HKSI Paper 6 Back-office compliance question: business days after the event

HKSI Paper 6Back-office compliance

Pine Ridge Asset Management Ltd, licensed for Type 9 only, has the following events in November 2026. Which of them must it notify to the SFC in writing within 7 business days after the event takes place? I. It hires a junior research analyst who will not carry on any regulated activity. II. It appoints a new complaints officer to replace one who has left. III. It closes a trust account at a Hong Kong bank that it used for client money. IV. It starts managing a private fund as well as discretionary accounts, a significant change in the nature of its business.

A II and III only
B I, II and IV only
C II, III and IV only
D I, II, III and IV

Show the answer and explanation

Answer: C. II, III and IV only

Statements II, III and IV are correct. Section 4(2) and Part 1 of Schedule 3 to the Licensing Information Rules require a licensed corporation to notify, within 7 business days after the change, changes in its complaints officer (item 4), the opening or closing of bank accounts used for regulated activities, including whether they are trust accounts (item 12), and significant changes in the nature of its business and services (item 8). Statement I is wrong: the notification duties attach to licensed representatives, responsible officers, executive officers and other listed matters; hiring staff who carry on no regulated activity is not a notifiable change. Source: Securities and Futures (Licensing and Registration) (Information) Rules (Cap. 571S) s.4(2), Sch. 3 Pt 1 items 4, 8, 12 (as at October 2026).

Common mistake

Treating every staff change as notifiable. Only changes involving licensed or key persons, or the listed corporate matters, must be reported.

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Related HKSI Paper 6 questions

Lantau Bank Ltd, an authorized institution registered with the SFC for Type 9 regulated activity, makes a significant change to the internal control framework in the business plan for its asset management business. Under the Licensing Information Rules, what must it do?From Monday 2 November 2026, Jade Harbour Nominees Ltd, a wholly owned Hong Kong subsidiary of Jade Harbour Asset Management Ltd (Type 9, free of any no-client-assets condition), starts holding the manager's clients' listed shares in Hong Kong. Which notification requirement applies?Kowloon Peak Asset Management Ltd holds a Type 9 licence with the condition that it must not hold client assets. Which of the following arrangements are consistent with the condition?

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Original study material mapped to the public HKSI Paper 6 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.