{"id":74,"date":"2020-04-01T19:58:41","date_gmt":"2020-04-01T11:58:41","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=74"},"modified":"2021-03-03T11:50:59","modified_gmt":"2021-03-03T03:50:59","slug":"pre-submission","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/pre-submission\/","title":{"rendered":"SFC Licensing and On-Going Compliance"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;Content4Layout&#8221; module_class=&#8221;content-wrapper4&#8243; _builder_version=&#8221;4.0.5&#8243;][et_pb_row admin_label=&#8221;Breadcrumb&#8221; _builder_version=&#8221;4.4.3&#8243; background_image=&#8221;\/legal\/common\/layout4_banner.jpg&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumb&#8221; module_class=&#8221;breadcrumb4-wrapper&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"section-title\">\r\n<h2>Sponsors<\/h2>\r\n<\/div>\t\r\n<div class=\"breadcrumb\">\r\n\t<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/sponsors\/' title='Sponsors'>Sponsors<\/a><\/li><li><span>SFC Licensing and On-Going Compliance<\/span><\/li><\/ul>\r\n<\/div>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;3_4,1_4&#8243; admin_label=&#8221;MainContent&#8221; module_class=&#8221;content4-main&#8221; _builder_version=&#8221;4.0.5&#8243;][et_pb_column type=&#8221;3_4&#8243; _builder_version=&#8221;4.0.5&#8243;][et_pb_text admin_label=&#8221;ContentMenuBar1&#8243; _builder_version=&#8221;4.4.3&#8243;]<div class=\"content-menubar\">\r\n<div class=\"page-menu-panel\">\r\n<h3>Sponsors<\/h3>\r\n<span class=\"hamburger\"><\/span>\r\n<\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-72 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/\">Overview of Sponsor&#8217;s Role<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-81\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/listing-steps\/\">Appointments, Fees, Staffing and Controls<\/a><\/li>\n\t<li class=\"page_item page-item-82\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/application-for-listing\/\">Sponsor Independence<\/a><\/li>\n\t<li class=\"page_item page-item-83\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/publication-and-circulation-of-the-prospectus\/\">Preparation of Listing Document<\/a><\/li>\n\t<li class=\"page_item page-item-84\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/marketing-the-offer\/\">Sponsor&#8217;s Declaration<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-73 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/sponsors-due-diligence\/\">Due Diligence<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-89\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/sponsors-due-diligence\/verification\/\">Sponsor Due Diligence Guidelines<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-74 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/pre-submission\/\">SFC Licensing and On-Going Compliance<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-91\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/pre-submission\/competent-person\/\">Eligibility Criteria for Principals<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-75\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/coordination\/\">Interaction with Competent Persons and Other Experts and Third Party Advisers<\/a><\/li>\n<\/ul>\r\n<\/div>[\/et_pb_text][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-title mt-30\">SFC Licensing and On-Going Compliance<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.4.8&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243;]<p>Sponsors must be licensed or registered for \u201cType 6\u201d regulated activity under the Hong Kong Securities and Futures Ordinance (Cap. 571) (SFO). In addition, they must meet the eligibility criteria prescribed in the Securities and Futures Commission\u2019s (SFC\u2019s) <em>Additional Fit and Proper Guidelines for Corporations and Authorised Financial Institutions applying or continuing to act as Sponsors and Compliance Advisers<\/em> (Sponsor Guidelines) in order to be permitted to undertake sponsor work as part of their Type 6 regulated activity.<\/p>\r\n<p>As licensed or registered persons, sponsors are subject to:<\/p>\r\n<ul>\r\n<li>the SFC\u2019s Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct), which sets out overall principles and requirements applicable to the conduct of all licensed and registered persons to which they must adhere in ensuring that they are fit and proper to remain licensed and registered;<\/li>\r\n<li>the SFC\u2019s <em>Corporate Finance Adviser Code of Conduct<\/em> (CFA Code) which provides specific conduct guidance to corporate finance advisers;<\/li>\r\n<li>the SFC\u2019s <em>Fit and Proper Guidelines<\/em>;<\/li>\r\n<li>the <em>SFC\u2019s Guidelines on Competence<\/em>;<\/li>\r\n<li>the Sponsor Guidelines, which set out continuing compliance requirements, including specific competence requirements as well as the responsibilities of management and sponsor principals.