In Hong Kong’s fiercely competitive financial services landscape, insurance brokers face the constant challenge of differentiating themselves and delivering greater value to their clients. One innovative strategy gaining traction is rebranding as multiple family offices (MFOs). By transforming from traditional insurance providers into comprehensive wealth management hubs for high-net-worth (HNW) and ultra-high-net-worth (UHNW) families, brokers…

Hong Kong is an international financial hub with a mature legal and financial system, and its insurance market is transparent and well-developed. According to the Insurance Ordinance (Cap. 41 of Hong Kong Laws), anyone or any company conducting insurance broker business in Hong Kong must apply for and obtain an insurance broker licence from the…

1. Private Securities Funds (Private Equity / Securities-Focused Fund) OverviewA private fund set up in an offshore jurisdiction (e.g. Cayman, BVI) invests mainly in Hong Kong or overseas listed securities. It requires an investment manager (management team) in Hong Kong to make investment decisions. 2. Multi-Family Office / External Asset Management (EAM) OverviewProvides discretionary asset…

Below is a simpler British English version of the “Twenty Common Scenarios (Revised Edition)” text. It explains how a broker with a Type 1 licence (regulated by Hong Kong’s Securities and Futures Commission, or SFC) may or may not hold client assets and the implications for various business activities. We distinguish: Scenario 1: Purely Introducing…

1. What Is a “Type 1 Licence”? The “Type 1 Licence” (Dealing in Securities) is issued by Hong Kong’s Securities and Futures Commission (SFC). It regulates those who carry out securities dealing activities (i.e. a “regulated activity”). The following activities fall under Type 1: If you also want to act as a “sponsor” (helping a…

Q1: Why has the concept of a ‘Multi-Family Office’ emerged? In the early days of wealth management, ‘Investment Advisor’ or ‘External Asset Manager (EAM)’ were common terms. As demand grew from ultra-high-net-worth individuals, some firms rebranded the traditional ‘managing assets for clients’ model into the concept of a ‘Family Office’ to emphasise an image of…

1. What is an “MFO”? 2. Multi-Family Offices and Insurance Business are “Inextricably Linked” 2.1 Doubling as Insurance Brokers, Dual Roles Many self-proclaimed “MFOs” actually also hold insurance broker or agent qualifications. Why? The problem is that double charging naturally creates conflicts of interest: 2.2 Not Just Insurance: Other Common Conflicts Beyond insurance, some MFOs…

I. Do Family Offices Need to Apply for a Hong Kong SFC License? 1. Core Principle: Activity-Based Determination Hong Kong does not have a dedicated licensing regime specifically for “family offices.” Instead, licensing requirements are generally evaluated under the Securities and Futures Ordinance (SFO) based on “regulated activities.” 2. Single-Family Office (SFO) Conclusion: If it…

1. Fundamental Questions about the SFC’s Type 9 Regulated Activity (RA9) Q1: What is the Hong Kong SFC’s Type 9 Regulated Activity (Type 9 Licence)? A: Q2: Is a Type 9 Licence essentially the same as being a private/public fund manager in Mainland China? A: Q3: What are some common business scenarios where a Type…

I. Core Concept of the Hong Kong SFC Type 9 Regulated Activity (RA9) — Asset Management II. Typical Additional Conditions and Restrictions Depending on the approved business model, internal compliance, and conditions the SFC attaches during the licensing process, some Type 9 licensees have specific limitations recorded on their licenses. These conditions are mandatory if…