PrepLicense: HK SFC · Study notes · Paper 6
SFC LE Paper 6: Regulation of Asset Management
Paper 6 covers the regulation of asset management: licensing, fund manager conduct, internal controls and AML obligations.
1. Framework of laws and regulations
Type 9 regulated activity sits under the SFO, with specialist rules such as the Fund Manager Code of Conduct applying on top.
2. Regulators
The SFC is the competent authority, but the MPFA and Insurance Authority also have remits where MPF or insurance-linked products are involved.
3. Licensing and registration requirements
Asset management corporations must meet financial resources rules and have adequate responsible officer coverage; individuals must satisfy fitness and properness and competence requirements.
4. Fund Manager Code of Conduct
Covers the scope of the investment mandate, risk management, valuation and pricing, liquidity management, securities lending and fair allocation of trades.
5. Management, supervision and internal control guidelines
Senior management is accountable for internal controls, with auditable arrangements for segregation of duties, independent reconciliation and compliance monitoring.
6. Safeguarding client assets
Client money and securities must be segregated, governed by the Client Money Rules and Client Securities Rules.
7. Personal data
Collection, use and cross-border transfer of investor data must comply with the six data protection principles of the PDPO.
8. Discipline and AML
Breaches of the code can lead to revocation, suspension or public reprimand, alongside customer due diligence and reporting duties under the AMLO.
Sources and how to use these notes
These notes are organised around the syllabus areas published by HKSI Institute and are conceptual summaries — use them to build a framework and to revise quickly before the exam. For specific provisions, numeric thresholds and question weightings, rely on the latest official HKSI study material and the SFC source texts.
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