2026 Authoritative Guide

Hong Kong Type 4 licence

Securities provide advice

An authoritative application guide based on SFC official guidelines and Aiying's practical experience. Comprehensive analysis of application requirements, business functions, capital needs, application process, and acquisition pathways. [SFC Type 4 license, Hong Kong Type 4 license, securities advisory license Hong Kong]

What is a Class 4 license plate?

The Hong Kong Securities and Futures Commission's Type 4 license (advising on securities) is a license for regulated activities issued under the Securities and Futures Ordinance.

文件 (1)

Legal basis

Under Schedule 5 to the Securities and Futures Ordinance (SFO), Type 4 licence authorizes licensees to engage in the "advising on securities" business. It is directly regulated by the Securities and Futures Commission (SFC).

Business scope

It covers securities investment advice, research report publication, and securities analysis services. Professional investment advice can be provided on securities products such as stocks, bonds, and funds.

Market position

As a leading financial center in Asia, Hong Kong's Type 4 license is an essential qualification for providing securities advisory services and enjoys high international recognition and regulatory credibility.

Legal definition

"Advising on Securities"

To provide advice on the value of securities or on buying or selling securities or subscribing to securities or exercising any rights related to securities, including issuing research reports or analysis reports.

Source: Schedule 5 of the Securities and Futures Ordinance · SFC Licensing Handbook, July 2025 edition

Comparison of Type 4 with related license plates

Contrast Dimensions Type 4 license (securities advisory) Type 1 license (securities trading) Type 9 license (asset management)
Core Business Provide securities investment advice Executing securities trading transactions Managing client securities assets
Minimum quick capital HK$10 (Restricted Mode) HK$3 million HK$200 million
Typical business Research reports, investment advisors Stock brokerage, securities trading Fund management, portfolio management
Common combinations Single card number 4 / 1+4 / 4+9 1+4 / 1+4+9 4+9 / 1+4+9
Attached exemption Exemption may be granted (if attached to No. 1 or No. 9). not applicable not applicable

Business Function Breakdown

Type 4 licenses cover a variety of securities advisory-related business functions, and companies can choose to apply for one based on their own needs.

Securities investment advice

We provide professional investment advice to clients on the value, timing of buying and selling, and price of securities, including individual stock analysis and portfolio allocation recommendations.

Research Report Released

We publish securities research reports and investment analyses, providing professional research services to institutional investors, including industry research and in-depth company reports.

Securities portfolio recommendations

We provide clients with securities portfolio allocation advice, including asset allocation strategies, risk management recommendations, and rebalancing solutions.

Security Token Recommendation

Provide compliant investment advice on security tokens (STOs). Note: A VA upgrade is required based on a Type 4 license.

Business Function Selection Guide

  • Independent advisory firm: We recommend applying for a Type 4 license, focusing on securities research and investment advice, with the lowest capital requirement (HK$10 in quick capital).
  • Comprehensive securities service providers: It is recommended to apply for both Type 1 and Type 4 licenses simultaneously, which can provide investment advice while executing transactions, offering clients a one-stop service.
  • Asset management institutions are advised to apply for licenses numbered 4+9, covering the entire business chain of securities advisory and asset management.
  • Web3 Compliance Advisor: Offers compliant investment advice on security tokens when applying for a VA upgrade based on a Type 4 license.

Business Scenario Matching Guide

Choose the most suitable application plan based on different capital sizes and business types.

Scene 1

Independent investment advisor AI investment advisor

Focusing on securities research and investment advice, without executing trades or holding client assets, this approach is suitable for independent advisory firms.

Capital requirement: HK$10+ in quick cash
License plate configuration:No. 4 license plate(Subject to conditions)
Application path: Apply directly

 
Scene 2

Securities research institutions

We publish securities research reports and investment analyses, providing professional research services to institutional investors.

Capital requirement: HK$10+ in quick cash
License plate configuration:No. 4 license plate
Application path: Apply directly

Scene 3

Securities broker + consultant

A comprehensive securities service provider that offers investment advice to clients while executing securities transactions.

