Overview

Starting from 2 October 2024, depositaries of SFC-authorised collective investment schemes (CISs), unless exempted, will be required to be licensed or registered with the Securities and Futures Commission (SFC) for Type 13 regulated activity (RA 13).

This training programme is developed in response to the grandfathering arrangement for individual practitioners who are engaged by an existing depositary to provide depositary services and exempted from taking the local regulatory framework paper (LRP) for RA 13.

There are three parts in this training programme:
Part 1: Overview of the Legal and Regulatory Framework for Securities and Futures Industry
Part 2: RA 13 Specific Regulations
Part 3: SFC-authorised Collective Investment Schemes and the relevant Product Codes

Please read the User Guide* before enrolling in the RA13 Grandfathering Training Programme, especially if you are new to our system.

*For the individual member and staff of corporate member of Hong Kong Trustees’ Association (HKTA), please read p.4 of the User Guide to enjoy the member price. 

Objective

By the end of this programme, you will:
• have an overview of the legal and regulatory framework of the Hong Kong Securities and Futures industry
• know the scope of RA 13, roles and responsibilities and the relevant legislations
• understand the legal status of the SFC Product Handbook and the Codes relevant to the authorisation of CIS

Content

Part 1: Overview of the Legal and Regulatory Framework for Securities and Futures Industry (2 hours)
• Overview of HK Regulators
• SFC Code of Conducts and Internal Control Guidelines
• AML Guidelines
• Securities and Futures Ordinance
  o Licensing
  o Financial Resources Rules and Client Assets Rules
  o Market Misconduct

Part 2: RA 13 Specific Regulations (1.5 hours)
• Scope of RA 13
• Who needs to be licensed / registered for RA 13?
• Criteria for RA 13 Depositaries
• Criteria for RA 13 Licensed Representatives or Relevant Individuals
• Specific Requirements and Ongoing Obligations on:
  o Client Securities Rules
  o Client Money Rules
  o Keeping of Records Rules
  o Schedule 11 of the SFC Code of Conduct

Part 3: SFC-authorised Collective Investment Schemes and the relevant Product Codes (1.5 hours)
• Fiduciary Obligations
• Recap on Unit Trusts (UT) and Open-ended Fund Companies (OFC)
• Definition of CIS and the SFC Authorisation
• Legal Status of the SFC Product Handbook and the Codes
• Highlights of UT Code, OFC Code, REIT Code and PRF Code

Recommended reading materials are also provided upon completion of each part of the course.

Who should attend

1) Existing individual practitioners who would like to take the LRP exemption under the grandfathering arrangement for RA 13.
2) LE Paper 18 examination candidates
3) Those who have no or limited knowledge but would like to be involved in RA 13 activities
4) Anyone who is interested in knowing the topics