![One Island East 201302](https://upload.wikimedia.org/wikipedia/commons/f/f2/One_Island_East_201302.jpg)
The Securities and Futures Commission (SFC) of
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
is the independent
statutory body
A statutory body or statutory authority is a body set up by law (statute) that is authorised to implement certain legislation on behalf of the relevant country or state, sometimes by being empowered or delegated to set rules (for example reg ...
charged with regulating the
securities
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
and
futures markets
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or ...
in Hong Kong. The SFC is responsible for fostering an orderly securities and futures markets, to protect investors and to help promote Hong Kong as an international
financial centre and a key financial market in China. Even though it is considered to be a branch of the government, it is run independently under the authorisation of the laws relating to
Securities
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
and
Futures
Futures may mean:
Finance
*Futures contract, a tradable financial derivatives contract
*Futures exchange, a financial market where futures contracts are traded
* ''Futures'' (magazine), an American finance magazine
Music
* ''Futures'' (album), a ...
.
The head office is in
One Island East
One Island East is a skyscraper in Taikoo Place, Quarry Bay, Hong Kong Island, Hong Kong.
Overview
The skyscraper is a commercial office building, rising 298.35 m (979 ft) and has 69 storeys plus two levels of basement. There is ...
in
Quarry Bay
Quarry Bay is an area beneath Mount Parker in the Eastern District of Hong Kong Island, in Hong Kong. The western portion of the area was also formerly known as Lai Chi (). Traditionally an industrial and residential area, the number of commer ...
.
History
The SFC was created in 1989 in response to the
stock market crash
A stock market crash is a sudden dramatic decline of stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especia ...
of 1987.
In 1997 following the
Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1 ...
, the regulatory framework was further improved.
A comprehensive Securities and Futures Ordinance (SFO) was implemented in 2003, which expanded the SFC's regulatory functions and powers.
Andrew Sheng
Tan Sri Andrew Sheng (born 1946) is Hong Kong-based Malaysian banker, academic and commentator. He started his career as an accountant and is now a distinguished fellow of Fung Global Institute, a global think tank based in Hong Kong. He served ...
served as chairman of the SFC from 1998 until 2005, when he was succeeded by
Martin Wheatley
Martin Wheatley is a British financier, formerly managing director of the Consumer and Markets Business Unit of the Financial Services Authority in the UK, and is the former CEO of the Financial Conduct Authority.
In London
Wheatley worked for t ...
. Wheatley first served as chairman, and became CEO in 2006 when the posts of chairman and CEO were segregated to further promote corporate governance. Eddy Fong was appointed non-executive chairman in 2006. Ashley Alder assumed the position of CEO in 2011 and Carlson Tong was appointed non-executive chairman in 2012.
Responsibilities
The SFC is one of four regulatory organisations that make up financial regulators in Hong Kong, one of the major financial centres in the world. The others are the
Hong Kong Monetary Authority
The Hong Kong Monetary Authority (HKMA) is Hong Kong's central bank, central banking institution. It is a government authority founded on 1 April 1993 when the Office of the Exchange Fund and the Office of the Commissioner of Banking merged. Th ...
, Insurance Authority and the Mandatory Provident Fund Schemes Authority. The SFC is responsible for securities and futures markets including the
Hong Kong Stock Exchange
The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...
, the seventh largest
stock exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
in the world (See
list of stock exchanges
This is a list of major stock exchanges. Those futures exchanges that also offer trading in securities besides trading in futures contracts are listed both here and in the list of futures exchanges.
There are sixteen stock exchanges in the world ...
).
The SFC has a responsibility to maintain order and protect investors, it does this by carrying out the following tasks:
*Setting and enforcing market regulations
*Licensing and supervising market participants such as brokers, investment advisers and fund managers
*Supervising market operators including exchanges, automated trading services and clearing houses
*Authorising offering documents of investment products to be offered to the public
*Overseeing corporate activities of listed companies under the Codes on Takeovers and Mergers and Share Repurchases
*Educating investors on markets, investment products and their risks
Structure
The SFC is an independent statutory body whose powers derive from the Securities and Futures Ordinance (SFO) legislation.
