In Hong Kong, financial institutions and professionals wishing to engage in asset management must obtain the relevant licence under the Securities and Futures Ordinance (Cap. 571). The Type 9 licence, “Asset Management,” is specifically designed for managing investment portfolios on behalf of clients. Licensed persons may make investment decisions for clients across a wide range of assets, including equities, bonds, funds, and derivatives, using professional expertise to help clients achieve their financial goals.

The core of the Type 9 licence lies in “discretionary management,” meaning that licensees not only provide investment advice but also directly implement investment strategies. This differs from Type 4 “Advising on Securities” or Type 5 “Advising on Futures Contracts,” as Type 9 involves actual asset operations and ongoing management. Licensees must comply with strict regulatory requirements, including capital adequacy, risk management systems, compliance monitoring, and client asset protection.

Applicants for a Type 9 licence generally need relevant professional qualifications and experience, such as backgrounds in investment management, financial analysis, or fund operations. The Securities and Futures Commission (SFC) reviews applicants’ integrity records, professional competence, and corporate governance structures to ensure they can properly discharge asset management responsibilities.

Furthermore, licensees must adhere to ongoing obligations, including submitting compliance reports regularly, undergoing inspections, and ensuring continuous professional training for staff. These requirements are designed to protect investor interests and maintain market fairness and transparency.

In summary, the Type 9 licence is one of the most professional and responsibility-intensive licences in Hong Kong’s financial market. It signifies that licensees are legally authorised to provide comprehensive asset management services to clients. It is not only a crucial threshold for financial institutions to expand their business but also a safeguard of investor trust.