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The Securities and Futures Commission (SFC) published today its 2012-13 annual report, themed Regulation for Quality Markets.
"Quality in regulation signifies commitment to upholding integrity and transparency in the way markets operate, in the way firms conduct their businesses, in the way listed companies govern themselves and communicate with investors, and in the way investors trade in our markets," said Mr Carlson Tong, Chairman.
In the past year, the SFC pursued a range of initiatives, including enhancing the initial public offering sponsor regime, establishing the new statutory disclosure regime for listed companies, reporting of short positions in stocks, updating the regulation for electronic trading, and enabling more product choices. Enforcement action continues to send a strong deterrent message and also aims to remediate harm done to investors by wrongdoers.
"There should be complete alignment between investor protection and market development," said Mr Ashley Alder, Chief Executive Officer, noting a false impression that these two elements are mutually incompatible. "Sustainable market development and independent, robust regulation to protect investors are complementary and inseparable," Mr Alder said.
Going forward, the SFC's many initiatives include a new over-the-counter derivatives regime, introducing an Investor Protection Bill to the Legislative Council, a comprehensive review of the professional investor regime and facilitating development of Hong Kong both as an asset management centre and a premier offshore renminbi centre.
The SFC continues to play an active role in global standard-setting, with Mr Alder chairing the Asia-Pacific Regional Committee of the International Organization of Securities Commissions from May 2013.
The newly launched Investor Education Centre now has a broad mandate covering the entire financial sector.
An online version of the annual report is available on the SFC’s website.