The SFC is made up of a board whose members are appointed by the
Chief Executive of Hong Kong
The Chief Executive of the Hong Kong Special Administrative Region is the representative of the Hong Kong Special Administrative Region and head of the Government of Hong Kong. The position was created to replace the office of governor of ...
for a fixed term, a majority of which must be independent Non-Executive Directors. The board is headed by the Chairman also appointed by the
Chief Executive of Hong Kong
The Chief Executive of the Hong Kong Special Administrative Region is the representative of the Hong Kong Special Administrative Region and head of the Government of Hong Kong. The position was created to replace the office of governor of ...
.
An executive committee led by a chief executive officer (CEO) reports to the board and the board chairman and he runs the agency on a day-to-day basis; this position was created in 2006.
The SFC is funded by levies on transactions conducted on the
Stock Exchange of Hong Kong
The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repo ...
(SEHK) and the
Hong Kong Futures Exchange
Hong Kong Futures Exchange (HKFE) is a futures exchange in Hong Kong. Established in 1976, it offered a variety of options and futures contracts, linked to stock market indices, stocks, short-term interest rates, and foreign exchange. HKFE is a s ...
(HKFE), as well as fees charged to market participants.
List of chairmen
# Robert John Richard Owen (1989–1992)
# Robert William Nottle (1992–1994)
#
Anthony Francis Neoh (1995–1998)
#
Andrew Sheng Len-tao (1998–2005)
#
Martin Wheatley
Martin Wheatley is a British financier, formerly managing director of the Consumer and Markets Business Unit of the Financial Services Authority in the UK, and is the former CEO of the Financial Conduct Authority.
In London
Wheatley worked for t ...
(2005–2006)
# Eddy Fong Ching (2006–2012)
# Carlson Tong Ka-shing (2012–2018)
# Tim Lui Tim-leung (2018–)
List of CEOs
''The position of CEO was created in 2006''
#
Martin Wheatley
Martin Wheatley is a British financier, formerly managing director of the Consumer and Markets Business Unit of the Financial Services Authority in the UK, and is the former CEO of the Financial Conduct Authority.
In London
Wheatley worked for t ...
(2006–2011)
# Ashley Ian Alder (2011–2022)
#
Julia Leung Fung-yee (2023–)
HKSI Licensing Examination
The Licensing Examination for Securities and Futures Intermediaries (LE), a practical and market-focused examination, was developed with the assistance of regulators, academics and practitioners drawn from across the financial services industry. Its delegated by the SFC and conducted by the Hong Kong Securities Institute.
Criticisms
The Hong Kong Securities and Investment Institute faces a lot of criticisms since the test were not checked or validated independently before implemented to the examinations. In addition to that, no formal appeal procedures or practices are in place to check and balances the legitimacy of such examinations. Discrepancies between different languages are commonplace with these examinations.
Candidates should be aware that neither SFC nor the Hong Kong Securities and Investment Institute (HKSI) endorses any study notes or practice questions.
See also
*
Securities commission
*
Financial Services and the Treasury Bureau
Financial Services and the Treasury Bureau (FSTB) is a part of the 15 policy bureaux for the Hong Kong Special Administrative Region. They are responsible for developing and executing government policy on finance and treasury. The agency w ...
*
Economy of Hong Kong
*
Hong Kong Monetary Authority
The Hong Kong Monetary Authority (HKMA) is Hong Kong's central bank, central banking institution. It is a government authority founded on 1 April 1993 when the Office of the Exchange Fund and the Office of the Commissioner of Banking merged. Th ...
References
External links
Official web site
{{authority control
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
Securities (finance)
Statutory bodies in Hong Kong
Hong Kong government departments and agencies