Hong Kong SFC Proposes Changes to the Securities and Futures Ordinance

The Securities and Futures Commission (SFC) today launched a two-month consultation on proposed enforcement-related amendments to the Securities and Futures Ordinance (SFO) to enable it to take more effective enforcement action.

The amendments would broaden the scope of some SFO provisions to expand the basis for the SFC to apply for remedial and other orders against a regulated person under section 213. They would also enable the SFC to address insider dealing perpetrated in Hong Kong involving overseas-listed securities and insider dealing involving Hong Kong-listed securities perpetrated elsewhere.

Other amendments include clarifying an exemption in section 103(3)(k) of the SFO such that, unless authorised by the SFC, advertisements of investment products which are intended to be sold only to professional investors may only be issued to professional investors who have been identified in advance as such by an intermediary through its know-your-client and related procedures.

"Effective enforcement is essential to safeguard the integrity of Hong Kong's financial markets,"said Mr Ashley Alder, the SFC's Chief Executive Officer."We review our enabling legislation from time to time to ensure that the SFC has the right regulatory tools to protect the interests of the investing public and uphold the quality of our markets."