HK SFC Receives 1,470 Licence Applications in Q4 2022

The Hong Kong Securities and Futures Commission (SFC) today published its latest Quarterly Report which summarises key developments from October to December 2022 amidst increasing business activity.

Compared to the previous three months, a greater number and wider variety of investment products were authorised or registered by the SFC during the quarter. The SFC authorised 58 unit trusts and mutual funds, including 33 Hong Kong-domiciled funds, as well as one investment-linked assurance scheme, one mandatory provident fund pooled investment fund and 54 unlisted structured investment products for public offering in Hong Kong. Twelve new open-ended fund companies were also registered during the quarter.

As at 31 December, the assets under management of Hong Kong-domiciled funds increased 11% from three months earlier, to US$165.2 billion. Net fund inflows of about US$3.6 billion were recorded during the quarter and the number of firms licensed for asset management grew to 2,069.

New requirements in the Fund Manager Code of Conduct took effect in the quarter, requiring all fund managers to consider climate-related risks in their governance, investment and risk management processes and make related disclosures. The SFC also authorised the first two virtual asset futures exchange-traded funds in Hong Kong, another policy priority.

Besides, the SFC received 1,470 licence applications, comprising 1,427 individuals and 43 corporations, and approved 59 corporate applications, of which 46% were Type 9 (asset management) and 39% were Type 4 (advising on securities).