Mutual Recognition of Professional Qualification
Marks New Page in Mainland - Hong Kong Coalition

"Licensing Examination for Securities and Futures Intermediaries"
Launched in Shenzhen

Following the "PRC Securities Regulations Examination" for Hong Kong securities and futures professionals held in Shenzhen in March this year, the "Licensing Examination for Securities and Futures Intermediaries" (Paper 1) will be held in Shenzhen on April 23, 2005 (Saturday) on a reciprocal basis for Mainland professionals. The arrangement marks a new milestone in the exchange of talents between the Mainland and Hong Kong under the CEPA framework introduced in January 2004. The "Licensing Examination for Securities and Futures Intermediaries"(Paper 1) in Shenzhen has been organised by the Hong Kong Securities Institute ("HKSI"), assisted by the Securities Association of China, the China Futures Association and supported by the Growth Enterprises Training Centre, Shenzhen Stock Exchange. The examination will be administered locally by the Adult Education College of Shenzhen University.

Organised by the HKSI, the "Licensing Examination for Securities and Futures Intermediaries" is designed to comply with the "Guidelines on Competence" for registration as Representatives and/or Responsible Officers with the Securities and Futures Commission ("SFC") in Hong Kong. The SFC deems the various papers of the Licensing Examination to be adequate for certification as "Recognised Industry Qualifications" and as "Local Regulatory Framework Papers".

Mr Gary Cheung, Chief Executive of the HKSI, said, "The Licensing Examination for Securities and Futures Intermediaries paves the way for Mainland professionals to join the securities and futures industry in Hong Kong. This is the first time that Paper 1 will be held in Shenzhen to allow Mainland professionals to attain professional qualifications recognised in Hong Kong. The move complements the implementation of CEPA. Through taking the relevant training courses, Mainland practitioners can gain a better understanding of the regulatory framework and laws governing the Hong Kong securities and futures markets, hence boosting their industry expertise. We are looking forward to seeing the active participation of Mainland professionals in the examination. It is our hope that the examination will encourage talents in the Mainland and Hong Kong to learn from each other and exchange expertise, helping to lay a solid foundation for assimilation into the global financial markets."

Mainland professionals (residents in China who possess securities and/or futures practicing qualifications in China) who pass the HKSI "Licensing Examination for Securities and Futures Intermediaries (Paper1)" and satisfy other SFC licensing requirements will be eligible to apply for relevant licenses in Hong Kong. They are not required to take any other practical industry examination papers. The enrollment period for the examination is between December 28, 2004 (Tuesday) and March 7, 2005 (Monday).

The mutual recognition of professional qualifications between the securities and futures industries in the Mainland and Hong Kong is favourable to the communication and exchange of knowledge and views of practitioners. The collaboration also facilitates the cooperation between securities regulatory bodies, and the linkage and development of the securities and futures markets between the Mainland and Hong Kong.

Miss Lucinda Wong, Director of Licensing, SFC, said, "CEPA has brought the financial services industry of the Mainland and Hong Kong much closer. Such cooperation effectively promotes the flow of expertise across the border, and cultivates a sound environment for securities and futures practitioners to excel their professionalism in enhancing the globalisation and modernization of the securities markets."



About Hong Kong Securities Institute

The Hong Kong Securities Institute provides comprehensive and professional training courses, organises events and administers internationally recognised examinations for individuals who wish to work in the financial services sector. Its aim is to raise the standards of securities and finance practitioners. Please refer to the website www.hksi.org for details.


About the licensing system and mutually recognised qualifications under CEPA

Under the new Securities and Futures Ordinance (SFO), a new single licensing system was introduced on April 1, 2003.  Under the new system, a license holder may engage in different types of regulated activities falling into nine categories.  Each license issued will clearly define the type of regulated activities the holder may engage in. The nine regulated activities are as follows:

 
Pursuant to the following mapping table, Mainland professionals applying for Hong Kong licences or Hong Kong securities and futures professionals applying for qualifications to practice in the Mainland will be deemed as having possessed the necessary industry qualifications in the corresponding jurisdiction (extracted from the website of the SFC www.sfc.hk).

Mainland professionals applying for a Hong Kong licence must comply with the requirements set out under the "Fit and Proper Guidelines" and "Guidelines on Competence" (downloadable from the website of the SFC). Notwithstanding the above table, Mainland professionals who meet the "Recognised Industry Qualifications" of the SFC, are still required to pass the relevant regulatory examinations in Hong Kong to satisfy "Local Regulatory Framework Papers" requirements.

Media enquiry:

Mr Gary Cheung, Chief Executive on 3120 6288 or
Ms Daisy Lo, Manager - Corporate Communications on 3120 6159