Finance and securities
Hong Kong, as a world financial centre, plays an indispensable role in the global financial market. Activities in relation to finance and securities have formed a crucial part of Hong Kong’s economy. It is also a centre for fund raising where global transactions involving companies from different sectors and financial intermediaries take place.
Our legal service in relation to financial services law is an important aspect in our practice. We have a long history of advising global and local issuers, underwriters, investment banks, financial intermediaries and funds on financial services regulations and securities transactions. Over the years, we work on a regular basis with the key regulators and have built good relationship with them and are in the best position to advise our client on the local practice and custom in the relevant industries.
In view of the fast changing and dynamic financial market, we always keep ourselves updated on the latest development on the international and local regulatory changes. We review consultation papers issued by the regulators and often act for a number of market practitioners in making submissions to the regulators in response to the proposed changes.
We have an in-depth understanding on financial transactions relating to regulatory, licensing, investment products, compliance, disclosure and MPF/retirement schemes. We work with investment managers, in-house counsel, and financial advisers on formulating transactions under the legal and regulatory framework and provide them with the most up-to-date information on general compliance, proposed changes in laws and regulations and regulatory trends.
Please click here for further details on our services in relation to financial services law for financial institutions and securities companies and here in relation to our practice in relation to funds.
Please click here if you wish to know more about our practice in relation to advice on regulatory and securities matters, and here for a full list of our knowhow and information on Securities and Futures Commission regulatory matters.
Codes and Guidelines published by the Securities and Futures Commission
The Securities and Futures Commission (the “SFC”) was established in 1989 as an independent statutory regulator of the securities and futures market in Hong Kong with a view to promoting fair, orderly and transparent securities and futures market operations, enhancing protection of investors and promoting Hong Kong as an international financial centre. The powers of the Securities and Futures Commission are derived from the Securities and Futures Ordinance (the “SFO”) and its subsidiary legislation.
The Securities and Futures Commission has a general power under section 399 of the SFO to issue codes and guidelines. Although the codes and guidelines issued by the Securities and Futures Commission are not subsidiary legislation of the SFO and the breach of such codes and guidelines does not by itself render a person liable to any judicial or other proceedings, the intermediaries and their representatives who are in breach of such codes and guidelines may face disciplinary actions.
Codes issued by the Securities and Futures Commission include:
- Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission
- Code of Conduct for Persons Providing Credit Rating Services
- Code of Conduct for Share Registrars
- Code on Immigration-Linked Investment Schemes
- Code on Investment-Linked Assurance Schemes
- Code on Pooled Retirement Funds
- Code on Real Estate Investment Trusts
- Codes on Takeovers and Mergers and Share Buy-backs
- Corporate Finance Adviser Code of Conduct
- Code on Unit Trusts and Mutual Funds
- Fund Manager Code of Conduct
- SFC Code on MPF Products
- SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products.
Guidelines issued by the Securities and Futures Commission include, inter alia:
- Advertising Guidelines Applicable to Collective Investment Schemes Authorised under the Product Codes
- Core Operational and Financial Risk Management Controls for Over-the-Counter Derivatives Activities of Persons Licensed by or Registered with the Securities and Futures Commission
- Debt Collection Guidelines for Licensed Corporations
- Fit and Proper Guidelines
- Guideline on Anti-Money Laundering and Counter-Terrorist Financing
- Guidelines for the Approval of Corporations as Approved Lending Agents
- Guidelines for the Exemption of Listed Companies and Other Persons from Part XV of the Securities and Futures Ordinance (Disclosure of Interests).