Hong Kong asset management company establishment regulatory requirements

Relevant regulations of the Mainland China Securities Regulatory Commission：Required institutional forms for establishing an institution in Hong Kong：Hong Kong institutions can adopt branches、office、Subsidiaries and other forms permitted by the China Securities Regulatory Commission1。Basic conditions：应当具备《证券投资基金管理公司管理办法》（证监会令第22号）中关于基金管理公司设立分支机构的基本条件2。 业务内容：基金品种开发、基金销售及公司授权的其他业务活动3。

公司管理：

1. 公司治理健全，内部监控完善，经营稳定，有较强的持续经营能力；
2. 公司最近1年内没有因违法违规行为受到行政处罚或者刑事处罚；
3. 公司没有因违法违规行为正在被监管机构调查，或者正处于整改期间；
4. 拟设立的分支机构有符合规定的名称、office space、业务人员、和与业务有关的其他设施；
5. 拟设立的分支机构有明确的职责和完善的管理制度；
6. 中国证监会规定的其他条件4。

申报及设立流程：

1. 自董事会或者股东会做出决议之日起15申请材料5。
2. 定，受理基金管理公司设立分支机构的申请，并进行审查，做出决定。 中国证监会可以对拟设立的分支机构进行现场检查。6
3. 基金管理公司设立分支机构，应当自收到批准文件之日起30政管理机关办理登记注册手续7。

1 证监会公告[2008]12号－关于证券投资基金管理公司在香港设立机构的规定—-第一条 证监会公告[2008]12号－关于证券投资基金管理公司在香港设立机构的规定—-第三条（四） 基金管理公司应当按照法律、行政法规和中国证监会的规定将设立、撤销分支机构的事项予以公告8。

报送材料：（原件1份，复印件1份）：

1. 对公司本身经营的影响；
2. 董事会或股东会决议；
3. 商业计划书，至少包括对到香港设立机构的必要性、境和法律环境的分析；
4. 对香港机构的管理安排，至少包括拟任负责人及主要业务人员的安排、港机构实施管理的制度和措施、风险隔离措施等；
5. 律师事务所出具的法律意见书；
6. 中国证监会

Require

的其他材料9。

报送及批复流程：基金管理公司到香港设立机构，应当经董事会或者股东会做出决议后，按照本规定向中国证监会报送申请材料10。申请期间申请材料涉及的事项发生重大变化的，申请人应当自变化发生之日起5日内向中国证监会提交更新材料11。

中国证监会对基金管理公司到香港设立机构的申请进行审查，自受理之日起60日内作出批准或者不予批准的决定。中国证监会的批准决定6个月内有效，基金管理公司应当在批准决定有效期内到香港设立机构12。

风控隔离：基金管理公司应当制定并实施与其香港机构之间的风险隔离措施，加强对香港机构的风险管理，防范由于香港机构的经营风险损害基金管理公司的正常运营13。

Report

Require

：基金管理公司应当自下列事项发生之日起15日内向中国证监会和公司经营所在地中国8 中国证券监督管理委员会令【第22号令】证券投资基金管理公司管理办法—-第四章 第三十四条 监会公告[2008]12号－关于证券投资基金管理公司在香港设立机构的规定—-第四条 证监会派出机构报告：

1. Hong Kong institution registration and obtaining business license from Hong Kong regulatory authorities；
2. make changes、Revoke decision of Hong Kong institution；
3. Make changes to the amount of investment in Hong Kong institutions、Determined by shareholding ratio or equity structure of Hong Kong institutions；
4. Changes in responsible personnel of Hong Kong organizations 14。

Fund management companies should follow the law、行政法规和中国证监会的规定将设立、Announcement of changes or cancellation of Hong Kong institutions15。

基金管理公司香港机构发生下列情形之一的，基金管理公司应当自发生之日起5日内向中国证监会和公司经营所在地中国证监会派出机构报告：

1. 机构及其人员受到调查或者处罚；
2. 机构财务状况发生重大变化；
3. 香港监管部门对其现场检查后；
4. Other matters that have a significant impact on the company's operations16。

Hong Kong SFC Licensing Information Book Licensing or Registration：The provision of asset management services is a regulated activity under the Securities and Futures Ordinance of Hong Kong，Need to apply for license or registration17。Non-authorized financial companies need to apply for a license，Approved financial companies need to be registered18。Exemptions：

1. Futures trading business，are exempted from applying for a license or registration19。
2. Involving futures and securities transactions，If the transaction object is only professional investors，Exemption from license or registration20。
3. Other wholly-owned subsidiaries provide relevant investment advice or services21，are exempted from applying for a license or registration。

14 证监会公告[2008]12号－关于证券投资基金管理公司在香港设立机构的规定—-Article 9 Securities Regulatory Commission Announcement[2008]12号－关于证券投资基金管理公司在香港设立机构的规定—-Article 10 Securities Regulatory Commission Announcement[2008]12号－关于证券投资基金管理公司在香港设立机构的规定—-Article 11

