Hong Kong

The Securities and Futures Commission (SFC) is an independent statutory organization with the mandate of regulating the liquid assets market as well as the derivatives trading environment in Hong Kong. The SFC was established independently of the civil service structure in order to maintain its independence and to regulate one of the best corporate listing locations in the world. Through the management of the SFC, it serves as a financial watchdog and regulates the financial markets of the country without any connection to the government, but is accountable to the Financial Secretary. The SFC is one of the global standard setters and is represented by Hong Kong as a full voting member of IOSCO.

Securities and Futures Commission plays a pivotal role in regulating the investment environment of Hong Kong by licensing and overseeing financial intermediaries, which include brokers, investment banks, asset management companies, and credit-rating agencies. Strict market disclosures are enforced by the Commission; the application process for listing is also vetted by it along with the Hong Kong Exchanges and Clearing Limited (HKEX); moreover, daily trading activities are also monitored for any sign of insider trading, market manipulation or corporate fraud. The Securities and Futures Commission has strong enforcement powers and conducts searches, freezes any illicit property, and prosecutes any individual or corporate entity who violates the Securities and Futures Ordinance.