What is an HKMA license?

May 16, 2023

The Hong Kong Monetary Authority (HKMA) is the central banking institution of Hong Kong.

It was established on April 1, 1993, through the merger of the Exchange Fund and the Office of the 

Commissioner of Banking. As an independent government department separate from the Hong Kong 

government, the HKMA is primarily responsible for maintaining currency stability, promoting the stability and soundness of the financial system, consolidating Hong Kong’s position as an international financial center, an managing the Exchange Fund.

HKMA-related institutions include the Hong Kong Mortgage Corporation Limited, the Hong Kong Note Printing Limited, the Hong Kong Institute for Monetary and Financial Research, the Hong Kong Interbank Clearing Limited, and the Exchange Fund Investment Limited.

According to the Banking Ordinance, the HKMA is responsible for granting, suspending, and revoking accreditation to authorized institutions and has discretionary powers to approve or reject accreditation applications to operate banking or deposit-taking businesses in Hong Kong.

Authorized institutions include licensed banks, restricted license banks, and deposit-taking companies.

In Hong Kong, banks have diversified businesses, and some banks participate in securities trading. Although the HKMA is the statutory regulatory body for the banking industry in Hong Kong, the SFC is the primary regulatory body for the securities industry in Hong Kong.

Therefore, if a bank wants to engage in securities business regulated by the SFC, it needs to register with the SFC. The registration process involves the bank submitting application materials to the HKMA, which will review and submit them to the SFC for registration.

Banks engaging in securities business activities regulated by the SFC are jointly regulated by the HKMA and the SFC, with the HKMA remaining as the frontline regulatory authority.

Therefore, banks conducting securities business are registered as “registered institutions” with the SFC, rather than being directly licensed as “licensed corporations” by the SFC. Employees engaged in regulated activities of registered institutions are referred to as “registered persons” after registration with the SFC, rather than licensed persons.Therefore, the term “HKMA license” commonly used in the industry refers to registration with the SFC as a registered institution or registered person, not a license issued directly by the SFC. The HKMA handles complaints and disciplinary actions related to registered institutions or registered persons.

If you want to find data on a registered person, you can log in to the HKMA’s Securities Industry Authorized Person Register and search by name, registration number, registered institution, and other criteria.

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 protected] Wechat: hk2cexam WhatsApp: +852 9347 2064

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