Public views are being sought on the proposed amendments to Schedule Five of the Securities & Futures Ordinance.

The amendment proposal aims to fine-tune the legal definitions of certain regulated activities to accommodate the latest developments of the industry and comments received from market participants on the licensing regime, the Securities & Futures Commission said. 

Part Two of Schedule Five defines the different types of regulated activities. People engaging in regulated activities, unless otherwise exempted, have to be licensed by or registered with the commission under the ordinance.

Amendment details

The proposed amendments will extend the definition of "asset management" to include management of real estate investment trusts.

It will also amend the definition of "dealing in securities" so that:

* in a case where all parties to the dealing concerned are authorised financial institutions and the dealing is by an approved money broker who represents each of the parties concerned, the dealing is to be excluded from the definition; and,

* anyone who, as principal, disposes of securities other than to a professional investor, is not to be excluded from the definition.

The proposal will also amend the definitions of "advising on securities" and "advising on futures contracts" so that the giving of advice by a licensed asset manager, solely for the purposes of carrying on fund management activities pertaining to collective investment schemes, is to be excluded from the definitions.

For details of the proposal click here.

The public are invited to submit comments by March 15. A Consultation Conclusions Paper will be published as soon as practicable after the end of the consultation period.

Written comments should be sent to 8/F Chater House, 8 Connaught Road Central; faxed to 2293 5892; or emailed to schedule5@sfc.hk. For online submissions visit the commission's website.