Professional Investor (PI) Guidelines

What is a professional investor (PI)?

According to the Securities and Futures Ordinance, there are 3 categories of professional investors, namely:

• Institutional Professional Investor
• Corporate Professional Investor
• Individual Professional Investor

Institutional Professional Investors refer to

• Persons falling under paragraphs (a) to (i) of the definition of “professional investor” in section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance
• Such as recognized exchanges, recognized clearing houses, intermediaries, recognized financial institutions, authorized insurers, recognized collective investment schemes, mandatory provident fund schemes, occupational retirement schemes, governments, etc.

Corporate Professional Investors refer to

• Trust corporations, corporations, or partnerships falling under sections 4, 6, or 7 of the Securities and Futures (Professional Investor) Rules.

Individual Professional Investors refer to

• Individuals falling under section 5 of the Securities and Futures (Professional Investor) Rules.

What documents are required for PI Verification?

Proof of assets

• Include

Cash, bank deposits, stocks, funds, bonds, asset management plans, trust plans, cash portion of futures accounts

• Not include

Real estate certificates, futures, private company stocks, MPF, ORSO, insurance contracts (policy).

Institutional professional investors are not required to submit proof of assets

Corporate professional investor

• A trust corporation must have total assets of at least HKD 40 million (or its foreign currency equivalent);
• A corporation or partnership must have a portfolio of at least HKD 8 million (or its foreign currency equivalent)), or total assets of at least HKD 40 million (or its foreign currency equivalent).

Individual professional investor

• A portfolio of at least HKD 8 million (or its foreign currency equivalent)

When there is more than one account owner

• If the joint account holder is your spouse, please provide a marriage certificate as proof of your relationship. For accounts held with a spouse, it is considered that you hold 100% of the jointly held assets.
• If the joint account holds are not your spouse, we will deem that you hold an equal share of the jointly held assets, unless you provide a written agreement between the joint account holders specifying your individual share.

Type of certificate documents

• Bank statement / securities statement / trust certificate / proof of assets

Certificate must contain

• Issuing organization, and your name
• Total assets of at least HKD 8 million or its foreign currency equivalent (currency needs to be specified).

Certificate validity

1. Date of issue within one year
2. If multiple certificates are submitted, all certificates must have a date difference of 1 month or less.
3. Issuer

• A statement of account or a certificate issued by a custodian;
• A certificate issued by an auditor or a certificated public accountant;
• A public filing submitted by or on behalf of the trust corporation (whether on its own behalf or in respect of a trust of which it acts as a trustee), corporation, or partnership.

PI Accreditation Portal

Please go to Longbridge App - “Market” - “Fund” - “PI” for accreditation.

Risk Disclosure Regarding Professional Investor

Before you are accredited as an individual professional investor, you need to clearly understand the risks and consequences, especially concerning the exemption of Long Bridge from certain requirements of relevant regulations, including but not limited to the following obligations.

1. Upon successful application to become a professional investor, Long Bridge (HK) Limited can provide you with more investment products. However, such investment products may not be recognized and regulated by the Hong Kong Securities and Futures Commission, and therefore your investment in such products may carry certain risks. You are advised to seek professional advice from an independent third party before applying.

2. Upon becoming a professional investor, you acknowledge that Long Bridge (HK) Limited is exempt from the following obligation to

1. provide information regarding the identity and employment status of employees of Long Bridge (HK) Limited and other persons acting on behalf of Long Bridge (HK) Limited.
2. confirm with you the key points of the transaction.
3. provide you with the data files prescribed by the Stock Exchange of Hong Kong Limited regarding the Nasdaq-Amex Pilot Program.
4. provide you with any contract notes, statements of account, or receipts as required by the “Securities and Futures (Contract Notes, Statements of Account and Receipt) Rules”. Please note that it is not the case that Long Bridge (HK) Limited will cease to perform these obligations to you, but Long Bridge (HK) Limited has the right to be exempt from such obligations.

3. If you find that you no longer qualify as a professional investor, you must inform Long Bridge (HK) Limited immediately. You also have the right to cancel your professional investor status at any time by informing Long Bridge (HK) Limited.