Sina Hong Kong Stock Exchange News on January 8, the Hong Kong Securities and Futures Commission (SFC) issued guidelines yesterday (January 7) on the licensing obligations of private equity firms and family offices doing business in Hong Kong.

In a circular to private equity firms seeking licences, the SFC provided more data on the licensing requirements applicable to general partners, investment committee members and fund promotion activities of private equity firms. The circular also clarifies how the SFC assesses the investment discretion of private equity firms, investment in private company securities and industry experience requirements applicable to its responsible staff (Note 1).

In another circular, the SFC explores how our licensing system applies to family offices which intend to carry out asset management or other services in Hong Kong, and explains the potential impact of the licensing system on single-family and multi-family offices. Depending on the mode of operation of the family office, the licensing exemption or exclusion (Note 2) may apply.

Mr Mr Ashley Alder, Chief Executive Officer of the SFC, said: "Private equity firms and family offices are the two main cornerstones of any leading asset and wealth management centre. We have issued two circular letters to clarify how our obligations to apply for licences apply to the activities of these companies in Hong Kong. "

The circular was issued in response to enquiries from industry participants and their professional advisers. The SFC encourages interested parties to contact us to discuss their business plans or to seek further clarification (Note 3).