FAQs – Licensing: Competence requirements for individuals

The Securities and Futures Commission, SFC, has published an updated version of its frequently asked questions (FAQs) on the competence requirements of individuals for licensing purposes. The FAQs clarify numerous issues around these requirements, ranging from the Commission’s understanding of „management experience“, to an applicant’s (or registrant’s) obligations regarding the participation in „Continuous Professional Training (CPT)“.
In this latest revised version, the Commission has added a new FAQ, FAQ 17, which reads as follows – as quoted:
FAQ 17: Can an LR applicant who is experienced in the private fund management industry apply for LRP Conditional Exemption 4 under the Guidelines on Competence?
Answer: Yes. In line with the SFC’s risk-based and pragmatic licensing approach, we will consider granting conditional exemption to an LR applicant if he or she satisfies the criteria set out in paragraph 4.4.3.5 (a) to (c) of the Guidelines on Competence.