HKSI Paper 6 Back-office compliance question: Licensing Information Rules

HKSI Paper 6Back-office compliance

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?

A Notify only the SFC in writing within one business day after the change takes effect
B Notify both the SFC and the HKMA in writing within 7 business days after the change
C Notify both the SFC and the HKMA in writing at least 7 business days before the change
D Notify only the HKMA in writing within 7 business days after the change, as its frontline regulator

Show the answer and explanation

Answer: B. Notify both the SFC and the HKMA in writing within 7 business days after the change

Part 2 of Schedule 3 to the Licensing Information Rules lists the changes a registered institution must notify, including significant changes in its business plan covering internal controls, organisational structure and contingency plans (item 9). Under s.4(2)(b), notice of the change, with a full description, goes to the SFC and, because the information relates to a registered institution, also to the Monetary Authority, within 7 business days after the change. Notifying the HKMA alone misses the SFC, which keeps the register. Advance notice applies to cessation and changes of address under s.135 of the SFO, not to this change. One business day is the deadline for financial resources events, not Schedule 3 changes. Source: Securities and Futures (Licensing and Registration) (Information) Rules (Cap. 571S) s.2(2), s.4(2), (4), Sch. 3 Pt 2 item 9 (as at October 2026).

Common mistake

Assuming a bank deals only with the HKMA. For Schedule 3 changes a registered institution notifies both the SFC and the HKMA.

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Related HKSI Paper 6 questions

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?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?

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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.