Circular to All Intermediaries - Frequently Asked Questions on Corporate Professional Investor Assessment

8 Sep 2020



Under paragraph 15 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (the Code), an intermediary is required to, among other things, assess whether a Corporate Professional Investor meets certain criteria before the intermediary can be exempted from certain Code requirements when dealing with the Corporate Professional Investor in relation to relevant products or markets.  In January 2015, the Securities and Futures Commission (SFC) issued a set of Frequently Asked Questions (FAQs) to provide practical guidance on how intermediaries should conduct such an assessment.

In light of the queries from the industry, the SFC has updated the answer to Question 2 of the abovementioned set of FAQs to provide further guidance on the assessment of the corporate structure and investment process of Corporate Professional Investors, in particular those investment vehicles owned by family trusts or family offices that engage investment professionals to manage their investments. 

Intermediaries should note that the SFC will take into account compliance with the guidance in the FAQs to determine whether a licenced or registered person is fit and proper to carry out the relevant regulated activities. 

A copy of the revised FAQ is attached to this circular for your information.  The full set of the FAQs is available on the SFC website at http://www.sfc.hk under the section “Regulatory functions – Intermediaries – Supervision – FAQs – Professional Investors”. 

Should you have any queries regarding the contents of this circular, please contact Ms Kammy Kwok at 2231 1455 or your case officer.

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission

Enclosure

End

SFO/IS/031/2020


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Page last updated : 8 Sep 2020