The SFC confirms the licensing framework as it applies to private equity funds

The Hong Kong Securities and Futures Commission (“SFC”) has issued an FAQ relating to venture capital companies. A venture capital company that deals in or advises on private equity may not by itself attract a licensing requirement if the venture capital company deals in or advises on shares or debentures of a private company. This is because the definition of a private company under the Companies Ordinance is excluded from the definition of securities.