Capital requirement: HK$300+ in quick cash
License plate configuration:1+4 license plates
Application path: direct application or acquisition

 
Scene 4

Web3 Compliance Advisor

Providing security token (STO) compliance advice for Web3 projects requires applying for a VA upgrade before it can proceed.

Capital requirement: HK$10+ in quick cash
License plate configuration:Type 4 + VA Upgrade
Application path: Apply directly

 
Scene 5

Comprehensive asset management

We provide securities investment advice and manage client portfolios, covering the entire advisory and asset management business chain.

Capital requirement: HK$300+ in quick cash
License plate configuration:4+Type 9 licences
Application path: Apply simultaneously

 
Scene Six

Comprehensive financial services

It provides a one-stop service for securities trading, investment advice, and asset management, making it suitable for large financial institutions.

Capital requirement: HK$300+ in quick cash
License plate configuration:License plates 1+4+9
Application path: Acquisition preferred

 
risk assessment

Attached exemption mechanism (important)

If Type 4 activities are entirely ancillary to the securities trading business under a Type 1 license, or solely generated from the asset management business under a Type 9 license, the licensee may not need to obtain a separate Type 4 license. This also includes simply advising wholly-owned subsidiaries or holding companies.

Application Requirement

Understand the full requirements for a Type 4 license to ensure your business complies with SFC regulatory standards.

Capital requirements

The following are the minimum financial resource requirements stipulated in the Securities and Futures (Financial Resources) Rules.

Standard application mode

Subject to conditions (does not hold client assets)

The common application model for a Type 4 license focuses on providing securities investment advice and does not involve client asset custody.

Minimum quick capital

HK$100,000

Paid-up share capital

Not applicable (N/A)

When combined with other licenses

Combined applications (such as holding both Type 1 and Type 9 licenses simultaneously)

When applying for a Type 4 license in combination with a Type 1 (Securities Trading) or Type 9 (Asset Management) license, the capital requirement will be based on the highest of the two licenses in the combination.

1+4 combination quick funds

HK$3,000,000 (customer funds)

 

4+9 combination quick funds

HK$2,000,000 (customer funds)

When applying for a combination of multiple licenses, the capital requirement should be the highest among all types of licenses.

Personnel Requirements

  • Number of ROs: At least two responsible personnel (ROs) directly supervise the regulated activities.
  • Location requirement: At least one RO (Responsible Officer) must be available in Hong Kong at any time to oversee operations.
  • Board requirements: At least one RO must be an executive director.
  • Qualifications: Pass the relevant HKSI professional qualification examination and have relevant industry experience.

Company registration requirements

It must be a company incorporated in Hong Kong or an overseas company registered with the Hong Kong Companies Registry.

Official Fee Overview

SFC application fee (per category of regulated activity)official

HK$4,740

Annual license fee (for licensed corporations, per class)official

HK$4,740

Licensed representative annual fee (excluding RO, per class)official

HK$1,790

Licensed Representative Annual Fee (RO, per class)official

HK$4,740

Application Requirements Summary

Conditions and Items Type 4 (Standard Model)
Minimum quick capital HK$100,000
Paid-up share capital Not applicable (N/A)
Responsible Personnel (RO) At least two, of which at least one must be an executive director.
RO Site Requirements At least one Operations Responsible Person (RO) can monitor operations in Hong Kong immediately.
Company registration Hong Kong registered companies or overseas companies registered in Hong Kong
Compliance System Internal control manual, AML/CFT policy, risk management policy
Expected approval time 5–8 months (no fixed time limit, depending on the quality of the application)

application process

The complete process from preparation to approval is estimated to take 5-8 months.

文件 (1)

Preparation and document writing

1-2 months

Phase 1
Direction right

Submit application

1-2 weeks

Phase 2

SFC Audit Interaction

2-3 months

Phase Three
Copy

Approval and follow-up

1-2 months

Phase Four

Official Fee (SFC)

SFC application fee

HK$4,740/category official

Other Fee Information: Professional service fees such as legal counsel fees and compliance counsel fees involved in the application process vary greatly depending on the scope of services, company size, and specific circumstances. It is recommended to contact Aiying directly to obtain a targeted quote.

