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Financial and Monetary Affairs

Securities and Futures Commission

As the statutory securities and futures regulator in Hong Kong, the SFC derives its statutory powers from the Securities and Futures Ordinance (SFO). The SFC's work can be divided into five areas: intermediaries, investment products, listing and takeovers, market infrastructure and trading, and enforcement.

Intermediaries - The SFC's licensing regime sets standards for industry practitioners seeking to be, and to remain, licensed. It supervises licensed corporations, including stock brokers, investment banks, futures and leveraged forex dealers, fund managers, investment advisers and credit rating agencies in Hong Kong, with a particular focus on their business conduct and financial soundness.

Investment products - The SFC supports the development of Hong Kong both as an asset management hub and a premier offshore RMB centre. While facilitating market growth and product innovation, the SFC continues to perform its gate-keeping functions in authorising investment products offered to the public and monitoring their compliance with disclosure. and other requirements.

Listing and takeovers - The SFC oversees the listing-related functions of the SEHK, mergers, takeovers and share repurchases of public companies. It monitors corporate disclosures under the statutory inside information disclosure regime and vets listing applications alongside the SEHK under the dual filing regime, in addition to granting approval for the creation of new listed products and enhancing listing rules. It also performs risk-based reviews of particular companies and broader thematic reviews of activities which may signal corporate misconduct.

Market infrastructure and trading - The SFC supervises the HKEx's exchanges and clearing houses, share registrars, the Investor Compensation Company Limited and automated trading services, including overseas exchanges and clearing houses operating in Hong Kong.

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Enforcement - The SFC takes firm and prompt action in combating misconduct and malpractice in the securities and futures markets in order to protect the investing public. It can discipline licensed intermediaries through reprimands, suspension or revocation of licences and imposition of fines. It can also deal with market misconduct cases, such as insider dealing and market manipulation, by criminal prosecution or bringing them directly to the Market Misconduct Tribunal1o. In addition, the SFC can apply to the court for injunctive and remedial orders against wrongdoers in favour of victims. Through criminal, administrative, compensatory and disciplinary actions, the SFC strives to protect the collective interests of the investing public and send strong deterrent messages to the markets.

The SFC's powers are subject to both internal controls and external scrutiny, designed to ensure fairness in its decision-making, observance of due process and proper use of its regulatory powers. Specified SFC decisions are subject to review by the Securities and Futures Appeals

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The MMT is an independent body established under the SFO, and is chaired by a judge or a former judge of the High Court who sits with two members.

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