The Securities and Futures Commission (SFC) has announced the conclusion of its consultation on proposed amendments to the Securities and Futures Ordinance (SFO) regarding enforcement-related provisions. The SFC has decided to move forward with expanding the scope of the SFO’s insider dealing provisions. This expansion will encompass insider trading in Hong Kong involving securities listed on overseas stock markets or their derivatives, as well as insider trading outside of Hong Kong if it involves securities listed on recognized stock markets, i.e., a stock market operated by The Stock Exchange of Hong Kong Limited, or their derivatives. The industry will have an opportunity to review the draft amendments during the legislative process. However, due to the complexity of implementation issues raised in the consultation, the SFC has decided to defer the other two proposed amendments concerning the professional investor exemption and injunctions and other orders. Nonetheless, the SFC remains committed to monitoring market developments and considering a range of options to ensure sufficient investor protection, which may include strengthening disciplinary powers and other aspects of the legal and regulatory framework.
Consultation Conclusions:
https://apps.sfc.hk/edistributionWeb/api/consultation/conclusion?lang=EN&refNo=21CP3
Resource:
https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR88
