Hong Kong Securities and Futures Commission

From MarketsWiki
Jump to: navigation, search
ADMIS-logo-200px.jpg
Securities and Futures Commission
SFClogo.gif
Founded 1989
Headquarters Hong Kong
Key People Tim Leung, Chairman; Ashley Alder, CEO
Website www.hksfc.org.hk

The Securities and Futures Commission (SFC) is an independent non-governmental statutory body responsible for regulating the securities and futures markets in Hong Kong.[1]

History

Until the mid-1970s, stock and commodities markets in Hong Kong were largely unregulated.[2] After the stock market crash of 1973-1974, the Government intervened and enacted legislation that established a regulatory structure that was administered by two part-time Commissions.

This structure remained largely unchanged for over a decade, during which time there was rapid change in the securities and futures markets, both internationally and in Hong Kong.

In 1987, deficiencies in the structure were made apparent by the October crash, which resulted in the closure of both the Hong Kong stock and stock index futures markets for four days. In the aftermath of the crash, a six-member Securities Review Committee, chaired by Ian Hay Davison, was created to examine Hong Kong's regulatory structure and recommend improvements that would minimize the chances of a repeat of the disruption and chaos of October 1987.

In May 1988, the Committee released its recommendation, which was that the existing structure be replaced with a single statutory body outside the civil service, headed and staffed by full-time professional regulators and funded primarily by the market. Such a body would have broad investigative and disciplinary powers to enable it to perform its regulatory functions effectively.

In May 1989, following the enactment of the Securities and Futures Commission Ordinance (SFCO), the SFC was born.

In April 2003, the SFCO and nine other securities and futures-related ordinances were consolidated into the Securities and Futures Ordinance (SFO).

In August 2001, Ashley Alder was named CEO of the SFC, effective October 1, 2011.[3][4]

Products and Services

The Securities and Futures Commission's statutory regulatory objectives as set out in the Securities and Futures Ordinance are:

  • To maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry
  • To promote understanding by the public of the operation and functioning of the securities and futures industry
  • To provide protection for members of the public investing in or holding financial products
  • To minimize crime and misconduct in the securities and futures industry
  • To reduce systemic risks in the securities and futures industry
  • To assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate steps in relation to the securities and futures industry.

Key People

References

  1. Introducing the SFC. Securities and Futures Commission.
  2. Historical Background. Securities and Futures Commission.
  3. SFC welcomes new Chief Executive Officer. SFC.
  4. HK Government Names Ashley Alder As CEO Of Securities Regulator. WSJ.