1. From Private Kitchen to Multi-Family Office Imagine you come from a wealthy family that loves fine dining but doesn’t want to eat out in crowded restaurants all the time. You decide to bring in a top culinary team—say, the chefs from Da Dong (famous for Peking duck) or Li Family Cuisine (renowned for classic…

1. What Is the “334” Strategy? The so-called “334” strategy involves using a holding company to allocate shares roughly at 33%, 34%, and 33% among three or more investors, thereby preventing any single party from holding over 35% of the shares. This arrangement aims not only to avoid the need for a substantial shareholder approval…

Introduction Many investors mistakenly believe that by registering a holding company in places like the Cayman Islands or British Virgin Islands (BVI), and then having this holding company own a Hong Kong licensed corporation (commonly known as Type 1, 4, or 9 license), they can bypass the major shareholder approval process of the Hong Kong…

Preface In Hong Kong’s financial market, licensed corporations (commonly known as Type 1, Type 4, and Type 9 licenses) are often viewed as assets with “built-in credibility” due to strict regulation by the Securities and Futures Commission (SFC). However, the SFC also maintains rigorous scrutiny over shareholding structures and major shareholders’ qualifications. As a result,…

Preface Besides the “334” strategy, many other “clever” approaches circulate in the market that attempt to avoid SFC approval for major shareholders, such as splitting shareholdings into numerous small portions below 10%, or diluting actual control through multiple layers of offshore companies. This article will explore several common cases and explain how these methods are…

Insurance Rebates: Compliance vs. Boundary-Pushing, Complete Guide I. Background and Limitations of Rebates In Hong Kong, regarding long-term insurance products (e.g., life insurance, savings with dividends, investment-linked insurance), the Insurance Authority (IA) has clear guidelines (e.g., GL25 – Guideline on Offering of Gifts) prohibiting unrecorded or under-the-table “money-giving” rebates. II. Common “Compliant Practices”: Transparent Approaches…

Insurance brokerage firms can legally give “rebates” to clients as long as they follow the law and regulatory requirements. The most important thing is to ensure the process is transparent, documented, and not done secretly. Here are three main approaches: 1. Using the Client’s Close Friends or Family as “Referrers” 2. Formally Documenting “Rebate” Terms…

In the insurance industry, especially in markets like Hong Kong and the U.S., two practices often spark debate: rebating and the involvement of unlicensed third parties. Rebating happens when brokers or agents offer customers a portion of the premium or commission as an incentive to buy insurance. Meanwhile, unlicensed third parties are people without proper…

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…