SFC Enhances Facilitative Measures for Visiting Professionals
This update aims to provide greater operational flexibility for Itinerant Professionals (ITPs) while maintaining robust regulatory oversight under Hong Kong’s Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
SFC Updates Rules for Firms Engaging Overseas Specialists
The recent enhancements by the SFC allow licensed corporations (LCs) and licensed VA service providers (LPs) in Hong Kong to leverage overseas specialists from within their group structures for short-term, high-impact roles. By extending the permissible period for these engagements, supports increased agility while maintaining regulatory compliance.
Hong Kong firms should consider reviewing existing arrangements to ensure compliance and capitalize on this flexibility, as non-adherence may trigger regulatory scrutiny or enforcement actions, while proactive adoption can streamline operations and foster international collaboration.
Key Enhancements for Itinerant Professionals
The core change is the extension of the maximum period for ITPs to conduct activities in Hong Kong from 30 days to 45 days per calendar year.
ITPs are visiting professionals from overseas group companies of an LC or licensed LP. These professionals play a critical role in supporting cross-border financial operations and ensuring adherence to Hong Kong’s regulatory framework. They may apply for a representative license that allows them to:
- Visit Hong Kong on business for up to 45 days per calendar year
- Conduct RA under the SFO on behalf of the LC
- Provide VA services under the AMLO on behalf of the LP.
- Carry out supporting activities including client meetings, advisory sessions, other relevant RA or operational support depending on their licensed activity(ies), to facilitate smooth business operations and regulatory compliance.
Eligibility and Requirements for Itinerant Professionals
To qualify under the ITP framework, the following key requirements remained unchanged:
- Interactions are limited to Professional Investors only and must be chaperoned
- ITPs must be under the direct supervision of a Responsible Officer supervision – see Section 4.4.3.2(c) of the Guidelines on Competence
- The LC or LP must provide a formal undertaking for the ITP.
- Appropriate training must be provided
- The existing application process continues to apply.
By meeting these criteria, visiting professionals can provide services in Hong Kong while ensuring full compliance.
Considerations for Firms
Firms leveraging this framework should ensure:
- Internal policies and compliance procedures are updated to reflect the new 45-day limit
- Adequate tracking and documentation is in place for each ITP’s visits and activities
- Training and oversight requirements are clearly defined and consistently implemented.
These enhancements underscore the SFC’s commitment to supporting global business needs while upholding Hong Kong’s regulatory integrity. Firms in Hong Kong are encouraged to act now to fully benefit from the extended framework and avoid potential regulatory missteps.
How Waystone Can Help
Waystone can support the ITPs application process from start to finish if your business requires visiting professionals from overseas group companies of a LC or LP.
We offer a full suite of Corporate Compliance Solutions tailored to the needs of businesses expanding into or operating within Hong Kong. Our team is committed to helping you strengthen your compliance framework, so you can focus on growing your business with confidence.
To learn more about how Waystone can support your corporate compliance needs, please reach out to your usual Waystone representative or our APAC Compliance Solutions team via below.