| Securities and Futures Commission | |
|---|---|
| 證券及期貨事務監察委員會 | |
| Agency overview | |
| Formed | May 1989 |
| Jurisdiction | Hong Kong Special Administrative Region of the People's Republic of China |
| Headquarters | Hong Kong |
| Agency executive | Eddy C. Fong, Chairman |
| Website | |
| http://www.sfc.hk | |
The Securities and Futures Commission (SFC) of Hong Kong is the independent statutory body charged with regulating the securities and futures markets in Hong Kong. The SFC is responsible 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 consider to be a branch of the government, it is run independently under the authorisation of the laws relating to Securities and Futures.[1]
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The SFC was created in 1989 in response to the stock market crash of October 1987.
In 1997 following the Asian financial crisis 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 served as chief executive officer of the SFC from 1998 until 2006, when he was replaced by Martin Wheatley. Wheatley announced his resignation from the position in December 2010.[2]
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, Office of the Commissioner of Insurance and the Mandatory Provident Fund Schemes Authority. The SFC is responsible for securities and futures markets including the Hong Kong Stock Exchange the seventh largest Stock Exchange in the world (See List of stock exchanges).
The SFC has a responsibility to maintain order and protect investors, it does this by carrying out the following tasks; [3]
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 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.
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.
The SFC is funded by levies on transactions conducted on the Stock Exchange of Hong Kong (SEHK) and the Hong Kong Futures Exchange (HKFE), as well as fees charged to market participants.