Annual continuing expenses

Annual license fee (licensed corporation)

HK$4,740/category official

RO Annual Fee (per person per category)

HK$4,740 official

Other annual expenses: The costs of annual audits, compliance maintenance, etc. vary greatly depending on the company size and business complexity. It is recommended to consult a professional advisor for an assessment.

Application process broken down in detail

mission critical

  • Incorporate a Hong Kong company (or complete the Hong Kong registration of an overseas company).
  • Determine the business model and scope of license application
  • Recruit and confirm qualified Resource Owners (ROs).
  • Appoint a Money Laundering Reporting Officer (MLRO)
  • Establish internal control systems and AML/CFT framework
  • Prepare business plan and risk control documents
  • Hire a professional consultant (if needed).
  • Register a WINGS license issuing service account

materials needed

  • Hong Kong Company Registration Certificate
  • Company Articles of Association and Organizational Chart
  • RO's detailed resume and supporting documents
  • HKSI Professional Qualification Examination Results
  • Business plan (including business model and risk control structure)
  • AML/CFT policy documents
  • Internal Control Manual
risk assessment

This stage is the most time-consuming part of the entire application process. Recruiting and verifying RO qualifications often takes the longest, so it is recommended to start as early as possible.

mission critical

  • Submitting a licensed corporation application through the WINGS system
  • Simultaneously submit approval applications for all proposed ROs.
  • Pay the SFC application fee (HK$4,740 per type of regulated activity).
  • Obtain the application case number
  • Awaiting SFC to assign case officer

materials needed

  • WINGS System Complete Application Form
  • All supplementary documents and questionnaires
  • Application fee payment voucher
risk assessment

Application fees are non-refundable once paid, regardless of the application outcome. Please ensure all documents are complete before submission to avoid your application being rejected.

mission critical

  • Respond to inquiries from the SFC case officer (usually 1-3 rounds).
  • In cooperation with any interviews or on-site inspections that SFC may conduct.
  • Please supplement the information or revise the documents as required.
  • Maintain active communication with SFC
  • Handle any subsequent changes (if any).

materials needed

  • Written response to SFC inquiry
  • Supplementary supporting documents
  • Updated business plan (if required)
risk assessment

The SFC does not specify a fixed processing time. Review time is affected by factors such as the completeness of the application materials, the SFC's workload at the time, and the number of rounds of inquiries. Maintaining active cooperation with the SFC is key to expediting the approval process.

mission critical

  • Received SFC Approval in Principle (AIP) notification
  • All pre-license conditions have been met (capital injection, system readiness, etc.).
  • SFC will officially issue licenses after confirming that the conditions are met.
  • Verify license information in the SFC Public Register
  • Commence regulated activities and fulfill ongoing compliance obligations

materials needed

  • Capital injection documentation
  • System Readiness Confirmation File
  • Official license plate (registered)
risk assessment

After obtaining a license, you must comply with ongoing compliance obligations, including annual audits, regular reporting to the SFC, maintaining minimum capital requirements, and ongoing professional training.

Application materials list

CAD file name Required/Optional Explain
Company Documents Hong Kong Company Registration Certificate Required Business Registration Certificate + Company Incorporation Certificate
Company Documents Articles of Association Required The latest version
Company Documents Organizational Chart Required Including core functional managers
Personnel Documents RO's detailed resume Required Including work experience and qualification certificates
Personnel Documents HKSI Professional Qualification Report Card Required Relevant professional qualification examinations
Personnel Documents Personal suitable candidate questionnaire Required WINGS system entry
Business documents business plan Required Includes business model, target market, and risk control architecture.
Business documents Financial forecasts (3 years) Required Including capital adequacy analysis
Compliance Documents AML/CFT policy documents Required Anti-money laundering and counter-terrorism financing policies
Compliance Documents Internal Control Manual Required Includes operating guidelines and compliance procedures
Compliance Documents Risk management policy Required Includes risk identification, assessment, and control measures.
Others Office lease certificate Required Hong Kong physical office
Others Professional liability insurance Optional Some business models may require

Acquisition vs. Direct Application

A comprehensive comparison of the two paths will help you choose the optimal solution.

direct application

Building your own licensed entity from scratch

Advantage

✓ The cost is relatively low, estimated at HK$20-30+.
✓ Complete control over the company structure and business direction
✓ No historical issues or potential risks
✓ Compliance systems can be customized to meet individual needs.

