SFC Licensed Corporation Audit
Any business entity which carries on or holds itself out as carrying on a business in a regulated activity in Hong Kong is required to be licensed (the “Licensed Corporation”) or registered with the Securities and Futures Commission (the “SFC”).
Licensed Corporation must be compliant at all times all the provisions of the Securities and Futures Ordinance (the “SFO”), subsidiary legislation, codes and guidelines. In association with these requirements, regulated entities must file audited annual financial statements within four months of the financial year end to the SFC.
Accompanying with the audited annual financial statements, the Licensed Corporation shall cause the submission of business review management questionnaire, financial resources return, account disclosure document, compliance report and audit questionnaire.
We service the Licensed Corporation with smaller-to-medium size and larger size business activities. Auditing regulated activities could be complex, and we understand your business activities and your need to fulfil the regulatory requirements.

Cayman Fund Audit
Under existing rules (the Private Funds Bill (2020) and the Mutual Funds (Amendment) Bill (2020) on 7 February 2020), a fund registered with Cayman Islands Monetary Authority (“CIMA”) must submit to CIMA financial statements audited by a Cayman Approved Auditor within six months of the fund’s year end, along with the Fund Annual Return form. The Fund Annual Return and audited financial statements are filed with CIMA on the “REEFS” electronic filing system, by the Cayman Approved Auditor of the fund.

We work with our CIMA Approved Auditors, and can assist with audit, financial statement preparation and other related services. As your single point of contact, we stationed in Hong Kong and worked with your operation team in China and Hong Kong. You can access the technical knowledge and our global industry expert through our connection with other Cayman service providers, including law firms, fund administrators and independent directors.

Hong Kong OFC and LPF Audit:
It is a crucial part of the Hong Kong Government’s proactive policy strategy to strengthen the city’s competitiveness in the international asset management market. The open-ended fund companies (“OFC”) and the limited partnership fund (“LPF”) are now Hong Kong-domiciled fund structures.

OFC is an investment fund vehicle that is set up in the form of a company in Hong Kong, but with the flexibility for investors to trade the funds through creation and cancellation of shares, unlike the conventional restrictions under the Hong Kong Companies Ordinance regarding capital reduction and distribution out of capital.  Investors are allowed to subscribe for and redeem shares in the OFC and distributions can be paid out of net assets or capital. Other than the Securities and Futures Ordinance (“SFO”), Securities and Futures (Open-ended Fund Companies) Rules (“OFC Rules”) and the OFC Code issued by the Securities and Futures Commission (“OFC Code”), the instrument of incorporation (the key constitutive document) provides additional framework governing the OFC’s officers, custodian and the shareholders.

An LPF is a fund that is structured in the form of a limited partnership which are primarily designed for close-end funds and commonly used for the purpose of managing illiquid investments for the longer-term benefit of its investors. Unlike the Company structure for OFC, LPF must be constituted by one general partner who has unlimited liability in respect of the debts and liabilities of the fund, and at least one limited partner with limited liability.  A fund set up in the form of a limited partnership registered under the Limited Partnerships Ordinance (Cap. 37) may be registered as an LPF if it meets the eligibility requirements under the Ordinance.

Both the OFC and LPF require the appointment of a local auditor, proper custody arrangements for the assets and keeping of record. We are set to assist the OFC and LPF fulfilling these requirements as well as advising on the profit tax exemption under the unified tax exemption regime.

Crypto Fund Audit:
As digital assets sector continuously expand by the day, more and more crypto funds are entering into the market and requiring technical support for better reporting as these fund products are capturing the focus of both the investors and the regulators. Developing a reasonable audit approach along with documented procedures for valuation and other operational considerations are a must for any new market participants.

Emerald’s experience and expertise in digital asset space made our distinction from the market players. Our dedicated financial service team are set to support your crypto fund reporting. We leveraged our audit methodologies and techniques to validate the ownership by gathering proper audit evidence on the transactions and balances.