Type 1 Dealing in Securities
SFC license for dealing in tokenized securities and security tokens under SFO framework.
Securities and Futures Ordinance, Part V (Type 1)
Capital Required
HKD 5,000,000 paid-up + HKD 3,000,000 liquid capital
Timeline
3-6 months
Fees
HKD 200,000-300,000 application + HKD 100,000-150,000 annual
Regulatory Body
Securities and Futures Commission (SFC) / Hong Kong Monetary Authority (HKMA)
Legislative Framework
Securities and Futures Ordinance (SFO), Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), Stablecoins Ordinance 2025
Last updated: August 2025
Key Requirements
Minimum HKD 5,000,000 paid-up share capital and HKD 3,000,000 liquid capital continuously per SFO Type 1
Registered representatives with Type 1 certification approved by SFC for all securities activities
Comprehensive securities dealing procedures covering order execution, best execution, and market conduct
Compliance Officer appointed with securities dealing experience and SFC fit-and-proper approval
Clear client agreements specifying dealing services, fee arrangements, conflicts, and complaints per SFO
Professional indemnity insurance of minimum HKD 500,000-1,000,000 covering dealing liabilities
Market conduct systems including internal compliance monitoring, audit trails, and suspicious detection
Segregated client account structures for securities holdings with qualified custodian arrangements
Application Process
Submit SFC Type 1 Dealing in Securities License application specifying tokenized securities trading
Provide organizational structure with CVs for Compliance Officer and registered representatives with certifications
Include comprehensive compliance manual with securities dealing procedures and market conduct obligations
Submit client agreements, fee schedules, and execution procedures aligned with SFO requirements
Arrange custodian appointment with SFC-licensed institution and provide custody documentation
SFC review and approval following assessment of compliance framework and registered representatives
Expected Total Timeline
3-6 months
Ongoing Obligations
After obtaining your Type 1 Dealing in Securities, these are the continuing compliance requirements you must maintain.
Quarterly capital adequacy reports and annual independent audit by SFC-approved auditors
Quarterly execution quality reports analyzing pricing, spreads, and slippage versus benchmarks
Monthly client complaints and dispute resolution tracking with quarterly SFC escalation reporting
Annual fit-and-proper assessments for all registered representatives with mandatory certification renewal
Quarterly compliance certifications regarding market conduct obligations and conflicts management
Annual review of client agreements and execution procedures with SFO compliance certification
Cost Summary
Capital Requirement
HKD 5,000,000 paid-up + HKD 3,000,000 liquid capital
Application & Licensing Fees
HKD 200,000-300,000 application + HKD 100,000-150,000 annual
Jurisdiction Setup Cost
$120,000-$350,000
Annual: $100,000-$300,000
Other Hong Kong Licenses
Explore other license types available in Hong Kong.
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Need help with Type 1 Dealing in Securities?
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