|
|
 |
|
|
|
Mutual recognition of professional qualification steams ahead Licensing Examination gives access to world financial stage
-- Third Hong Kong Licensing Examination for Securities and Futures Intermediaries to be held in Shenzhen
¡]3 July 2006¡^The smooth progress of CEPA phase three has hastened alignment of the financial markets in Mainland China and Hong Kong, and mutual recognition of securities and futures trading qualifications of professionals of the two places. Organized by the Hong Kong Securities Institute (¡§HKSI¡¨) in cooperation with the Securities Association of China and China Futures Association, and to be overseen by the Shenzhen Securities Association, the third ¡§Hong Kong Licensing Examination for Securities and Futures Intermediaries (¡§LE¡¨)¡¨ Paper 1 is scheduled to be held in Shenzhen on 28 October 2006 (Saturday). The examination is not only a means for mainland securities and futures professionals to better understand the international financial markets and raise their professional standards, but also gives them a chance to develop a career in the financial industry in Hong Kong and board the international financial stage.
In compliance with the Hong Kong Securities and Futures Commission¡¦s ("SFC") "Guidelines on Competence" for registration as Representatives and/or Responsible Officers, the various papers of the LE are deemed as "Local Regulatory Framework Examination Papers" and adequate for certification of "Recognised Industry Qualifications".
The LE (Paper 1) in Mainland China has been held twice, the first was given in Shenzhen in 2005 and taken by 270 candidates. The second was held in Shanghai this April attracting over 400 candidates. The growing number of candidates mirrored the wide acceptance and recognition of the examination within the industry.
HKSI has striven to provide training and opportunities to exchange experiences for Hong Kong and Mainland financial professionals. Mr. Gary Cheung, Chief Executive of the HKSI, said, "With phase III of CEPA kicking in, the demand for financial professionals in Mainland China is set to grow. Nevertheless, currently few mainland professionals are well versed with the working of the Hong Kong and international financial markets. The LE (Paper 1) gives mainland securities and futures professionals a means to understand the financial system and regulations of Hong Kong. Those who pass the examination will have a chance to obtain a license issued by the SFC, which will open the door for them to the international financial sector.¡¨
Mainland professionals (defined as PRC nationals possessing valid securities or futures practising qualifications in Mainland China) are recognised by the Securities and Futures Commission (SFC) as holding relevant industry qualifications to practice in Hong Kong. Mainland professionals who pass the HKSI "Licensing Examination for Securities and Futures Intermediaries" (Paper 1) 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 professional examinations. As for Mainland professionals with senior management qualifications, they are deemed as having equivalent qualifications of responsible officers in Hong Kong. Those possessing general practising qualifications on the Mainland will be deemed as having attained qualifications of representatives in Hong Kong. Application for the third LE (Paper 1) will open on 3 July 2006 (Monday) and will close on September 2006 (Saturday). The examination fee is HK$750. Eligible candidates can submit their application online, or in person or by post to the HKSI office. To assist potential candidates in preparing for the examination, the Shenzhen Securities Association will hold a "Hong Kong Securities and Futures Regulations" training course on 23 and 24, September 2006 (Saturday and Sunday).
Mr.Yan Wei-ming, Executive Vice Chairman and Secretary of the Shenzhen Securities Association, which will oversee the LE (Paper 1), said, ¡§When the LE (Paper 1) was held for the first time in Shenzhen in 2005, it already had widespread support from our securities and futures trading professionals. We believe the return of the examination will again create much attention and enthusiasm on the subject of mutual financial professional recognition. It is obvious that as the financial industry of the country develops, it will move towards hiring securities and futures professionals who have knowledge of the mainland market as well as the system of Hong Kong and the international financial sectors. We, at the Shenzhen Securities Association, will do our best in working with and developing hand-in-hand with HKSI and contribute to the advancement of the securities and futures industry in Mainland China and Hong Kong.¡¨
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 http://www.hksi.org/ for details.
About the licensing system and mutually recognised qualifications under CEPA
The Securities and Futures Ordinance ("SFO"), a single licensing system was introduced on April 1, 2003. Under the 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:
| Type |
Regulated Activities |
| RA 1 |
Dealing in securities |
| RA 2 |
Dealings in futures contracts |
| RA 3 |
Leverage foreign exchange trading |
| RA 4 |
Advising on securities |
| RA 5 |
Advising on futures contracts |
| RA 6 |
Advising on corporate finance |
| RA 7 |
Providing automated trading services |
| RA 8 |
Securities margin financing |
| RA 9 |
Asset management |
Pursuant to the following mapping table, Mainland professionals applying for Hong Kong licenses will be deemed as having possessed the necessary industry qualifications in Hong Kong.
| Practising Qualifications in China |
Regulated Activities Specified in Hong Kong Licenses |
Securities Practising Qualification
(having passed the Special Paper on Securities Dealing) |
Dealing in Securities
(RA1) |
Securities Practising Qualification
(having passed the Special Paper on Securities Investment Analysis) |
Advising on Securities
(RA4) |
Securities Practising Qualification
(having passed the Special Paper on Securities Issuance and Underwriting) |
Advising on Corporate Finance
(RA6) |
Futures Practising Qualification
(having passed the Special Paper on Futures) |
Dealing in Futures Contracts
(RA2) |
Futures Practising Qualification
(having passed the Special Paper on Futures) |
Advising on Futures Contracts
(RA5) |
Securities Practising Qualification
(having passed the Special Paper on Securities Investment Funds) |
Asset Management
(RA9) |
(Extract from the website of SFC at http://www.sfc.hk)
Mainland professionals applying for a Hong Kong license must comply with the requirements set out under the "Fit and Proper Guidelines" and "Guidelines on Competence" (downloadable from the website of SFC). Notwithstanding the above table, Mainland professionals who meet the "Recognised Industry Qualifications" of SFC, are still required to pass the relevant regulatory examinations in Hong Kong to satisfy "Local Regulatory Framework Papers" requirements.
|
|
|
|
