Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 117

Grant of temporary licences to corporations for carrying on regulated activities

(1) The Commission may, upon application by a corporation in the
prescribed manner and payment of the prescribed fee, grant to the applicant a
licence to carry on, for a period not exceeding 3 months, one or more than one
regulated activity (other than Type 3, Type 7, Type 8 and Type 9 regulated
activities) as the Commission may specify in the licence.

(2) The Commission shall refuse to grant a licence to carry on a regulated
activity under subsection (1) unless the applicant satisfies the Commission
that-

   (a)  it carries on a business principally outside Hong Kong in an activity
        which, if carried on in Hong Kong, would constitute the regulated
        activity;

   (b)  it seeks to be licensed for the regulated activity solely for carrying
        on in Hong Kong such business in the activity;

   (c)  it carries on such business in the activity in the place referred to
        in paragraph (a) under an authorization (however described) by an
        authority or regulatory organization in that place which-

        (i)    in the Commission's opinion, performs a function similar to the
               functions of the Commission under this Part;

        (ii)   confirms to the satisfaction of the Commission that the
               applicant has been so authorized; and

        (iii)  the Commission is satisfied is empowered under the law of that
               place to investigate, and, where applicable, to take
               disciplinary action for, the conduct of the applicant in Hong
               Kong;

   (d)  the granting of the licence would not result in its being granted
        licences under subsection (1) for respective licence periods that in
        total exceed 6 months in any period of 24 months;

   (e)  it is a fit and proper person to be so licensed for the regulated
        activity;

   (f)  it has nominated at least one individual for approval by the
        Commission for the purposes of subsection (5)(a); and

   (g)  an application has been lodged under section 130(1) for approval of
        premises to be used by the applicant for keeping records or documents
        required under this Ordinance.

(3) A licence granted under subsection (1) shall be subject to such reasonable
conditions as the Commission may impose, and the Commission may at any time,
by notice in writing served on the licensed corporation concerned, amend or
revoke any such condition or impose new conditions as may be reasonable in the
circumstances.

(4) Where the Commission by notice in writing amends or revokes any condition
or imposes any new condition under subsection (3), the amendment, revocation
or imposition takes effect at the time of the service of the notice or at the
time specified in the notice, whichever is the later.

(5) Without limiting the generality of subsection (3), it shall be a condition
of a licence granted under subsection (1) for carrying on a regulated
activity-

   (a)  that, in relation to the regulated activity, there is at least one
        individual who is-

        (i)    nominated by the licensed corporation and approved by the
               Commission for the purposes of this paragraph; and

        (ii)   available at all times to supervise the business of the
               regulated activity for which the corporation is licensed; and

   (b)  that the licensed corporation shall not hold any client assets in
        carrying on the regulated activity.

(6) A licensed corporation shall not, when carrying on a regulated activity
for which it is licensed under subsection (1), use a name other than the name
specified in the licence.