Baker McKenzie assisted Victory Securities Company Limited ("Victory Securities"), wholly owned subsidiary of Hong Kong Stock Exchange-listed Victory Securities (Holdings) Company Limited, in securing consent from the Hong Kong Securities and Futures Commission ("SFC") to provide virtual asset-related services in accordance with the "Joint circular on intermediaries’ virtual asset-related activities" issued by the SFC and the Hong Kong Monetary Authority on 28 January 2022 ("Joint Circular").
Following SFC consent, Victory Securities is now permitted to (i) provide virtual asset dealing services under an omnibus account arrangement; (ii) provide virtual asset dealing services by way of introducing eligible clients to licensed virtual asset platforms for direct trading; (iii) market and distribute virtual asset-related private funds to eligible clients; (iv) provide securities brokerage services to eligible clients with respect to virtual asset-related exchange traded funds (including exchange-traded virtual asset derivative funds); and (v) provide virtual asset advisory services. In providing the expanded scope of virtual asset-related services, Victory Securities will be subject to the “Terms and conditions for licensed corporations or registered institutions providing virtual asset dealing services under an omnibus account arrangement” and the “Terms and conditions for licensed corporations or registered institutions providing virtual asset advisory services”.
The Baker McKenzie team advising Victory Securities comprised virtual asset specialists Joy Lam, Ryan Chan and Samantha Lai.
"We are very pleased to have assisted Victory Securities in securing this groundbreaking consent from the regulator. This is the first consent granted by the SFC for the provision of the full spectrum of dealing and advisory activities set out in the Joint Circular and is a significant milestone that enables Victory Securities to expand its service offering comprehensively into virtual assets. For the virtual assets ecosystem more broadly, this consent is important because it not only paves the way for other forward thinking market participants to expand their service offerings into virtual assets dealing and advisory activities, it also affirms Hong Kong's place as a leading global hub in which a wide range of virtual asset related activities can be conducted in a robust and vibrant market with a clear regulatory perimeter for market participants," Joy Lam said.
Victory Securities is licensed by the SFC to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities) and Type 9 (asset management) regulated activities in Hong Kong. Over the past 50 years, it has received multiple awards in the Asia-Pacific region in recognition of its excellent business services in wealth management, asset management, securities and futures brokerage and capital markets.