Securities & Futures Commission of Hong Kong

Regulated activities

Regulated activities as defined by the Securities and Futures Ordinance are as follows:

Licence Regulated activity Examples
Type 1  Dealing in securities 
  • Trading /broking stock options for clients
  • Trading bonds for clients
  • Buying / selling mutual funds and unit trusts for clients
  • Placing and underwriting of securities 
Type 2 Dealing in futures contracts 
  • Trading / broking index or commodities futures for clients
  • Buying / selling futures contracts for clients
Type 3 Leveraged foreign exchange trading
  • Buying / selling foreign exchange for clients on a margin basis 
Type 4  Advising on securities 
  • Giving investment advice to clients relating to the sale / purchase of securities
  • Issuing research reports / analyses on securities
Type 5  Advising on futures contracts 
  • Giving investment advice to clients relating to the sale / purchase of futures contracts
  • Issuing research reports on futures contracts 
Type 6  Advising on corporate finance 
  • Acting as sponsor for listing applicant in an initial public offering
  • Advising on the Codes on Takeovers and Mergers and Shares Repurchases
  • Advising listed companies on compliance of Listing Rules 
Type 7  Providing automated trading services 
  • Operating an electronic trading platform for matching client orders 
Type 8  Securities margin financing 
  • Providing financing to clients for their purchase of stocks in return for clients' stocks as collaterals 
Type 9  Asset management 
  • Managing a portfolio of securities or futures contracts for clients on discretionary basis
  • Managing funds on discretionary basis 
Type 10 Providing credit rating services 
  • Preparing reports on the credit worthiness of companies, bonds and sovereigns 
3.8382 s