Inferiority

× The approval process takes a long time (5-8 months).
× There is a risk that the application will be rejected.
× A completely new customer base and market reputation need to be established.
× More preparation and document drafting are needed.

Acquisition of existing licenses

Purchase of approved Type 4 license entities

Advantage

✓ Rapid market entry (change completed in 2-4 months)
✓ No risk of application rejection, high certainty
✓ It may involve existing customers and business relationships.
✓ Established compliance framework and operational experience

Inferiority

× High costs typically require a higher acquisition premium.
× Due diligence is required and may uncover hidden risks.
× SFC approval is required for equity change and RO replacement.
× Potential compliance issues arising from historical inheritance

Select suggestions

If you choose to apply directly, then:

  • Limited budget (under HK$30)
  • Ample time (5-8 months)
  • Desire to have complete control over the architecture
  • The team has qualified RO

If you choose to acquire, if:

  • Requires rapid market entry (3-6 months)
  • Sufficient funds available, able to afford a premium.
  • Emphasis on certainty and speed
  • The target company has a clean historical record.

Hybrid solution:

  • Acquire basic licenses first for rapid market entry
  • Apply for additional business functions later
  • Balancing speed and cost
  • Reduce overall risk
Contrast Dimensions Apply for a new license Acquisition of existing licenses
Time costs 5–8 months (including SFC approval, no fixed time limit) 2–4 months (mainly due diligence and SFC change approval)
Cost of capital Application fee HK$4,740 + advisory fee + capital contribution + operating costs Acquisition premium + due diligence costs + capital (premium varies depending on market conditions)
Compliance costs A complete compliance system needs to be established from scratch (which is costly). The existing system can be inherited, but a comprehensive review is required (as there are hidden risks).
Key risks The approval time is uncertain, and the application may be returned or rejected. Due to historical compliance risks, the SFC may not approve the changes.
Suitable for the scene Long-term planning, no time pressure, desire to design the architecture independently Quick market entry, financial advantage, and time sensitivity

Important Note: Whether you choose to apply for or acquire an existing license, it is recommended to consult with a professional advisor for a comprehensive evaluation before officially commencing the process. When acquiring an existing license, thorough due diligence must be conducted, including historical compliance records, SFC correspondence, and any outstanding issues.

Reference for licensed companies

The following showcases representative Type 4 license holders from different categories.

To check your latest licensing status, please refer to the SFC public register.

Disclaimer: The following company information is for reference only and is used to showcase different types of Type 4 license holders. Specific license types and business scopes are subject to change at any time. For the latest and most accurate information, please visit the SFC Public Register. Last updated: February 2026.

Goldman Sachs (Asia) Securities Limited

Goldman Sachs (Asia) Securities Limited

International Investment Bank

Including Type 4 licence
A top global investment bank providing comprehensive securities and advisory services.

Morgan Stanley Asia Limited

Morgan Stanley Asia Limited

International Investment Bank

Including Type 4 licence
A leading global investment bank, encompassing securities research and advisory services.

UBS Securities (Hong Kong) Limited

UBS Securities Hong Kong Limited

International Investment Bank

Including Type 4 licence
UBS Group Hong Kong Securities Business

BNP Paribas Securities (Asia) Limited

BNP Paribas Securities (Asia) Limited

International Investment Bank

Including Type 4 licence
Hong Kong Securities Advisory Services of a Leading European Investment Bank

Citigroup Global Markets Asia Limited

Citigroup Global Markets Asia Limited

International Investment Bank

Including Type 4 licence
Citigroup Hong Kong Securities and Advisory Services

Deutsche Bank (Hong Kong) Limited

Deutsche Bank AG, Hong Kong Branch

International Investment Bank

Including Type 4 licence
Germany's largest bank's Hong Kong securities advisory business

China International Capital Corporation (Hong Kong) Securities Limited

China International Capital Corporation Hong Kong Securities Limited

Chinese investment banks

Including Type 4 licence
CICC's Hong Kong subsidiary provides comprehensive securities advisory services.

