Tag Archives: Hong Kong SFC (Securities and Futures Commission)

Content related to the regulatory policies, licenses and compliance practices of the Hong Kong Securities and Futures Commission (SFC).

The Hong Kong Securities and Futures Commission (SFC) has added a fraudulent website associated with DFX Labs to its list of suspicious virtual asset trading platforms.
The Hong Kong Securities and Futures Commission (SFC) has added a fraudulent website associated with DFX Labs to its list of suspicious virtual asset trading platforms.

On September 28, 2026, the Hong Kong Securities and Futures Commission (SFC) added four websites, including www.dfx.cn, to its list of "suspicious virtual asset trading platforms." These websites were proactively reported as fraudulent by the licensed platform, DFX Labs Company Limited. This article outlines the brand misuse patterns, key points for investor verification, and the legal basis for virtual asset regulation in Hong Kong.

29
June
Hong Kong's SFC and AFRC signed a new memorandum of understanding to extend financial reporting regulation to licensed virtual asset service providers.
Hong Kong's SFC and AFRC signed a new memorandum of understanding to extend financial reporting regulation to licensed virtual asset service providers.

On September 28, 2026, the Hong Kong Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) signed a new Memorandum of Understanding (MOU) to extend cooperation in financial reporting, auditing, and compliance oversight to SFC-licensed virtual asset servicers, licensed corporations, accredited funds, and registered OFCs. The new framework establishes an information-sharing and coordinated inspection mechanism, replacing the 2021 MOU and aligning with the direction of Hong Kong's expanded digital asset regulation.

28
June
Changpeng Zhao discusses Web3 and RWA in Hong Kong: Beyond industry perspectives, tokenized securities are still subject to SFC rules.
Changpeng Zhao discusses Web3 and RWA in Hong Kong: Beyond industry perspectives, tokenized securities are still subject to SFC rules.

Binance founder Changpeng Zhao stated at a Hong Kong event in August 2026 that Hong Kong and Web3 are a "powerful combination," and expressed optimism about the development of RWA and DEX. However, his remarks represent industry opinions, which do not equate to regulatory approval. Tokenized securities, VATP, and decentralized arrangements are still subject to the current SFC circulars and licensing rules, and actual business operations must be assessed on a case-by-case basis, considering product structure, underlying assets, and customers.

11
June
Hong Kong-based New Flame Group announced plans to launch the Alpha RWA quantitative strategy; product details are yet to be disclosed.
Hong Kong-based New Flame Group announced plans to launch the Alpha RWA quantitative strategy; product details are yet to be disclosed.

In its announcement on August 27, 2026, Xinhuo Group stated its intention to expand its RWA integrated operation business and planned to launch the Alpha RWA crypto asset quantitative strategy. The announcement disclosed the business plan but did not specify the subscription period, full product terms, or current sales status. Market participants still need to verify the official offering documents, applicable investor restrictions, and relevant regulatory registrations, and should not equate the company's plan with regulatory confirmation or product launch.

30
June
When a Type 4 advisory team provides a model portfolio to a fund manager, how should the boundaries of the Hong Kong license be explained?
When a Type 4 advisory team provides a model portfolio to a fund manager, how should the boundaries of the Hong Kong license be explained?

When a Type 4 advisory team provides a model portfolio to a fund manager, the key is not whether the document is called "research" or "model," but whether the content constitutes investment advice for securities, whether the fund manager will make trading decisions based on it, and who is responsible for portfolio construction, suitability, conflicts of interest, and record keeping.

27
June
What are the differences between Hong Kong SFC Type 1, Type 4, and Type 9 licenses?
What are the differences between Hong Kong SFC Type 1, Type 4, and Type 9 licenses?

The differences between Hong Kong SFC Type 1, Type 4, and Type 9 licenses lie primarily in their actual business operations: Type 1 deals with securities transactions, Type 4 provides advice on securities, and Type 9 involves asset management and investment discretion. The same group may be involved in all three types of activities simultaneously, but one license cannot replace the other two.

