to avoid conflicts of interest at work in the future.

After submitting all the documents to the HR or compliance department, your duties in applying for your license are complete, the rest of the application procedure will be done by your HR or compliance colleagues. They will submit your application to the Securities and Futures Commission (SFC), as well as answering any questions raised by the SFC; in saying that, your colleagues may also need your help in the process.

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, 11, 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, 11, 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:

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