CITIC Securities Brokerage (Hong Kong) Limited

CITIC Securities Brokerage (HK) Limited

Chinese securities firms

Including Type 4 licence
CITIC Securities' Hong Kong business covers securities trading and advisory services.

Haitong International Securities Co., Ltd.

Haitong International Securities Company Limited

Chinese securities firms

Including Type 4 licence
Haitong Securities' Hong Kong subsidiary, providing integrated financial services

Guotai Junan Securities (Hong Kong) Limited

Guotai Junan Securities (Hong Kong) Limited

Chinese securities firms

Including Type 4 licence
Guotai Junan Hong Kong Securities and Advisory Services

China Merchants Securities (Hong Kong) Limited

China Merchants Securities (HK) Co., Limited

Chinese securities firms

Including Type 4 licence
China Merchants Securities' Hong Kong subsidiary provides securities advisory services.

GF Securities (Hong Kong) Brokerage Limited

GF Securities (Hong Kong) Brokerage Limited

Chinese securities firms

Including Type 4 licence
GF Securities Hong Kong Securities and Asset Management Business

Phillip Securities (Hong Kong) Limited

Phillip Securities (HK) Ltd

Local comprehensive securities firms

Including Type 4 licence
A well-known local Hong Kong brokerage firm providing securities trading and advisory services.

Yiu Choi Securities & Finance Limited

Bright Smart Securities & Commodities Group Ltd

Local comprehensive securities firms

Including Type 4 licence
Hong Kong local retail securities firm, providing stock and investment advisory services.

Yuanta Securities (Hong Kong) Limited

Yuanta Securities (Hong Kong) Company Limited

Local comprehensive securities firms

Including Type 4 licence
Yuanta Securities (Hong Kong) subsidiary

KGI Securities Asia Limited

KGI Asia Limited

Local comprehensive securities firms

Including Type 4 licence
KGI Securities (Taiwan) Hong Kong subsidiary, providing integrated securities services

Futu Securities International (Hong Kong) Limited

Futu Securities International (Hong Kong) Limited

Internet brokerage

Including Type 4 licence
Tencent-affiliated online brokerage firms provide digital securities advisory services.

Tiger Brokers (Hong Kong) Limited

Tiger Brokers (HK) Global Limited

Internet brokerage

Including Type 4 licence
Internet brokerage firms provide global securities trading and advisory services.

Interactive Brokers (Hong Kong) Limited

Interactive Brokers Hong Kong Limited

Internet brokerage

Including Type 4 licence
Interactive Brokers Hong Kong subsidiary, professional investment advisor

Value Partners Fund Management (Hong Kong) Limited

Value Partners Hong Kong Limited

Independent asset management

Including Type 4 licence
A well-known independent asset management company in Hong Kong, providing securities advisory services.

Fitch Ratings Limited

Fitch Ratings Limited

Credit rating agencies

Including Type 4 licence
One of the world's three major rating agencies, providing securities analysis services.

Moody's Investors Service

Moody's Investors Service Limited

Credit rating agencies

Including Type 4 licence
A leading global rating agency providing securities research and analysis.

FAQs

Frequently Asked Questions about Applying for a Type 4 License Plate

The main difficulties lie in the qualification requirements for responsible personnel (ROs) and the establishment of a compliance system.

SFC requires at least two Retail Employees (ROs) with relevant experience and qualifications, with at least one required to be in Hong Kong at all times to oversee operations. For startups, finding qualified ROs is often the biggest challenge. Furthermore, establishing robust internal control systems, AML/CFT structures, and risk management policies also requires significant professional investment.

The entire process typically takes 5-8 months, depending on the level of preparation and the amount of work required for approval by the SFC at the time.

The preparation phase (company registration, staffing, and document preparation) takes approximately 2-4 months. After submission, the SFC approval time varies depending on the quality of the application and the workload at the time, typically taking 3-4 months. The SFC does not specify a fixed processing time in its Licensing Handbook; the actual time is affected by factors such as the completeness of the application materials and the number of SFC inquiry rounds.

The standard Type 4 license does not cover advice related to virtual assets (VAs), and an additional VA upgrade application is required.

