A Sign of Things to Come: Securities and Futures Trends Analysis - Part 1

June 15, 2015

Greater corporate and individual accountability for regulatory compliance is what the Securities & Futures Commission (SFC) mandates for the Hong Kong securities and futures market. Adopting a penal as well as a restorative approach, the SFC has made very good and innovative use of its extensive powers to hold corporations and individuals – particularly senor management – accountable for regulatory failings. Market participants – including licensees and individuals in senior management roles – need to be especially vigilant.

In a comprehensive report, which will be published in three parts, Dechert’s securities enforcement team in Asia, analyses the regulatory and enforcement activity within the Hong Kong securities and futures market in the five years since the global financial crash in 2008, and offers thought-provoking insights into where the SFC may direct its future regulatory and enforcement activities.

In this, the first of the reports, we present:

  • an overview of the SFC’s supervisory and enforcement activities over the review period;
  • regulatory and enforcement developments pertaining to intermediary misconduct and unlicensed activities – two of the SFC’s core enforcement programmes; and
  • studies of pivotal cases which highlight lessons learnt and practical tips for the future.

Subsequent reports will focus on the SFC’s other core enforcement programmes: corporate governance and disclosure, insider dealing and market manipulation.