Guide to Professional Investor

Professional investors (PIs) are a specific category of investors defined under Hong Kong Securities and Futures Ordinance, classified into institutional, corporate, and individual PIs. Upon PI certification, investors gain access to products with higher risks or not authorized by Hong Kong Securities and Futures Commission (SFC), but securities firms are exempt from certain information disclosure and compliance obligations. Below is a detailed introduction to PIs.

1. Definition of PIs

Under Hong Kong Securities and Futures Ordinance, PIs include:

• Institutional PIs
• Corporate PIs
• Individual PIs

Institutional PIs

• Entities referred to in paragraphs (a) to (i) of the definition of "professional investor" in Section 1, Part 1, Schedule 1 of the Securities and Futures Ordinance.
• For example, recognized exchanges and clearing houses, intermediaries, authorized financial institutions, insurers, and collective investment schemes, registered Mandatory Provident Fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) schemes, and governments.

Corporate PIs

• Trust corporations, corporations, or partnerships referred to in Sections 4, 6, and 7 of Securities and Futures (Professional Investors) Rules.

Individual PIs

• Individuals specified in Section 5 of Securities and Futures (Professional Investors) Rules.

2. Materials required for PI certification

Asset proof documents

• Includes cash, bank deposits, stocks, funds, bonds, asset management plans, trust plans, and cash portions of futures accounts.
• Excludes real estate proof, futures, private company shares, MPF schemes, ORSO schemes, and insurance contracts (policies).

Note: Institutional PIs are not required to submit asset proof documents.

Corporate PIs

• A trust corporation must hold total assets of more than HKD 40 million (or equivalent foreign currency).
• A corporation or partnership must hold an investment portfolio of more than HKD 8 million (or equivalent foreign currency), or total assets of more than HKD 40 million (or equivalent foreign currency).

Individual PIs

• An investment portfolio of more than HKD 8 million (or equivalent foreign currency).

Joint account holdings

• If you have a joint account with one or more persons other than your spouse, your share of a portfolio in the joint account is an equal share of the portfolio, unless you provide a written agreement among account holders specifying your share.
• If the joint account holder is your spouse, please provide marriage or birth certificates as proof of relationship. For a portfolio on a joint account with your spouse, 100% of the portfolio is considered held by you.

Proof document types

• Bank statements/Securities statements/Trust proof/Asset proof

Proof must include:

• Issuing institution and your name.
• Assets with a total value exceeding HKD 8 million or equivalent foreign currency (currency must be specified).

Validity of the proof

• Date of issuance within one year.
• If multiple proof documents are submitted, the difference in date of issuance between all documents must be within 1 month.
• Issuer
  • Account statements or certificates issued by custodians.
  • Certificates issued by auditors or accountants.
  • Public filings submitted by or on behalf of the trust corporation (for itself or as a trustee), individual, corporation, or partnership.

3. PI certification entry

You can go to the Longbridge App > Market > Fund > More > PI for certification.

• Please upload the proof in PDF format. Submitting other formats may increase the review time or affect the review result. 
• The document must show the entire content clearly and completely.

4. Risk disclosure for PIs

Before being certified as an individual PI, you must fully understand its risks and consequences, particularly that Long Bridge (HK) Limited (hereinafter referred to as Longbridge) is exempt from certain requirements under relevant regulations, including but not limited to the following obligations:

(1) After you become a PI, Longbridge may provide you with access to a broader range of investment products. However, such products may not be authorized by SFC and are not regulated by SFC. Investing in these products carries inherent risks. It is recommended that you seek independent professional advice before applying to become a PI.

(2) After you become a PI, you acknowledge that Longbridge may be exempt from the following obligations:

• Providing information about the identity and employment status of Longbridge employees and other persons acting on behalf of Longbridge.
• Confirming key details of transactions with you.
• Providing data files required by the Stock Exchange of Hong Kong Limited regarding the Nasdaq-Amex Pilot Program.
• Delivering any contract notes, statements of account, or receipts as required under the Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules. Please note that Longbridge may continue to fulfill these obligations but reserves the right to be exempt from doing so.

(3) If you find that you no longer meet the qualifications of a PI, you must immediately inform Longbridge. You also have the right to cancel your PI status at any time by notifying Longbridge.

Key takeaways:

• PI eligibility:
  • Institutions: banks, insurance companies, governments, etc. (no asset requirements)
  • Corporations: must hold total assets of more than HKD 40 million (or equivalent foreign currency), or an investment portfolio of more than HKD 8 million (or equivalent foreign currency).
  • Individuals: must hold an investment portfolio of more than HKD 8 million (or equivalent foreign currency).
• Certification materials:
  • Valid documents: bank statements/securities statements/trust proof/asset proof issued within 1 year
  • Joint account: A marriage certificate is required for your joint account with your spouse (assets treated as 100% held); a share agreement is required for your joint account with persons other than your spouse.
• Certification path: Longbridge App > Market > Fund > More > PI.
• Risks and exemptions
  • Access to high-risk unauthorized products (securities firms no longer provide mandatory disclosures such as transaction confirmations or statements).
  • You must actively report if your assets fall below requirements. PI status can be canceled at any time.

Disclosure

This article is for reference only and does not constitute any investment advice.