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SFC – Securities and Futures Commission

The Securities and Futures Commission (SFC) is an independent regulatory body that monitors the securities and futures markets in Hong Kong.


The Securities and Futures Commission (SFC) is an independent regulatory body. The SFC was established in 1989. The aim of the regulator is to monitor the securities and futures markets in Hong Kong. The Securities and Futures Ordinance (SFO) and subsidiary legislation regulator are the bodies funding the SFC. The regulatory body is funded by the transaction charges and licensing costs.

The SFC is striving to consolidate and protect the honesty and reliability of Hong Kong’s securities and futures markets. Also it strives to create advantage for the investors and industry as a whole.

SFC – Securities and Futures Commission core tasks

Moreover, as the Securities and Futures Commission is a legal body. Its performance is managed and determined by the Securities and Futures Ordinance. The latter is defining the powers, roles and responsibilities of the SFC. Following on this, the regulatory objectives of the Hong Kong regulator include:

  • Develop and sustain the competitive, honest, efficient, and systematic securities and futures markets;
  • Support the public in understanding the securities and futures industry matters;
  • Assure the protection of the investors;
  • Reduce crime and fraud in the market;
  • Support the Government in monitoring the financial stability across Hong Kong.

SFC duties and tasks in other fields

In addition, the SFC is responsible for regulation of such entities, as brokers, investment advisers, fund managers and intermediaries, which are active in the following fields:

  • Affairs in Securities and Futures contracts
  • Leveraged Forex trading
  • Advising on securities, futures contracts and corporate finance
  • Providing automated trading services
  • Securities margin financing
  • Asset management and Credit rating services

The SFC performs certain activities in relation to the abovementioned entities. The regulator places licensing standards to assure the fit and suitability of all the market participants. Furthermore, the SFC approves the licenses and issues codes and frameworks to inform the sector about expected principles of conduct. Also, the Hong Kong regulator place financial resources requirements. Lastly, it observes licensees’ financial reliability and whether they follow the relevant regulatory codes and guidelines.