ENG-2005 — Page 110

80 Financial and Monetary Affairs

of the PRP are appointed by the Chief Executive. In June 2005, the Government published the PRP's fourth annual report, which concluded that the SFC had generally followed its internal procedures in handling cases under review.

Broadly speaking, the SFC's work involves licensing, supervision and monitoring of intermediaries; regulation of the public marketing of unit trusts, mutual funds and other collective investment products; regulation of takeovers, mergers and other corporate activities; listing regulation under the dual filing system for IPO applicants and issuers; supervision of markets including the exchanges and clearing houses; enforcement of securities laws and rules and investor education.

As at year-end, there were 25 210 licensed persons, including securities brokerage firms, futures dealers, and securities margin financiers, as well as their representatives, and 82 registered institutions, such as banks, engaging in regulated activities like dealing and advising on securities and futures.

The SFC considers investor education the first important step to investor protection. In 2005, the SFC launched various focused educational campaigns. To raise investors' awareness of analysts' potential conflicts of interest, the SFC produced a 10-episode radio programme, The Star Analysts' Fans Family. It also issued new brochures to help investors to protect themselves from the mis-selling of financial products. The SFC also stepped up its educational efforts for derivative warrants by enhancing its online educational resources and publishing a series of articles in newspapers. It also organised a story competition in which investors could share their experience of trading derivative warrants.

The SFC continued to organise outreach activities targeting different audiences. It held a series of workshops for vocational teachers and secondary school teachers of economics, commerce and related subjects as well as talks for secondary students. The SFC also expanded its collaboration with universities. The response to these activities was overwhelming 8 300 people attended the 72 sessions.

During 2005, the SFC distributed about a quarter of a million investor brochures written in plain language and VCDs through various channels. Topics featured included REITs, fees and charges on securities-related services and questions to ask about investment advisory services. It also contributed articles to newspapers to disseminate educational messages.

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Following the revamp in 2004, the content of the SFC's investor portal now renamed InvestEd with a new URL: www.invested.hk was further strengthened in 2005 with new online games on derivative warrants, hedge funds and IPO investing. The Alert List, which warns investors against boiler rooms, scam websites and phishing scams, was also enhanced with new user-friendly layout and search function. The monthly Dr Wise column continues to discuss key investment and regulatory issues.

In the meantime, the SFC remained active in external relations and international activities. In 2005, it signed Letters of Intent (LOIs) with the Securities and Exchange Commission of Sri Lanka, the Securities and Exchange Board of India, and the