Securities and Futures Commission (SFC)

Basic Information

The Securities and Futures Commission (SFC) is the independent statutory body responsible for regulating Hong Kong’s securities and futures markets. Established in 1989, the SFC operates under the Securities and Futures Ordinance (SFO) to ensure market integrity, protect investors, and promote financial stability. Its official website (www.sfc.hk) provides regulatory guidelines, licensing information, enforcement actions, and investor education resources.

Historical Background

The SFC was established on May 1, 1989, under the Securities and Futures Commission Ordinance, consolidating regulatory oversight previously handled by multiple agencies. In 2003, the Securities and Futures Ordinance (SFO) came into effect, expanding the SFC’s powers to combat market misconduct, enhance corporate governance, and regulate financial intermediaries. Over the years, the SFC has evolved to address emerging risks, including fintech innovations and cross-border financial activities.

Legal Authority and Regulatory Framework

The SFC derives its authority from the Securities and Futures Ordinance (Cap. 571), which empowers it to:

License and supervise intermediaries (e.g., brokers, fund managers, investment advisors)
Regulate leveraged forex trading (Type 3 regulated activity)
Oversee listed companies and market operators (e.g., HKEX)
Investigate and prosecute market misconduct (e.g., insider trading, market manipulation)
Approve investment products for public offering

It collaborates with the Hong Kong Monetary Authority (HKMA) for banks conducting securities-related activities.

Key Responsibilities and Regulatory Scope

The SFC supervises a wide range of market participants and activities:

Intermediaries: Licensing and monitoring of brokers, asset managers, and corporate finance advisors
Investment Products: Reviewing prospectuses and approving retail investment products
Market Surveillance: Detecting and preventing market abuse and irregularities
Enforcement: Taking disciplinary actions against misconduct, including fines and license revocations
Investor Education: Enhancing public awareness of investment risks and rights

Comprehensive Contact Information

The SFC can be reached through multiple channels:

Address: Securities and Futures Commission, 54/F, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong
General Inquiries: [email protected]
Licensing Queries: [email protected]
Complaints: [email protected]
Phone: +852 2231 1222 (available in English, Cantonese, and Mandarin)
Fax: +852 2501 0375 (licensing), +852 2524 3718 (complaints)

How to Verify a Regulated Entity

To check if a firm is licensed by the SFC:

Visit the SFC’s Public Register
Search by company name (in Traditional Chinese) or license number
Review the firm’s regulated activities, license status, and any disciplinary history

Unlicensed entities can be checked via the Alert List.