Managed Account Setup in Hong Kong

[silveredge]

so you shouldnt be trading thru a hk ltd

 

[GRULSTMRNN]

That is impossible to judge without some vital missing information.

so you shouldnt be trading thru a hk ltd

 

[writser]

And under HK securities law you can manage funds for others without a dealing license but you have to meet strict standards to fall under this excemption.i would need to look up the specifics but I do remember that there certain thresholds such as max number investors, type of investors ..

I tried to look up for this sort of exemption under SFO. But I wasn't able to find anything. Can you please check for the specifics and let us know here? Would be of great help! Thanks!



Since its just friends and family, I think an easier option would be get a POA on their brokerage accounts and invoice them separately through an offshore company. IB HK currently allows up to 5 accounts on their Friends & Family platform in Hong Kong. But you cannot charge any fee to those accounts.

 

[blueraincap]

A year or so back I recall that Friends account website stated it wasn't available to IBHK, but don't see it anymore. IBHK confirmed that following doesn't apply here? I just feel that charging a fee separately instead of netting makes collection very troublesome and outright difficult.

Friends and Family Account Structure
A master account linked to individual client accounts.

• The master account is used for fee collection and trade allocations

Also cannot identify any relevant exemptions besides possibly the Individual Professional Investors with $HK8mn+ which looks cumbersome to document (certified by a custodian or accountant? arghh..) https://www.charltonslaw.com/legal/...-license/Professional-Investor-Definition.pdf

 

[Dicer]

Re HK laws and regulations, you gotta choose what you want. You can't have it all. Either you are trading on your own and generate pnl for yourself in which case no capital gains tax accrue. Neither do capital gains taxes accrue if you trade as a limit liability company. But you should and will be taxed a corporate tax rate because you conducted corporate business when you manage and trade someone else's accounts as a corporate entity. So far this should be straight forward logic.

Your info Re licensing is wrong. The cost are negligibly low but you do need to be sponsored by a licensed firm if I remember correctly.

And under HK securities law you can manage funds for others without a dealing license but you have to meet strict standards to fall under this excemption.i would need to look up the specifics but I do remember that there certain thresholds such as max number investors, type of investors ..

professional advisors.

one of the definitions: having more than 8 million HKD cash