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Financial and Monetary Affairs

Markets - The SFC supervises and monitors exchanges, clearing houses, authorised providers of automated trading services and approved share registrars. It also formulates policies to facilitate the continued development and competitiveness of the Hong Kong markets, including through enhancements to key market infrastructure and links with Mainland and international markets.

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 is an independent insurance regulator established under the Insurance Ordinance to regulate and supervise the insurance industry to promote sustainable industry development and protect 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 authority has assumed direct regulation of insurance intermediaries since September 2019.

Mandatory Provident Fund Schemes Authority

The Mandatory Provident Fund Schemes Authority, established under the Mandatory Provident Fund Schemes Ordinance, regulates the Mandatory Provident Fund (MPF) System and ensures compliance with the law to protect the interests of scheme members. It supervises MPF trustees and intermediaries, investigates cases of non-compliance and takes enforcement action. It arranges programmes to strengthen understanding of MPF investments and new developments in the MPF System. The authority is also the Registrar of Occupational Retirement Schemes.

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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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