25
June
SFC Hong Kong revokes Chan Chi-kin's license and bans him from the industry for 10 years: The responsible personnel's misrepresentation of working capital constitutes misconduct.
SFC Hong Kong revokes Chan Chi-kin's license and bans him from the industry for 10 years: The responsible personnel's misrepresentation of working capital constitutes misconduct.

The Hong Kong Securities and Futures Commission (SFC) has revoked Ernest Chan Tsz Kin's license and approval to serve as a Responsible Officer (RO), and has banned him from working until August 24, 2026.

24
June
When managing offshore funds (Type 9), how should Hong Kong investment managers, advisors, and distributors divide their responsibilities?
When managing offshore funds (Type 9), how should Hong Kong investment managers, advisors, and distributors divide their responsibilities?

An SFC license must be determined based on the specific regulated activity. Types 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 13 correspond to different business operations, personnel responsibilities, customer disclosure, and record keeping requirements. Therefore, it is not appropriate to use Type 1/4/9 to encompass all SFC licenses.

24
June
When Hong Kong SFC Type 1 brokers plan to add margin financing, how should client agreements, risk disclosures, and internal limits be linked?
When Hong Kong SFC Type 1 brokers plan to add margin financing, how should client agreements, risk disclosures, and internal limits be linked?

When a brokerage firm intends to provide securities margin financing to its clients, it cannot simply add a financing clause to the client agreement or have its business team set a uniform loan-to-collar ratio.

24
June
When Hong Kong SFC Type 1 brokers plan to add margin financing, how should client agreements, risk disclosures, and internal limits be linked?
When Hong Kong SFC Type 1 brokers plan to add margin financing, how should client agreements, risk disclosures, and internal limits be linked?

Adding new margin financing cannot be done simply by changing the client agreement. At least three sets of controls must be integrated simultaneously before going live: the client agreement and risk disclosure statement outlining the client's responsibilities; credit, collateral, and concentration limits determining the company's willingness to assume risk; and margin call and exception approval processes determining who must act in the event of risk. If any of these components are not in place, it is not suitable to activate the service for customers.

20
June
When Hong Kong SFC Type 1 brokers plan to add margin financing, how should client agreements, risk disclosures, and internal limits be linked?
When Hong Kong SFC Type 1 brokers plan to add margin financing, how should client agreements, risk disclosures, and internal limits be linked?

Adding new margin financing cannot be done simply by changing the client agreement. At least three sets of controls must be integrated simultaneously before going live: the client agreement and risk disclosure statement outlining the client's responsibilities; credit, collateral, and concentration limits determining the company's willingness to assume risk; and margin call and exception approval processes determining who must act in the event of risk. If any of these components are not in place, it is not suitable to activate the service for customers.

19
June
How do Hong Kong SFC Type 6 corporate finance advisors establish conflict of interest and insider information segregation records during the project engagement phase?
How do Hong Kong SFC Type 6 corporate finance advisors establish conflict of interest and insider information segregation records during the project engagement phase?

When undertaking mergers, acquisitions, financing, or listing-related projects, Hong Kong SFC Type 6 corporate finance advisors cannot simply look at the project name. They must first verify the client's identity, scope of authorization, conflicts of interest, confidentiality and insider information control, sources of information, project document approvals, and communication records; when sponsorship or higher responsibilities are involved, the team's qualifications and supervisory responsibilities must also be assessed separately.

18
June
Before the launch of Hong Kong SFC Type 8 securities margin financing, how should the collateral discount rate, foreclosure and forced liquidation notices be documented?
Before the launch of Hong Kong SFC Type 8 securities margin financing, how should the collateral discount rate, foreclosure and forced liquidation notices be documented?

Before launching Hong Kong SFC Type 8 securities margin financing business, a single financing agreement is insufficient. The frontline should document a verifiable process, including collateral eligibility, valuation and discount rates, financing amount, margin ratio, margin call recovery, client notification, forced liquidation, exception approval, and post-event reconciliation. This process should be able to be traced back to each transaction by client, account, securities, date, and approver.

