Insurance requirements applicable to certain licensed corporations

Securities and Futures Commission

Eng 繁簡

Alert List

Market infrastructure & trading

Investor identification and OTC securities reporting

Part XV - Disclosure of interests

Publicly offered investment products

Mainland-Hong Kong Mutual Recognition of Funds

Mainland-Hong Kong Stock Connect

CFTC exemption to deal directly with U.S. customers

Business continuity/contingency information

SFC corporate matters

Insurance requirements applicable to certain licensed corporations

Q1 : Is every licensed corporation required to take out insurance under the Securities and Futures (Insurance) Rules (Rules)?

No. Currently, the following two categories of licensed corporations are required to take out insurance under the Rules:

(1) Participants of The Stock Exchange of Hong Kong Limited and licensed for Type 1 regulated activity;

(2) Participants of Hong Kong Futures Exchange Limited and licensed for Type 2 regulated activity.

For more information, please refer to the latest Circular to Licensed Corporations which are Participants of The Stock Exchange of Hong Kong Limited or Hong Kong Futures Exchange Limited issued by the SFC.

Q2 :
If a corporation applies or is licensed for Type 1 or Type 2 regulated activity and intends to become an exchange participant, when does it need to take out the required insurance?

A corporate licence applicant or licensed corporation should take out the required insurance under the relevant approved master policy before or at such time when it becomes an exchange participant and is licensed for Type 1 or Type 2 regulated activity.

For related administrative matters, it may approach the scheme administrator directly. The related contact information is set out in the latest Circular to Licensed Corporations which are Participants of The Stock Exchange of Hong Kong Limited or Hong Kong Futures Exchange Limited issued by the SFC.

Last update: 23 Apr 2024

We use cookies to improve the website performance and user experience. If you continue to use this website, you are agreeing to their uses. Learn more about our privacy policy.