SFC Licence Applications: RO Competence and Track Record Review Checklist

What the Entry Standards Actually Require

An applicant for a responsible officer role under a licence type must satisfy the entry requirement for that licence type in the Securities and Futures (Licensing and Registration) (Information) Rules, which apply to licensed corporations. The same entry requirement is also a relevant consideration for a licensed representative under the same licence type.

Before that, the person must be fit and proper to be licensed or registered, and must have the proper qualifications and experience (including management experience) to perform the regulated activity.

The entry requirement itself has two limbs. First, academic or professional qualifications in a relevant field, or another qualification the SFC accepts. Second, industry experience in a relevant field or in a role the SFC considers a reasonable substitute; that industry experience must be built up over the three years immediately before the application, and that period runs from the date the person is licensed or registered to the date a licence or registration is granted.

Someone Without a Degree Is Not Automatically Out

An applicant who does not meet the academic qualification part of the entry requirement may still satisfy the industry experience requirement if they have at least three years of relevant industry experience gained within the three years immediately before the application, or, where the SFC approves, experience that is considered acceptable.

For a licensed representative, that period is defined as the three years immediately before the application, measured from the date of the person's first application for licence or registration to the date the licence or registration is granted. In practice this means the window is anchored to the application events, not to the individual's entire working life, so evidence has to be mapped onto the right dates.

Which Roles Count as Industry Experience

An applicant may meet the industry experience requirement if they hold an academic or professional qualification in a relevant field, and the SFC considers the person to be competent in the regulated activity. The evidence set includes:

• at least three years of experience in the industry over the three years immediately before the application;
• acceptable relevant experience that is considered reasonable by the SFC; and
• proven management experience in the six years immediately before the application.

Where a person has no other academic qualification, a professional qualification in a relevant field may still establish that the person is competent in the regulated activity, subject to relevant industry experience.

These routes are drawn from the same framework and must be read together. Holding one component does not automatically satisfy the others; each test applies to the facts of the particular individual.

Where Reviewers Present a Written Test

In the case of an application for a responsible officer, the person may be required by the SFC to sit for and pass a written test within a specified time, and that test may only be waived if the SFC is satisfied of certain matters.

Standards, minimum qualifications and experience requirements for both responsible officers and licensed representatives are set and reviewed by the SFC on an ongoing basis. The SFC may also approve additional qualifications or experience requirements, impose conditions and provide exemptions in respect of the requirements for responsible officers.

These two points explain why review is not purely mechanical. The framework leaves the SFC discretion to test a candidate's knowledge and to adjust the way requirements are applied.

Cross-Sector Backgrounds and Overseas Credentials

An applicant's knowledge and experience may be counted under the criteria set out in the relevant Appendix. Experience gained in the banking, insurance, accounting or legal sectors may be considered relevant, and experience in an overseas jurisdiction may be relevant. Whether it is accepted turns on how closely the experience relates to the regulated activity the person is intended to perform.

This means that a candidate whose career sits outside the brokerage or asset-management desk is not disqualified at the outset. The question is whether the knowledge and experience map onto the specific regulated activity being applied for.

When a suitability question arises, the criteria address financial status and the ability to carry on the regulated activity competently, honestly and fairly.

What the Application Must Establish

For a responsible officer, the applicant must show that the officer is competent in the regulated activity and has sufficient authority over the business of the regulated activity to discharge the duties and responsibilities of a responsible officer.

Academic and professional qualifications are handled as follows. The Academic Qualification part of the entry requirement is met by being qualified in any field. Qualification may be someone's academic qualification or, subject to being considered appropriate by the SFC, a professional qualification acquired through training and examination.

The Industry Experience part is met by having experience in the industry as approved, for a period approved by the SFC; the SFC normally requires at least three years of relevant industry experience in the three years immediately before the application. The relevant three years is calculated from the date of the person's first application for licence or registration to the date the licence or registration is granted.

Finally, a person is fit and proper to be licensed only if the person has the proper qualifications and experience (including management experience) to perform the competent regulated activity. The fit and proper assessment is not limited to the technical competence test; it frames the whole application.

Bringing This Into Internal Review

An internal memo for each prospective responsible officer should answer a short sequence of questions, each tied to one of the tests above.

• Does the candidate meet the academic or professional qualification part of the entry requirement for the specific licence type?
• Does the candidate's experience fall inside the three years immediately before the application, calculated from first application date to grant date?
• If the candidate lacks a degree, can three years of relevant industry experience in those three years, or SFC-approved acceptable experience, carry the application?
• Which regulated activity is the experience evidence tied to, and is that relevant experience within the relevant three-year period?
• Where the candidate has no other academic qualification, is there a relevant professional qualification, and is it supported by relevant industry experience?
• Is the competence in the regulated activity documented, and is the evidence specific?
• Is proven management experience in the six years immediately before the application documented, including the role held and the period?
• For cross-sector or overseas experience, is the link to the regulated activity explained rather than asserted?
• Is the candidate's financial status and ability to carry on the regulated activity competently, honestly and fairly addressed?
• For a responsible officer, is the authority over the business of the regulated activity set out?
• If the SFC requires a written test, is there a plan to sit and pass it within the specified time?
• Are all dates internally consistent with the definitions used in the entry test?

Running this checklist early reduces the risk that a submission is assembled around a general career story instead of the specific tests the SFC applies. It is a preparation discipline, not a shortcut around the tests themselves.

FAQ

Does three years of relevant industry experience need to have been continuous? The material says the experience must be built up over the three years immediately before the application and the relevant period runs from the date of the person's first application for licence or registration to the date the licence or registration is granted. An applicant should map each period of relevant experience onto those dates.

Can a candidate without a formal academic qualification still qualify? Yes, it is possible. An applicant who does not meet the academic qualification part may still satisfy the industry experience requirement with at least three years of relevant industry experience gained within the three years immediately before the application, or with experience the SFC approves as acceptable.

Can experience in banking, insurance, accounting or legal work count? Experience in those sectors, including overseas experience, may be considered relevant. Whether it is accepted depends on how closely it relates to the regulated activity the person is intended to perform.

What is the management experience requirement? An applicant may meet the industry experience requirement by showing proven management experience in the six years immediately before the application. That evidence is separate from the academic qualification route and should be documented with the role and dates.

Will a responsible officer have to sit an examination? The SFC may require a responsible officer to sit for and pass a written test within a specified time in respect of an application, and may waive it only if satisfied of certain matters. No blanket exemption applies across all applicants.