SFC Audit Services for Licensed Corporations and Registered Institutions
Note: For more details, please refer to the SFC website https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Do-you-need-a-licence-or-registration
Services
If you are already an SFC licensed corporation or registered institution
If you are a corporation or registered institution preparing to apply for an SFC licence
CMCL provides a full range of audit services for corporations or registered institutions holding Type 1, 4 or 9 license:
– Licensed corporations are required to submit financial returns to the SFC on a regular basis, i.e. monthly, quarterly and biannually. Financial position, margin client analysis and assets under management shall be included therein. CMCL will assist you in preparing a series of financial returns to ensure that the corporation complies with the SFC regulations.
– Dedicated accountant
– Licensed corporations need a dedicated accountant throughout the year. For example, following the introduction of IFRS 16 Leases, accountants will need to consider the new standard when preparing for both the first FRR and the final audit for the financial year. Our team tracks all regulatory submissions from licensed corporate clients throughout the year and liaises with them regarding updates in accounting and from the SFC.
– Compliance audit
Reports to issue
1. Standard company audit report
2. Compliance audit report
Documents of licensed corporations to review:
1. Management’s business review questionnaire
2. Financial resources report
3. Audit questionnaire
4. Account disclosure document
Client funds shall be deposited into a segregated account within the same day
Standing authority is changed regularly
Interest on client funds is properly handled
Authorisation for withdrawals is properly obtained
– Compliance audit report
In this report, we are responsible for confirming to the SFC that you have complied with all the rules relating to the handling and record-keeping of client funds/assets upon ensuring that you have a detailed record of client funds that is consistent with the records of a clearing system, e.g. CCASS
CMCL provides one-stop service for corporations or institutions preparing to apply for Type 1, 4 or 9 license:
Before applying for an SFC licence, you will need to submit a detailed business plan to ensure that you are granted a licence that is suitable for your business. Our compliance services can assist in a number of areas, including
Hong Kong listed stock trading
Margin business
Bond trading
Futures and options trading
Leveraged foreign exchange trading
Initial public offering (IPO)
– Auditing services
Our auditors have many years of experience and a good reputation in the industry
– Referral to licensing consultants
When applying for the above licences, professional licensing consultants can make your application process much smoother. CMCL has long-term and stable licensing consultant partners. We can refer your case to them whenever the need arises during the process.