<\/li>\r\n<\/ul>\r\n<p>Sponsors are also required to maintain proper systems, controls and procedures in accordance with the <a href=\"http:\/\/en-rules.sfc.hk\/net_file_store\/new_rulebooks\/h\/k\/HKSFC3527_162_VER10.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">SFC\u2019s Management, Supervision and Internal Control Guidelines for Licensed Persons<\/a>.<\/p>\r\n<p>The capital and other financial requirements applicable to sponsors as persons licensed under the SFO are set out in the <a href=\"http:\/\/www.legislation.gov.hk\/blis_pdf.nsf\/6799165D2FEE3FA94825755E0033E532\/732A20EF6E20AF5D482575EF001D7822\/$FILE\/CAP_571N_e_b5.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Securities and Futures (Financial Resources) Rules <\/a>(FRRs). Sponsors are required to have a minimum paid up share capital of HK$10 million and liquid capital of HK$3 million, unless the corporation does not hold client assets, in which case HK$100,000 is required. A licensed entity must notify the SFC if its liquid capital falls below 120% of the required minimum. Accordingly, the licensed entity is effectively required to maintain a 20% \u201cbuffer\u201d over and above the required minimum.<\/p>\r\n<p>For more information on eligibility criteria for principals under the Sponsor Guidelines, please click <a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/pre-submission\/competent-person\/\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/p>[\/et_pb_text][et_pb_text admin_label=&#8221;SubM-Children&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-91\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/pre-submission\/competent-person\/\">Eligibility Criteria for Principals<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_4&#8243; _builder_version=&#8221;4.0.5&#8243;][et_pb_text admin_label=&#8221;SideMenu-Content4&#8243; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;228124&#8243; saved_tabs=&#8221;all&#8221;]<div class=\"side-menu\">\r\n<div class=\"side-menu-panel\">\r\n<h3>Sponsors<\/h3>\r\n<p><span class=\"hamburger\"><\/span>\r\n<\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-72 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/\">Overview of Sponsor&#8217;s Role<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-81\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/listing-steps\/\">Appointments, Fees, Staffing and Controls<\/a><\/li>\n\t<li class=\"page_item page-item-82\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/application-for-listing\/\">Sponsor Independence<\/a><\/li>\n\t<li class=\"page_item page-item-83\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/publication-and-circulation-of-the-prospectus\/\">Preparation of Listing Document<\/a><\/li>\n\t<li class=\"page_item page-item-84\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/listing-process\/marketing-the-offer\/\">Sponsor&#8217;s Declaration<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-73 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/sponsors-due-diligence\/\">Due Diligence<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-89\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/sponsors-due-diligence\/verification\/\">Sponsor Due Diligence Guidelines<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-74 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/pre-submission\/\">SFC Licensing and On-Going Compliance<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-91\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/pre-submission\/competent-person\/\">Eligibility Criteria for Principals<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-75\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/sponsors\/coordination\/\">Interaction with Competent Persons and Other Experts and Third Party Advisers<\/a><\/li>\n<\/ul><\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Side posts thumbs&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"side-posts-v2\">\r\n<h2>Read our latest News<\/h2>\r\n<div class=\"thumb-v2\">\n\t\t<a href=\"https:\/\/charltonsnaturalresources.com\/en\/mosaic-to-sell-brazilian-phosphate-mine-in-125-million-deal\/\"><img decoding=\"async\" src=\"https:\/\/charltonsnaturalresources.com\/wp-content\/uploads\/mosaic-to-sell-brazilian-phosphate-mine-in-125-million-deal.jpg\" \/><\/a>\n\t\t<h5><span>15 Jan 2025<\/span> | <span>News<\/span><\/h5>\n\t\t<h3>Mosaic to sell Brazilian phosphate mine in $125 million deal<\/h3>\n\t\t<\/div><div class=\"thumb-v2\">\n\t\t<a