In Hong Kong, although the fund itself does not require a license, the fund manager does need one. To manage funds or assets in Hong Kong, asset management companies/fund managers usually need to obtain the SFC’s Type 9 regulated activity (Asset Management) license.
In asset management activities in Hong Kong, asset management companies/fund managers are required to pay profits tax from the management fees and performance fees they collect.
As a result, many companies set up funds or other legal entities overseas to manage assets in order to avoid paying profits tax.
For example, many companies set up asset management companies in the Cayman Islands or other tax havens to collect client management fees, thus avoiding paying a large amount of profits tax.
At the same time, many asset management companies want to operate in Hong Kong to gain more market information and investment opportunities.
In this case, the best solution is to set up asset management companies in both Hong Kong and the Cayman Islands. The Hong Kong fund manager/asset management company appoints the Cayman Islands fund manager/asset management company to manage the fund. The Hong Kong fund manager/asset management company then provides “investment advice and introduces investment opportunities” to the overseas fund manager/asset management company. This approach achieves tax avoidance while also accessing more investment opportunities in Hong Kong.
In this situation, as the Hong Kong asset management company/fund manager provides advice and introduces investment opportunities to other fund managers rather than directly managing assets and not touching clients’ assets, they also need to obtain a Type 4 regulated activity (Advising on Securities) license.
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
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
-
Phone:
+852 2110 9644
-
Email:
-
WhatsApp
+852 9347 2064
-
WeChat
hk2cexam
Interesting Articles
Is the Securities, Insurance or Real Estate Industry Better? Comparing Incomes amongst Finance Industries
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?
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…
5 Reasons You Should Not Study Only the IIQE note
Students who are taking the IIQE or took it before would know that the study note is a several-hundred pages exam coverage full of long paragraphs. Not to mention the length of the texts, the expression of ideas requires the readers a lot of concentration to understand. Thus, some candidates think only studying the mock…
Can’t Earn a Lot with Low Educational Background? 3 Major Industries You Can Make a Fortune in
In today’s society, because of education inflation, having only a college degree may not help you get a job with a high salary. While there are many people who don’t actually have a particular career path inclination, as long as the salary is good enough, people choose that path. In fact, there are three major…
10 Tips for Preparing the HKSI LE Securities Exam
Many people think that the coverage of the HKSI LE securities exam is broad, and we are here to help you. The following are 10 small tips to improve the efficiency of revision and enhance the understanding of concepts! Improve Studying Efficiency Question Answering Skills How can we help? 2CExam provides HKSI LE, IIQE, EAQE…
How to change the game by passing the IIQE exam even with a low educational background?
You do not need a strong educational background to be successful in the insurance industry Always feel that your salary is low, and you cannot be promoted due to a low educational background? Do you want to have higher achievements and a faster and more professional career path? In fact, education is not the main…
9 Easy Secrets for Preparing the HKSI LE Licensing Examination
Before taking the HKSI LE securities exam, students need to do some preparations: 1. Registration Students need to register for the exam on HKSI’s website first. 2. Download the study manual Students can download it for free after registration. 3. Search 2CExam’s free video courses Our senior tutors has navigated the…
5 Reasons You Should Not Study Only the HKSI LE manual
Students who are taking the HKSI LE or took it before would know that the study manual is a several-hundred pages exam coverage full of long paragraphs. Not to mention the length of the texts, the expression of ideas requires the readers a lot of concentration to understand. Thus, some candidates think only studying…
5 Key Points Mainlander Candidate Must Know When Partaking in the HKSI LE Exam
What is the HKSI LE exam? The full name of the exam is called the Licensing Examination, or LE for short. The organizer of the exam is not the Securities and Futures Commission (SFC), but a non-government organization named Hong Kong Securities and Investment Institute, or HKSI for short. Generally speaking, this exam is…
Why do people still buy materials from 2CExam while PEAK provides free study notes?
In addition to organizing IIQE exams, VTC PEAK Academy will also provide students who take the IIQE exam with the exam coverage called the Study Note. It depicts what is covered in the exam with hundreds of pages and full of paragraphs. It is lengthy and contains a lot of datas and examples that…