We return with the second part to our two-part series on the Consultation Conclusions on Proposed Enhancements to the Competency Framework for Intermediaries and Individual Practitioners published on 18 June 2021. As reported last week, the proposed enhancements will be reflected in the revised Guidelines on Competence (“Competence Guidelines”) and the revised Guidelines on Continuous Professional Training (“CPT Guidelines”). Both will become effective on 1 January 2022.
This second part of the series will focus on the enhanced competence requirement in relation to advising on the Codes on Takeovers and Mergers and Share Buy-backs (“Takeovers Codes”) matters as well as key changes to the CPT Guidelines.
Responsible Officers (“RO”)
For ROs proposing to advise on Takeovers Codes matters in a sole capacity (“TCRO”), there are two options to satisfy the eligibility requirements:-
If the SFC is not satisfied with the competency of the RO to act in a sole capacity, the SFC may impose a licensing condition on the individual’s license such that he must act together with another TCRO when advising clients on matters regulated by the Takeovers Code i.e. he can do so only in a non-sole capacity.
CPT Guidelines
The key changes are summarised as follows:-
- The CPT requirements will be determined on a hours “per individual” basis instead of “per regulated activity” basis.
- For LRs and Relevant Individuals[1], they are required to complete a minimum of 10 CPT hours per calendar year. ROs and Executive Officers[2] are to complete two additional CPT hours on regulatory compliance.
- Within 12 months after an individual first joins the industry in Hong Kong as an LR/ReI/EO/RO, they must undertake 2 CPT hours on ‘ethics’.
