17 November 2021
Following the Securities and Futures Commission’s (“SFC”) publication of the Consultation Conclusions on Proposed Enhancements to the Competency Framework for Intermediaries and Individual Practitioners on 18 June 2021, the proposed enhancements will be reflected in the revised Guidelines on Competence (“Competence Guidelines”) and the revised Guidelines on Continuous Professional Training (“CPT Guidelines”), both of which will become effective on 1 January 2022. In this two-part series, we will focus on the key changes under the Competence Guidelines for Responsible Officers and Licensed Representatives.
Responsible Officers (“RO”)
For individuals applying to be a RO, there are 3 routes for satisfying the revised competency requirements (an Executive Officer[1] will have to meet the same competence requirements as an RO).
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Option A |
Option B |
Option C |
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Academic/Professional Qualification |
Degree in accounting, business administration, economics, finance and law (“Designated Fields”); other degree (with passes in at least two courses in the Designated Fields); or professional qualifications in law, accounting or finance, or Chartered Financial Analyst, Certified International Investment Analyst and Certified Financial Planner |
Other degree (without passes in two courses in the Designated Fields) |
Attained Level 2 in Chinese/English and Mathematics in HKDSE; or Grade E or above in Chinese/English and Mathematics in the HKCEE; or passes in Chinese/English and Mathematics in other high school public examinations equivalent to HKDSE |
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Relevant Industry Experience |
At least 3 years over the past 6 years |
At least 3 years over the past 6 years |
At least 3 years over the past 6 years |
At least 5 years over the past 8 years |
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Recognised Industry Qualifications (“RIQ“) /Extra Continuous Professional Training (“CPT”) |
N/A |
Obtained relevant RIQ or completed relevant Extra CPT |
Obtained relevant RIQ |
Completed relevant Extra CPT |
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Management Experience |
2 years
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Local Regulatory Framework Papers (“LRPs”) |
Pass |
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Licensed Representatives (“LR”)
For individuals applying to be a LR, there are 3 routes for satisfying the revised competency requirements (a Relevant Individual (“ReI”)[2] will have to meet the same competence requirements as an RO).
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Option A |
Option B |
Option C |
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Academic/Professional Qualification |
Degree in Designated Fields; other degree (with passes in at least two courses in the Designated Fields); or professional qualifications in law, accounting or finance, or Chartered Financial Analyst, Certified International Investment Analyst and Certified Financial Planner |
Other degree (without passes in two courses in the Designated Fields) |
Attained Level 2 in Chinese/English and Mathematics in HKDSE; or Grade E or above in Chinese/English and Mathematics in the HKCEE; or passes in Chinese/English and Mathematics in other high school public examinations equivalent to HKDSE |
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Relevant Industry Experience |
N/A |
At least 2 years over the past 5 years |
N/A |
At least 2 years over the past 5 years |
N/A |
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Recognised Industry Qualifications (“RIQ“) /Extra Continuous Professional Training (“CPT”) |
N/A |
N/A |
Obtained relevant RIQ or completed relevant Extra CPT |
Completed relevant Extra CPT |
Obtained relevant RIQ |
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Local Regulatory Framework Papers (“LRP”) |
Pass |
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Certain grandfathering arrangements are available for licensees who have been licensed before the effective date of the revised guidelines but will no longer meet the revised academic requirements. There are also exemptions for the RIQ and LRP requirements.
Contact us today if you need assistance with your RO/LR application or help with reviewing your compliance with the revised Competence Guideline.
Stay tuned for our next update in this series for a summary on the additional competence requirements for ROs and Eos advising on matters falling within the Codes on Takeovers and Mergers and Share Buy-backs and key changes to the CPT Guidelines.
For further information, please contact:
Charing Yu, Hauzen LLP
charingyu@hauzen.hk
[1] A person who applies to the HKMA for consent or who has been given consent to act as an executive officer of an Registered Institution under section 71C of the Banking Ordinance
[2] A relevant individual whose name is to be or is entered in the register maintained by the HKMA under section 20 of the Banking Ordinance