1. No need to apply for a license。

Apply for a license：Incorporated： Must be a company incorporated in Hong Kong or an overseas company registered with the Hong Kong Companies Registry 22 Competencies： Suitable business structure，Good internal control system and qualified personnel23。

Responsible person：

1. Each type of regulated activity must appoint at least two responsible officers to directly supervise the relevant activity24；
2. Arrangements will not cause conflicts，The same person may be appointed to supervise more than one type of regulated activity25；
3. 负责人中至少有一名是符合《证券及期货条例》所定义的执行董事26；
4. 所有的执行董事必须向证监会寻求核准27；
5. 呈交牌照申请时，向证监会一并呈交所有拟成为负责人员的核准申请28； 大股东等须具备适当人选的资格i29： 财政资源30： 对境内证券投资试点办法投资额度：香港子公司投资境内证券市场须经中国证券监督管理委员会（以下简称中国证监会）批准，并取得国家外汇管理局（以下简称国家外汇局）批准的投资额度33。

检测管理：国证监会依法对香港子公司的境内证券投资实施监督管理，The People's Bank of China (hereinafter referred to as the People's Bank of China) manages the RMB bank accounts opened in China by Hong Kong subsidiaries in accordance with the law.，The State Administration of Foreign Exchange manages the investment quota of Hong Kong subsidiaries in accordance with the law.,The People's Bank of China, together with the State Administration of Foreign Exchange, monitors and manages the inward and outward remittances of funds in accordance with the law34。

33China Securities Regulatory Commission Order [Order No. 76] Fund Management Company、Investment pilot measures—-China Securities Regulatory Commission Order [Order No. 76] Fund Management Company、Pilot Measures for Domestic Securities Investment by RMB Qualified Foreign Institutional Investors in Securities Companies—-Article 4 To carry out business, a domestic commercial bank with the qualification of a qualified foreign institutional investor custodian shall be entrusted to be responsible for the asset custody business.，Entrust domestic securities companies to act as agents for buying and selling securities。

Hong Kong subsidiaries can entrust domestic fund management companies、Securities companies conduct domestic securities investment management。

iQualification:

1. Steady business，Good credit standing；
2. Effective corporate governance and internal controls，Practitioners meet the relevant qualifications in Hong Kong

Require

；

1. Code of business conduct for the applicant and its domestic parent company，3 recent major penalties；
2. The applicant’s domestic parent company is qualified for securities asset management business；
3. Other conditions prescribed by the China Securities Regulatory Commission in accordance with the principles of prudential supervisioni。

Business application materials

1. Authenticity of application materials、accuracy、integrity、Compliance Commitment；
2. Copy of organization registration certificate；
3. A copy of the asset management business license issued by the Hong Kong Securities Regulatory Authority；
4. An explanation of whether the applicant and its domestic parent company have been punished by local regulatory authorities in the past three years；
5. The applicant’s key personnel meet relevant professional qualifications in Hong Kong

Require

proof；

1. Description of fund sources and domestic securities investment plan；
2. Description of the applicant’s company’s internal control system；
3. Audited financial report for the previous fiscal year；
4. Draft custody agreement signed with domestic custodian；
5. legal opinion；
6. 中国证监会

Require

Other documents i。

Investment quota application materials(Submit to the State Administration of Foreign Exchange

1. Securities investment plans, etc.；
2. A copy of the securities investment business license issued by the China Securities Regulatory Commission；
3. Notarized power of attorney for the custodian；
4. State Administration of Foreign Exchange

Require

Other materials providedi。*The China Securities Regulatory Commission and the State Administration of Foreign Exchange will make a decision on approval or disapproval within 60 days from the date of receipt of complete application documents.,and give written approval。

Investment supervision: invest in RMB financial instruments within the approved investment quota，Should comply with relevant regulations

Require

，Investment types and proportions are determined by the China Securities Regulatory Commission and the People's Bank of China。Hong Kong subsidiary invests in the interbank bond market，It should be handled in accordance with the relevant regulations of the People's Bank of Chinai。Information Disclosure Hong Kong Subsidiary Launches Domestic Securities Investment Business Pilot，Must abide by China’s regulations on shareholding ratios、Information disclosure and other laws and regulations and other relevant regulatory rules

Require

。

Hong Kong subsidiaries shall comply with the provisions of the People’s Bank of China，Submit RMB fund remittance and inward information to the People's Bank of China's RMB cross-border payment information management system through the custodian banki。Fund flow Hong Kong subsidiaries should manage relevant matters according to the investment quota.

Require

Handle fund transfers in and out。 Hong Kong subsidiaries can remit principal and investment income in RMB or purchase foreign exchangei。

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