Under the SFC's regulatory framework, providing advice on virtual assets falls under a different regulatory category. To conduct investment advisory services related to virtual assets, a VA upgrade is required based on a Type 4 license. The SFC's regulatory structure is constantly evolving; it is recommended to consult a professional advisor for the latest requirements.

Type 4 licenses are for providing securities investment advice, while Type 1 licenses are for executing securities trading transactions; the two have different business natures.

If the business is limited to providing investment advice (without executing transactions), only a Type 4 license is required. If securities trading is also involved, a Type 1 license is required. Note: If Type 4 activities are entirely subordinate to the securities trading business under a Type 1 license, a separate Type 4 license may not be necessary (with an exemption mechanism).

You can reapply, but you need to fully improve your application to address the reasons for the SFC's rejection before resubmitting.

SFC will provide reasons for rejecting an application. Applicants should address the deficiencies, such as strengthening their compliance structure, changing or supplementing their RO (Responsible Owner) qualifications, and then resubmit their application. A new application fee is required for resubmission. It is recommended to consult a professional advisor to assess the improvement plan before resubmitting.

Key risks include historical compliance issues, SFC's refusal to approve the changes, and excessive acquisition premium.

A thorough due diligence process must be conducted prior to the acquisition, including: reviewing SFC correspondence and any outstanding issues, assessing historical compliance records, verifying the qualifications of all ROs, and examining the financial condition. SFC must approve the substantial change of ownership and may require a replacement RO or additional guarantees.

Licensed corporations are required to fulfill several ongoing compliance obligations, including annual audits, periodic reporting, and capital maintenance requirements.

Key ongoing compliance obligations include: paying the annual license fee (HK$4,740 per type of regulated activity); engaging an approved auditor to conduct an annual audit; submitting financial reports to the SFC regularly; maintaining minimum capital requirements; ensuring that the RO continues to meet eligibility requirements; and arranging continuing professional training (CPT) for licensed representatives.

Mainland companies must first complete Hong Kong company registration and ensure that they meet the SFC's requirements for "fit and proper persons".

Mainland companies applying for a Hong Kong Type 4 license should note the following: Registration with the Hong Kong Companies Registry is required; the RO (Responsible Owner) must possess relevant qualifications recognized in Hong Kong or internationally; the SFC (Special Financial Controller) will assess the company's holding structure and ultimate beneficial owner; sufficient local management capabilities in Hong Kong must be demonstrated; and it is recommended to consult a professional advisor in advance to understand the specific requirements.

About Aiying

Aiying (License.aiying.cc) specializes in global traditional finance and Web3-related license application and acquisition consulting services. With teams primarily located in Hong Kong, the UAE, and Europe, and strong relationships with local regulators, Aiying has successfully secured applications and smooth operations for leading and mid-tier crypto and traditional institutions. Team members are qualified in Hong Kong, Europe (Ireland), the UK, the UAE, and other jurisdictions, with a global network ensuring 24/7 professional support. Headquartered in Asia, the team brings together experts in operations, marketing, law, regulatory compliance, and accounting, adhering to clients' business objectives to provide comprehensive and in-depth strategies and solutions.

Authoritative guidance

Authoritative guidance

Based on SFC official guidelines and Aiying's practical experience, we provide the most authoritative application guidance.

Useful Checklist

Useful Checklist

Detailed self-checklist and document preparation guide to ensure the completeness and accuracy of application materials

Success Stories

Success Stories

100+ successful case experience summary, avoid common pitfalls and improve success rate

global vision

global vision

Integrate international best practices to ensure the forward-looking and adaptable compliance system

Pre-inspection mechanism

Aiying's "pre-screening mechanism"

To maximize your success rate, Aiying conducts an internal mock review of your application materials before formal submission. Our expert team acts as a regulator, scrutinizing each document from the most rigorous perspective to identify logical loopholes, data inconsistencies, and compliance gaps in advance.

Through this mechanism, we can ensure that the materials submitted to the regulatory authorities are highly professional, complete and impeccable, thereby minimizing the number of regulatory inquiries and significantly shortening the approval time.And reduced the license rejection rate by 67%.