Securities and Futures Commission (“SFC”) in Hong Kong
Hong KongThe SFC regulates Hong Kong's securities and futures markets. One of the SFC’s regulatory objectives is to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry. The SFC’s scope of work includes, among other things, licensing and supervising intermediaries that conduct activities under its regulatory responsibility.
Innovation and technological advancement have transformed the financial landscape. The SFC takes a facilitative approach to innovation where it is conducive to market efficiency and investor experience. The aim is to ensure the SFC’s regulations remain effective as new technologies are introduced and any risks to investors or financial stability are properly managed.
Geographical Jurisdiction
Hong KongThe SFC regulates Hong Kong's securities and futures markets. Those subject to the SFC’s regulatory regime include firms and individuals which carry on in Hong Kong a business in a “regulated activity” as defined under the Securities and Futures Ordinance (“SFO”). Please click here for a brief overview of the different types of “regulated activities”.
✓ Engagement with innovators and/or other third parties (e.g. academics, consultants and other organisations)
Focus Area
- The proposed activity must constitute a regulated activity under the SFO falling within the SFC’s regulatory remit.
- The firm must intend to carry on a business in the regulated activity in Hong Kong.
- The firm must be a company incorporated in Hong Kong.
- The firm must first apply for and obtain the appropriate licence under the SFO before engaging in the business in Hong Kong. Application should be made by completing the relevant prescribed application forms which can be located here. Under the SFO, it is an offence to carry on, or hold oneself out as carrying on, a business in a regulated activity without the appropriate licence. The SFC therefore has no power to grant “trial testing” before any licence is obtained.
- The firm must comply with the applicable licensing requirements, including the financial resources requirements. For information on the SFC’s licensing requirements and application process, please refer to the SFC’s Licensing Handbook.
- For information on the SFC’s Regulatory Sandbox, please click here