17
June
In Hong Kong SFC Type 4 investment advisory services, how is the boundary between research reports and investment advice distinguished?
In Hong Kong SFC Type 4 investment advisory services, how is the boundary between research reports and investment advice distinguished?

An SFC license must be determined based on the specific regulated activity. Types 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 13 correspond to different business operations, personnel responsibilities, customer disclosure, and record keeping requirements. Therefore, it is not appropriate to use Type 1/4/9 to encompass all SFC licenses.

15
June
When managing offshore funds (Type 9), how should Hong Kong investment managers, advisors, and distributors divide their responsibilities?
When managing offshore funds (Type 9), how should Hong Kong investment managers, advisors, and distributors divide their responsibilities?

An SFC license must be determined based on the specific regulated activity. Types 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 13 correspond to different business operations, personnel responsibilities, customer disclosure, and record keeping requirements. Therefore, it is not appropriate to use Type 1/4/9 to encompass all SFC licenses.

15
June
How should the time, cost, and certainty be weighed when acquiring a Hong Kong license compared to applying for a new one?
How should the time, cost, and certainty be weighed when acquiring a Hong Kong license compared to applying for a new one?

When acquiring a Hong Kong license, time, cost, and certainty should be weighed together in the same budget, rather than simply comparing prices or offers. The most easily underestimated aspects are not the license name itself, but rather the budget modules for advisory and due diligence, the Hong Kong entity and place of business, RO and compliance personnel, AML/CFT and systems, bank account opening, post-closing rectification, and ongoing compliance.

15
June
When a Hong Kong SFC-licensed corporation adds a new customer service channel, how should customer communication records be kept?
When a Hong Kong SFC-licensed corporation adds a new customer service channel, how should customer communication records be kept?

When a Hong Kong SFC-licensed corporation adds a new customer service channel, the customer communication records must first be documented in three layers: the first layer is channel authorization, which clarifies which employees can communicate with customers via telephone, WhatsApp, WeChat, email, or CRM; the second layer is content routing, which distinguishes between general service notifications, customer inquiries, investment advice, transaction instructions, complaints, and abnormal escalation.

15
June
When Hong Kong Type 1 brokers use third-party trading systems, how are order records and access control traceable?
When Hong Kong Type 1 brokers use third-party trading systems, how are order records and access control traceable?

When Hong Kong Type 1 brokers use third-party trading systems, order records and access controls must be kept on file simultaneously: client instructions, order placement, modification, cancellation, execution, allocation, exception handling, permission activation/modification/revocation, system logs, and audit trails must all be retrievable and reviewable by the brokers; the third-party system can perform functions, but RO, MIC, trading, operations, compliance, and IT oversight responsibilities cannot be outsourced.

14
June
When virtual asset funds enter Hong Kong, why can't we only look at SFC Type 9?
When virtual asset funds enter Hong Kong, why can't we only look at SFC Type 9?

SFC Type 1, Type 4, and Type 9 licenses correspond to securities trading, securities advisory, and asset management, respectively. They cannot be used interchangeably simply because they all belong to the SFC license category. When entering Hong Kong for asset management business, Type 9 is usually the focus, but whether Type 1 or Type 4 is also needed depends on the specific actions taken in sales, trade execution, investment advice, and portfolio management.

14
June
How should Hong Kong SFC Type 10 credit rating services manage independence and conflicts of interest before issuing ratings?
How should Hong Kong SFC Type 10 credit rating services manage independence and conflicts of interest before issuing ratings?

Before issuing ratings, Hong Kong SFC Type 10 credit rating services must address issues such as independence, conflicts of interest, rating methodology, data sources, analyst responsibilities, approval records, and correction mechanisms. The focus is not on writing the rating opinion, but on demonstrating that the rating process will not be influenced by commercial relationships or the issuer.

14
June

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