SFC publishes Annual Report 2022-23

The Securities and Futures Commission of Hong Kong (SFC) has issued a press release to inform of the publication of the SFC’s annual report for 2022-23. Therein, the Commission outlines its regulatory efforts, supervisory focus, and enforcement actions during the past year. The report also presents statistical data on diverse issues, such as licenses granted or the number of conduct breaches by market participants. Special sections are devoted to financial intermediaries and green and sustainable finance where the SFC provides an overview of ongoing issues such as the currently ongoing consultation on risk management guidelines for future dealers which was primarily triggered by high market volatility in the commodity derivatives market or the new disclosure requirements of investment funds which became fully applicable in November 2022. Finally, the report describes the SFC’s focus for the upcoming year in terms of monitoring market participants and considering new regulations. Some of these focus areas include the following:
– the broadening of the scope of investment funds offered in Hong Kong so as to better serve the interest of Mainland and global investors (e.g. the increase of products offered via ETF Connect);
– the improvement of access to the Hong Kong financial market via improved infrastructures;
– the streamlining of processes particularly in connection with the application for new investment products (the SFC plans to „launch a new, user-friendly online application system);
– the review of ESG rating providers and how they are used by asset managers; or
– the review and amendment of regulation concerning mergers and takeovers of REITs so as to align with international standards and offer a level playing field for Hong Kong REITs.
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As these are only the key priorities for the upcoming year, please review the report for more detailed, comprehensive information.