Singapore License Full Agency Operation Details and Case Analysis

The Details and Practical Case Analysis of Full Custody Services with Singapore Licenses in the Hong Kong Market

In recent years, with the continuous opening of global financial markets and the rising demand for cross-border investments, more and more investors have started to pay attention to the financial licensing systems in different regions and their applications in cross-border business. Among them, Singapore licenses have gradually attracted attention in the Hong Kong stock market, especially under the full custody business model. The compliance, operational process, and practical cases of this model have become focal points for investors and financial institutions.

Full custody refers to the situation where investors completely entrust their account management rights to a third-party institution, including but not limited to stock trading, asset allocation, and risk management. This model is common in overseas investments, especially in regions with relatively relaxed regulations and mature market mechanisms.

Singapore, as an important financial center in the Asia-Pacific region, has a strict regulatory system for financial licenses by the Monetary Authority of Singapore MAS, but it also enjoys high international recognition. Financial institutions holding Singapore licenses can offer full custody services in the Hong Kong stock market, which has certain attractiveness and feasibility.

I. Compliance Analysis of Singapore Licenses in the Hong Kong Stock Market

According to the Financial Market Infrastructure Guidelines issued by the MAS in June 2025, institutions holding a Securities Dealer License SDL or Capital Markets Services License CMSL in Singapore can provide cross-border securities trading services to clients, provided they comply with relevant regulations. This means that if a Singapore-licensed institution wishes to offer full custody services in the Hong Kong market, it must ensure its business scope meets the regulatory requirements of both regions and pass appropriate compliance reviews.

For example, in March 2025, a Singapore-licensed broker, Starlink Capital, officially obtained the Type 1 Securities Trading License from the Hong Kong Securities and Futures Commission SFC and announced the launch of full custody services in Hong Kong. According to the company's disclosure, its service model mainly targets high-net-worth clients. Clients only need to submit funds and investment goals, while all trading decisions are executed by professional teams. This model reduces the operational barriers for individual investors to some extent, but also puts higher demands on the institution's risk control capabilities.

II. Operational Process and Risk Control of Full Custody Services

In practice, Singapore-licensed institutions conducting full custody services in the Hong Kong stock market usually go through the following key steps

1. Customer Qualification Review Institutions need to conduct KYC Know Your Customer and AML Anti-Money Laundering checks to ensure customers have the corresponding investment capability and risk tolerance.

2. Account Opening and Fund Custody Customers need to open an account at a designated bank and deposit funds into a regulated third-party custodian to ensure fund security.

3. Investment Strategy Development Based on the customer's financial status, risk preference, and investment goals, the institution will develop a personalized investment strategy.

4. Trade Execution and Monitoring When executing trades in the Hong Kong stock market, the institution needs to follow strict risk control mechanisms, such as stop-loss lines and position limits, to reduce risks brought by market fluctuations.

5. Regular Reports and Communication The institution needs to provide customers with regular investment reports, including profit status, portfolio structure, and market analysis, to enhance transparency.

Taking Starlink Capital as an example, its full custody products launched in 2025 include strict risk control measures, such as daily mark-to-market, weekly strategy reviews, and monthly client meetings. The company also introduced an AI-assisted decision-making system to monitor market trends in real time and adjust the investment portfolio accordingly.

III. Practical Case Analysis Full Custody Practices of Singapore-Licensed Institutions in the Hong Kong Stock Market

In July 2025, another Singapore-licensed institution, Credit Suisse Asia, announced on its official website that it had successfully completed a full custody transaction for a high-net-worth client from mainland China. The client purchased multiple Hong Kong-listed stocks, including Tencent, Meituan, and Alibaba, achieving an overall return of 12% within three months. This case shows that Singapore-licensed institutions have strong trading capabilities and market insights in the Hong Kong stock market.

It is worth noting that although the full custody model offers convenience to investors, it also carries certain risks. For example, in May 2025, an unlicensed foreign institution was investigated and fined by the Hong Kong SFC due to illegal operations that caused client losses. This reminds investors to prioritize licensed institutions when choosing full custody services and carefully review the contract terms to clarify responsibilities.

IV. Future Trends and Recommendations

With the development of financial technology and the improvement of regulatory policies, it is expected that more Singapore-licensed institutions will enter the Hong Kong full custody market in the future. At the same time, as the demand for professional wealth management services increases, this model is expected to become more widespread.

For investors, selecting the right full custody institution is crucial. It is recommended to evaluate based on the following aspects whether the institution holds legitimate financial licenses in Singapore and related countries; whether it has a good track record and customer reputation; whether it has a complete risk control system and transparent information disclosure mechanism; and whether it provides flexible investment strategies and personalized services.

In conclusion, Singapore-licensed institutions offering full custody services in the Hong Kong stock market represent an innovative attempt in cross-border financial services and a positive response to the diversified needs of investors. However, any investment involves risks, and investors should maintain rational judgment and make careful choices when enjoying the convenience.