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The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) recently held the fifth regular high-level meeting on enforcement cooperation since the establishment of the enforcement cooperation mechanism under Stock Connect.
Discussion at the latest high-level meeting held in Xiamen included enhancing the implementation of the “Memorandum of Understanding on Strengthening Regulatory and Enforcement Cooperation under the Mainland-Hong Kong Stock Connect” (MoU), improving efficiency of cross-boundary enforcement cooperation and maintaining the healthy operation of the capital markets and protection of the interests of investors in Hong Kong and the Mainland.
Apart from updating each another on their respective enforcement work and significant progress made during the year, there were in-depth discussions on various topics concerning cross-boundary enforcement cooperation, including:
- reviewing the operation of the information notification mechanism for market supervision and cross-boundary enforcement investigation assistance since the launch of Stock Connect;
- discussing enhancements of policies and measures for improving cross-boundary enforcement assistance;
- updating each other on progress made in the investigations of major cases;
- sharing of experience in evidence collection and handling; and
- discussing enhancements to staff exchange and joint training arrangements.
The SFC and the CSRC also jointly organised a case study training event. This is the second event of its kind following the last one held in Xi’an in November 2016 which focused on market manipulation cases. More than 30 enforcement officers from the SFC and over 70 key investigators from the CSRC shared their investigation approaches, strategies and experiences in the investigation of cases concerning breach of disclosure rules, fraudulent offerings and market manipulation. Enforcement experts from the US Securities and Exchange Commission were also invited to share the latest developments in enforcement work in the US.
Since the beginning of the year, the SFC and the CSRC have, pursuant to the IOSCO Multilateral Memorandum of Understanding and the MoU, cooperated extensively on cross-boundary enforcement to ensure the orderly operation of markets and protection of investors in Hong Kong and the Mainland.
Mr Thomas Atkinson, the SFC’s Executive Director of Enforcement, said: “After years of hard work, the enforcement units of the SFC and the CSRC have become strong and trusted partners. We appreciate the support and cooperation of the CSRC. Our success in cross-boundary cooperation reflects a common regulatory philosophy based on strict adherence to procedural fairness.”
"Going forward, we will continue to extend and deepen our cooperation with the CSRC to ensure the stable development of our capital markets," Mr Atkinson added.
