The Securities and Futures Commission (SFC) today published consultation conclusions on proposed amendments to enforcement-related provisions of the Securities and Futures Ordinance (SFO) (Note 1).
The SFC will proceed with the proposal to broaden the scope of the SFO’s insider dealing provisions. The scope of the insider dealing provisions of the SFO will be broadened to cover: (i) insider dealing perpetrated in Hong Kong with respect to securities listed on overseas stock markets or their derivatives; and (ii) insider dealing perpetrated outside of Hong Kong, if it involves any securities listed on a recognised stock market, ie, a stock market operated by The Stock Exchange of Hong Kong Limited, or their derivatives. The industry will have the opportunity to review the draft amendments during the legislative process.
Considering the complex implementation issues raised by the respondents to the consultation, the SFC concluded that, pending further review, it will put on hold the other two proposed amendments, which concern the professional investor exemption and injunctions and other orders. However, the SFC will continue to monitor market developments and consider a full range of options to ensure investors are adequately protected. Such options may include enhancing the SFC’s disciplinary powers and other parts of the legal and regulatory framework.
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Note:
The consultation began on 10 June 2022 and ended on 12 August 2022. The SFC received 27 written submissions, including from industry associations, law firms, professional bodies and individuals.
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