href=\"https:\/\/charltonsnaturalresources.com\/en\/mali-to-get-1-2bn-from-miners-after-talks\/\"><img decoding=\"async\" src=\"https:\/\/charltonsnaturalresources.com\/wp-content\/uploads\/mali-to-get-1-2bn-from-miners-after-talks-1.jpg\" \/><\/a>\n\t\t<h5><span>15 Jan 2025<\/span> | <span>News<\/span><\/h5>\n\t\t<h3>Mali to get $1.2bn from miners after talks<\/h3>\n\t\t<\/div>\r\n<\/div>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p>NATURAL RESOURCES News January 2025 Mali to get $1.2bn from miners after talks &nbsp; On 13 January 2025, Mali is set to receive 750 billion CFA francs ($1.2 billion) from miners in the first quarter of 2025, following an overhaul of its mining sector. This follows a December payment of 500 billion CFA francs after negotiations with mining companies, as stated by Finance [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":70,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:paragraph -->\r\n<p>Sponsors must be licensed or registered for \"Type 6\" regulated activity under the Hong Kong Securities and Futures Ordinance (SFO). In addition, they must meet the eligibility criteria prescribed in the Securities and Futures Commission's (SFC's) <em>Additional Fit and Proper Guidelines for Corporations and Authorised Financial Institutions applying or continuing to act as Sponsors and Compliance Advisers<\/em> (Sponsor Guidelines) in order to be permitted to undertake sponsor work as part of their Type 6 regulated activity.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>As licensed or registered persons, sponsors are subject to:<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>the SFC's Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct), which sets out overall principles and requirements applicable to the conduct of all licensed and registered persons to which they must adhere in ensuring that they are fit and proper to remain licensed and registered;<\/li><li>the SFC's <em>Corporate Finance Adviser Code of Conduct<\/em> (CFA Code) which provides specific conduct guidance to corporate finance advisers;<\/li><li>the SFC's <em>Fit and Proper Guidelines<\/em>;<\/li><li>the <a href=\"http:\/\/en-rules.sfc.hk\/net_file_store\/new_rulebooks\/h\/k\/HKSFC3527_403_VER10.pdf\">SFC's Guidelines on Competence<\/a>;<\/li><li>the Sponsor Guidelines, which set out continuing compliance requirements, including specific competence requirements as well as the responsibilities of management and sponsor principals.<\/li><\/ul>\r\n<!-- \/wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Sponsors are also required to maintain proper systems, controls and procedures in accordance with the <a href=\"http:\/\/en-rules.sfc.hk\/net_file_store\/new_rulebooks\/h\/k\/HKSFC3527_162_VER10.pdf\">SFC's Management, Supervision and Internal Control Guidelines for Licensed Persons<\/a>.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The capital and other financial requirements applicable to sponsors as persons licensed under the SFO are set out in the <a href=\"http:\/\/www.legislation.gov.hk\/blis_pdf.nsf\/6799165D2FEE3FA94825755E0033E532\/732A20EF6E20AF5D482575EF001D7822\/$FILE\/CAP_571N_e_b5.pdf\">Securities and Futures (Financial Resources) Rules<\/a>\u00a0(FRRs). Sponsors are required to have a minimum paid up share capital of HK$10 million and liquid capital of HK$3 million, unless the corporation does not hold client assets, in which case HK$100,000 is required. In the case of liquid capital, the required minimum is the higher of the above stated minimum sum or 5% of liabilities. A licensed entity must notify the SFC if its liquid capital falls below 120% of the required minimum. Accordingly, the licensed entity is effectively required to maintain a 20% \"buffer\" over and above the required minimum.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>For more information on eligibility criteria for principals under the Sponsor Guidelines, please click <a href=\"https:\/\/charltonsnaturalresources.com\/en\/pre-submission?id=93\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>.<\/p>\r\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[26],"class_list":["post-74","page","type-page","status-publish","hentry","category-sponsors","cat-23-id"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/74","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=74"}],"version-history":[{"count":18,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/74\/revisions"}],"predecessor-version":[{"id":232799,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/74\/revisions\/232799"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/70"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=74"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=74"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}