Securities & Futures Commission of Hong Kong

Intermediaries

 Which companies or persons are required to be licensed by or registered with the Securities and Futures Commission (SFC)? 

Companies or persons who are engaged in the business of dealing with or giving advice to the investing public regarding the securities, futures and non-bank retail leveraged foreign exchange markets in Hong Kong are required to be licensed by or registered with the SFC. Licensed individuals, corporations and registered institutions are obliged to comply with the local laws as well as the SFC’s rules and regulations. Regulated activities are set out in Schedule 5 of the Securities and Futures Ordinance. You can visit the SFC website on “Regulated activities” for details.

 How do I find out if my brokerage or account executive is licensed? 

To verify the registration or licensing status of a brokerage or an account executive engaging in regulated securities, futures or leveraged foreign exchange activities in Hong Kong, please check the SFC’s Public Register of Licensed Persons and Registered Institutions. Details of SFC licensees and licensed corporations, including their licence records and public disciplinary actions, are included in the register.

To learn more about the regulation of brokerages and their account executives, please refer to the “Choosing broker” section on The Chin Family website.

 Is my brokerage responsible for notifying me to meet margin call requirements? 

Your brokerage may not be obliged to make a margin call or notify you that the value of the securities held in your account has fallen below the specified lending ratio. In that case, your brokerage may sell some or all of your securities without consulting you. To learn more about margin calls, please refer to the “Buying on margin” section on The Chin Family website.

 Are financial analysts, commentators and columnists licensed by the SFC? 

Persons who give advice on securities or futures contracts or issue related analysis or reports through the following channels are exempt from the SFC’s licensing requirements:

  • a newspaper, magazine, book or other publication made generally available to the public; or
  •  television or radio broadcast, whether on a subscription basis or otherwise.

For more information, please refer to section 1.3.17 of the Licensing Handbook.

 Is trading of bullion or Loco London gold regulated by the SFC? 

No. The SFC is mainly responsible for regulating the securities, futures and non-bank retail leveraged foreign-exchange markets in Hong Kong. Spot precious-metal trading is not regulated by the SFC.

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