The Securities and Futures Commission (SFC) Annual Report 2013-14, published today, underlines the SFC’s core mandate to safeguard market quality.
During the past year, the SFC pursued a more structured and proactive role as a regulator of listed companies.
"We aim to be far more active in influencing corporate conduct. We cannot emphasise enough that ethics and business integrity are key values underpinning the quality of our markets," said Mr Carlson Tong, the SFC’s Chairman.
The SFC is also reviewing its overall approach to the regulation of market intermediaries following the combination of its licensing and supervision departments within a new Intermediaries Division. The division is responsible for licensing and supervising about 39,000 corporations and individuals.
"We constantly review and enhance the regulatory regime in response to market trends and evolving international standards," said Mr Ashley Alder, the SFC’s Chief Executive Officer. "Sustainable market development cannot be separated from independent and robust regulation, nor can it be achieved by lowering standards," he added.
Other highlights of the SFC’s operations recounted in the report:
- over 2,500 Hong Kong and overseas investors compensated in three enforcement cases
- 188 listing applications received, a rise of 52% year-on-year
- 296 risk-based inspections of licensed corporations conducted
- around 2,500 SFC-authorized collective investment schemes on offer to the public
The SFC’s key continuing initiatives include the over-the-counter (OTC) derivatives regulatory framework, an enhanced supervision framework for Hong Kong Exchanges and Clearing Limited and the mutual stock market access programme between Hong Kong and Shanghai, expected to be launched later this year.
An online version of the annual report is available on the SFC’s website.