The Securities and Futures Commission (SFC) today published its Annual Report 2016-17 summarising and providing key statistics on its work during the year. The report outlines the SFC’s current strategic priorities and approach to address the challenges of regulating more complex and interconnected markets.

The report also provides details of the SFC’s enforcement efforts and its inspections of intermediaries, as well as regulatory enhancements including its recent guidance on listings on the Growth Enterprise Market, a new initiative to clarify licensed firms’ senior management accountability and an ongoing project to enhance the regulation of the asset management industry as Hong Kong develops its positioning as a global financial centre.

“To address new challenges that cut across all of our regulatory functions, we have adopted a ‘One SFC’ approach, introducing organisational changes and cross-divisional teams to deploy our existing resources and expertise more effectively,” said Mr Carlson Tong, the SFC’s Chairman.

“Earlier, more targeted intervention helps minimise damage to our markets and irreparable harm to affected investors,” noted Mr Ashley Alder, the SFC’s Chief Executive Officer. “We pay particular attention to those problems which pose the most significant or systemic risks.”

The SFC contributed to Hong Kong’s reputation as a key influencer of global regulatory standards through its chairmanship of the Board of the International Organization of Securities Commissions, which began in May 2016.

Other highlights of the SFC’s operations featured in the report:

  • The number of licensees and registrants increased to 42,872 while the number of licensed corporations rose to 2,484 – both were record highs since 2003
  • It authorised 202 collective investment schemes and 100 unlisted structured investment products for public offering
  • It reviewed 245 listing applications under the dual filing regime and supervised 494 takeovers-related transactions and applications
  • It conducted 312 risk-based on-site inspections of intermediaries
  • It approved 11 applications from overseas regulated exchanges, clearing houses and electronic trading facilities to provide automated trading services
  • It made 8,960 requests for trading and account records from intermediaries as a result of surveillance of untoward price and turnover movements
  • It took disciplinary action against 54 licensed corporations and individuals with total fines amounting to $93 million

An online version of the Annual Report is available on the SFC’s website.

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