Hong Kong’s SFC registers drop in license applications in Q2 2019

Maria Nikolova

During the quarter to end-June, the regulator received 1,756 licence applications, down 10.5% from the previous quarter and 13.5% year-on-year.

Hong Kong’s Securities and Futures Commission (SFC) has earlier today posted report for the April-June quarter, with the numbers showing a drop in license applications received.

During the quarter, the regulator received 1,756 licence applications, down 10.5% from the previous and 13.5% year-on-year. The number of corporate applications dropped 14.3% from the last quarter to 66, down12% year-on-year.

As at June 30, 2019, the number of licensed corporations reached a record high of 3,017, up 51% from the same period in 2014 and 8.7% from last year. At the same time, the number of licensees and registrants totalled 47,239, up 4.7% year-on-year.

One of the highlights for the quarter was a June circular concerning FX margin trading in the Mailand. The circular reminded licensed corporations that it is illegal under Mainland law and regulations for any unapproved institution to conduct foreign exchange margin trading on the Mainland or for any client on the Mainland to entrust an unapproved institution to do so. Licensed corporations which provide or market foreign exchange margin trading to Mainland investors or assist other persons in such activities are advised to review the legality of their activities immediately.

In May this year, Hong Kong-focused retail Forex broker KVB Kunlun Financial Group Ltd (HKG:6877) made an announcement concerning its PRC domestic clients. A detailed survey of the Group’s Existing Ethnic Chinese Clients will be conducted. This survey aims to identify anyone who is, or who may possible be, classified as a PRC domestic client. Any person identified as an actual or potential PRC domestic client will then be disengaged as soon as possible.

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