ENG-2019 — Page 96

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Financial and Monetary Affairs

policies to regulate the asset and wealth management industry and pursues initiatives that facilitate Hong Kong's development as a full-fledged international fund service centre.

Listings and takeovers - The SFC oversees listings and takeovers in Hong Kong, including the vetting of listing applications, disclosure requirements for listed companies, corporate conduct, the listing-related functions of the Stock Exchange of Hong Kong Limited (SEHK), and the merger, takeover, privatisation and share buy-back activities of public companies in Hong Kong.

Market infrastructure - The SFC supervises the Hong Kong Exchanges and Clearing Limited (HKEX)'s exchanges and clearing houses, authorises automated trading service providers, regulates share registrars and manages investor compensation funds.

Enforcement - The SFC takes firm and prompt action to combat misconduct and malpractice in the securities and futures markets. It disciplines licensed corporations through reprimands, licence suspensions or revocations, and monetary fines. It deals with market misconduct, such as insider dealing and market manipulation, by bringing cases to the Market Misconduct Tribunal' or initiating criminal proceedings. It can apply to the court for injunctive and remedial orders against wrongdoers in favour of victims.

Separately, the Investor Compensation Company Limited manages the Investor Compensation Fund under the SFC's supervision. The fund compensates investors who have suffered losses in certain listed securities or futures contracts as a result of a default by an intermediary licensed by or registered with the SFC or an authorised financial institution.

The Investor and Financial Education Council is a wholly owned SFC subsidiary. It provides financial education resources and programmes through its consumer education platform, the Chin Family, and leads the Hong Kong Financial Literacy Strategy to promote a conducive environment for stakeholders to deliver quality financial education.

Insurance Authority

The Insurance Authority (IA) is an independent insurance regulator established in 2015 under the Insurance Ordinance. Its principal function is to regulate and supervise the insurance industry to promote industry stability and protect existing and potential policyholders. It also works with regulators in other jurisdictions to perform group-wide supervision of three multinational insurance groups. Apart from supervising insurance companies since June 2017, the IA assumed direct regulation of insurance intermediaries in September 2019.

Mandatory Provident Fund Schemes Authority

The Mandatory Provident Fund Schemes Authority (MPFA), established under the Mandatory Provident Fund Schemes Ordinance, regulates and supervises the MPF System. It ensures compliance with MPF legislative requirements to protect the interests of scheme members. It monitors MPF trustees, investigates cases of non-compliance, conducts inspections and takes enforcement action. It arranges programmes to strengthen understanding of new

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

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