Competence requirements for advising on corporate finance - Key features and criteria of Temp LR and ITP

Sep 26, 2026

Uploaded by Liam

Competence requirements for advising on corporate finance cover additional examination obligations for individuals who undertake sponsor work for IPOs or advise on transactions within the Takeovers and Mergers framework, as well as share buy-backs under the relevant Codes. It explains exam examples for mainland and overseas corporate teams relocating staff to Hong Kong. The document then contrasts Temp LR and ITP, including allowable licensed roles, RA types that can be conducted, licence and restriction periods, retail-client restrictions, and overseas-group conditions, plus associated continuous professional training expectations.

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Key features and criteria of a Temp LR and an ITP

Examples of Temp LR and ITP

General competence requirements

Competence requirements for advising on corporate finance There are other examination requirements4 that apply to those that conduct sponsor work for initial public offerings (IPO) or advise on transactions falling within the ambit of the Codes on Takeovers and Mergersand Share Buy-backs (Codes on Takeovers) under RA 6 (advising on corporate finance) . Example 3 – A Mainland China financial group intends to send Mr C from its Beijing office to work for its Hong Kong office to assist with two corporate finance projects for three weeks. Mr C may choose to apply to be an RA 6 Temp LR or ITP. If he needs to assist in IPO sponsor works or advise on a Codes on Takeovers transaction, he may also need to pass the relevant regulatory examinations. 4 Hong Kong Securities and Investment Institute’s Licensing Examination for Securities and Futures Intermediaries (HKSI LE) Paper 16 for engaging in sponsor work and HKSI LE Paper 17 for advising on a Codes on Takeovers transaction. See the Guidelines on Competence for details. ~~ ~~ 4 ~~ ~~ Key features and criteria of a Temp LR and an ITP: | |

Temp LR |
ITP
Licensed
representative only All RAs
Yes
Continuous
Not more than 30 days in total within a calendar year

No | | --- | --- | --- | | Licensed role | Licensed
representative only | | | RAs that can
be conducted | Most RAs1 | | | In Hong Kong,
only act for the
accredited LC | Yes2 | | | Licence
period | Specified in the licensing condition | | | Restrictions on licence period | Not more than three months; and not more than six months in total within 24 months | | | Restrictions on serving retail clients | No, unless the accredited LC is not allowed to serve retail clients | | | From overseas
group company | Yes, the individuals should be carrying on overseas a similar regulated activity for the regulated overseas group company | | | Required to
be regulated overseas | Yes3 | | | Continuous professional
training (CPT)
requirement | No | | 1 Except RAs 3 (leveraged foreign exchange trading), 7 (providing automated trading services), 8 (securities margin financing) and 9 (asset management) . See the Licensing Handbook for details. 2 See the Licensing Handbook for details about Temp LR accredited to a temporary LC. 3 If not directly authorised by the overseas regulatory body, the individuals can instead provide certain specific confirmations that they are subject to the overseas regulatory body’s oversight. 2 Examples of Temp LR and ITP | Example 1 – An international asset management group plans to arrange Ms A from its New York office to visit its Hong Kong office. She will participate in investment-decision making meetings of a fund for its Hong Kong office. She will need to make a few trips to the Hong Kong office for two days each to attend these meetings. As Ms A will require a licence to conduct RA 9 and will make multiple visits to Hong Kong, it would be more appropriate for her to apply tobe an ITP. | | --- | | Example 2 – Ms B from the Paris office of a global financial group plans to visit its Hong Kong office to help distribute a newly issued bond in Hong Kong. She will only need to visit Hong Kong for one week for this project. As Ms B requires a licence to conduct RA 1 (dealing in securities) and will need to visit Hong Kong only once, she can consider applying to be a Temp LR. | General competence requirements Whilst applicants for Temp LR or ITP have to satisfy the same competence requirements as normal licensed representatives, they may enjoy certain exemptions from examinations as briefly set out below: ~~ ~~ 3 ~~ ~~

FAQs

Who may need to take additional examinations under RA 6 for corporate finance advice?

Individuals conducting sponsor work for IPOs or advising on Takeovers and Mergers and share buy-backs transactions may need to pass relevant regulatory examinations.

What is one key difference between Temp LR and ITP in licence duration or restrictions?

Temp LR licence duration is specified in the licensing condition, while ITP is restricted by overall licence period limits within the stated timeframes.

When is it more appropriate to apply for an ITP instead of a Temp LR in the examples provided?

If an individual requires a licence to conduct RA 9 and will make multiple visits to Hong Kong, the document indicates applying to be an ITP is more appropriate.

Sep 26, 2026

Uploaded by Liam