We regulate How we do it

Licensed corporations and individuals carrying out the following regulated activities:

  • Type 1: Dealing in securities
  • Type 2: Dealing in futures contracts
  • Type 3: Leveraged foreign exchange trading
  • Type 4: Advising on securities
  • Type 5: Advising on futures contracts
  • Type 6: Advising on corporate finance
  • Type 7: Providing automated trading services
  • Type 8: Securities margin financing
  • Type 9: Asset management
  • Type 10: Providing credit rating services
    • Set licensing standards to ensure that all practitioners are fit and proper
    • Approve licences and maintain a public register of licensees
    • Issue codes and guidelines to inform the industry of its expected standard of conduct
    • Monitor licensees' financial soundness and compliance with ordinance, codes, guidelines, rules and regulations
    • Handle misconduct complaints against licensees
    • Investigate and take action against misconduct

The paper entitled “Regulatory Framework for Intermediaries" outlines the role we play, the approach we take, as well as our underlying philosophy. The paper “Approach to Supervision of Intermediaries” focuses on the detailed processes underpinning our supervision of intermediaries.

Investment products offered to the public

  • Set standards for the authorisation and regulation of investment products
  • Authorise investment products offered to the public and their promotion (including advertisements and marketing materials)
Listed companies
  • Approve changes to the Listing Rules
  • Monitor announcements and vet listing application materials under the Dual Filing regime
  • Administer the Codes on Takeovers and Mergers and Share Repurchases
  • Consider requests for exemptions from prospectus requirements under the Companies Ordinance
  • Enquire into listed companies' suspected prejudicial or fraudulent transactions or provision of false or misleading information to the public
Hong Kong Exchanges and Clearing Limited (HKEx)
  • Oversee the performance of its role as the frontline regulator of listingrelated matters
  • Approve the creation of new markets, new products and changes to its rules and regulations
  • Monitor HKEx's own compliance with the Listing Rules
  • Monitor the trading of shares, options and futures on its markets
  • Oversee its systems and technology
Approved share registrars
  • Approve the Federation of Share Registrars as an association whose members shall be approved share registrars
  • Require approved share registrars to comply with the requirements of the Code of Conduct for Share Registrars
Investor Compensation Company Limited (ICC)
  • Recognise the ICC as an independent compensation company
  • Approve the rules and any amendment of rules of the ICC
  • Require the ICC to prepare and regularly submit financial statements, auditors' report and other documents to the SFC
All participants in trading activities
  • Monitor unusual market movements and direct trade suspension of related stocks to maintain an informed and orderly market
  • Investigate and take action against market misconduct and other breaches of the law

Source: sfc.hk