Relief Letter Generator for Hong Kong

A Relief Letter is a formal document issued by Hong Kong's Securities and Futures Commission (SFC) that grants specific exemptions from regulatory requirements. When companies or financial institutions face unique circumstances that make strict compliance challenging, they can request this special permission to operate differently than standard rules would normally allow.

These letters help businesses navigate complex regulatory situations without compromising market integrity. The SFC carefully reviews each request, considering factors like investor protection and market stability before granting relief. Companies must typically demonstrate good cause and propose alternative compliance methods to receive this regulatory flexibility.

Consider applying for a Relief Letter when your business needs temporary exemption from SFC regulations due to exceptional circumstances. Common scenarios include corporate restructuring, innovative financial products that don't fit existing frameworks, or temporary operational constraints that make strict compliance impossible.

The key is to request relief early - ideally three months before you need the exemption. Your application must explain why standard compliance isn't feasible and outline alternative safeguards you'll put in place. Financial institutions often seek relief when launching new trading platforms or implementing novel investment strategies that push regulatory boundaries.

• Temporary Relief Letters: Granted for short-term exemptions during special circumstances like market disruptions or system upgrades
• Permanent Relief Letters: Issued for ongoing structural changes or innovative business models that require lasting regulatory flexibility
• Class Relief Letters: Cover multiple entities within the same industry facing similar regulatory challenges
• Conditional Relief Letters: Include specific requirements and safeguards that firms must maintain to keep their exemption valid
• Product-Specific Relief: Tailored for new financial products or services that don't fit existing regulatory frameworks

• Securities and Futures Commission: Reviews and issues Relief Letters, sets conditions, and monitors ongoing compliance
• Licensed Corporations: Financial institutions seeking regulatory exemptions for their business operations or new products
• Legal Counsel: Drafts applications and advises on regulatory requirements and alternative compliance measures
• Compliance Officers: Implements and monitors the conditions specified in Relief Letters within their organizations
• External Auditors: Verifies compliance with Relief Letter conditions during regular audits

• Business Case: Document the specific regulatory requirements you need relief from and why standard compliance isn't feasible
• Alternative Measures: Outline your proposed alternative compliance methods and risk management controls
• Supporting Evidence: Gather financial statements, operational procedures, and relevant business plans
• Timeline Details: Specify how long you need the relief and include implementation schedules
• Impact Analysis: Prepare data showing how the relief benefits your business without compromising market integrity
• Draft Review: Use our platform's template to ensure your Relief Letter includes all required elements and follows SFC guidelines

• Entity Details: Full legal name, license number, and registered address of the requesting organization
• Regulatory Context: Specific SFC rules or regulations from which relief is sought
• Relief Scope: Clear description of the exemption requested and its duration
• Alternative Measures: Detailed outline of proposed compliance alternatives and risk controls
• Conditions Section: Any specific requirements or ongoing obligations attached to the relief
• Declaration: Statement confirming all information provided is accurate and complete
• Signature Block: Authorized signatory details and execution date

A Relief Letter is often confused with an Exemption Letter, but they serve distinct purposes in Hong Kong's regulatory framework. While both involve regulatory flexibility, their scope, application, and legal implications differ significantly.

• Regulatory Authority: Relief Letters are specifically issued by the SFC for financial regulations, while Exemption Letters can come from various authorities for different regulatory requirements
• Scope and Duration: Relief Letters typically address complex financial compliance issues and can be temporary or permanent, whereas Exemption Letters usually cover simpler regulatory matters with fixed terms
• Application Process: Relief Letters require detailed alternative compliance proposals and risk management plans, while Exemption Letters often need only basic justification and documentation
• Monitoring Requirements: Relief Letters come with ongoing compliance obligations and regular reporting to the SFC, unlike Exemption Letters which usually require minimal follow-up