Financial services compliance—Hong Kong—Q&A guide
Financial services compliance—Hong Kong—Q&A guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Financial services compliance—Hong Kong—Q&A guide
  • 1. What national authorities regulate the provision of financial products and services?
  • 2. What activities does each national financial services authority regulate?
  • 3. What products does each national financial services authority regulate?
  • 4. What is the registration or authorisation regime applicable to financial services firms and authorised individuals associated with those firms? When is registration or authorisation necessary, and how is it effected?
  • 5. What statute or other legal basis is the source of each regulatory authority’s jurisdiction?
  • 6. What principal laws and financial service authority rules apply to the activities of financial services firms and their associated persons?
  • 7. What are the main areas of regulation for each type of regulated financial services provider and product?
  • 8. What additional requirements apply to financial services firms and authorised persons, such as those imposed by self-regulatory bodies, designated professional bodies or other financial services organisations?
  • 9. What powers do national financial services authorities have to examine and investigate compliance? What enforcement powers do they have for compliance breaches? How is compliance examined and enforced in practice?
  • More...

Financial services compliance—Hong Kong—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to financial services compliance in Hong Kong published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Davis Polk & Wardwell LLP—Joyce Chow; Karen Chan

1. What national authorities regulate the provision of financial products and services?

The Hong Kong system of financial regulation reflects a modified institutional approach, with different regulators largely responsible for the oversight of different types of financial institutions.

The two principal authorities responsible for the regulation of banking, securities and derivatives products and services are the:

  1. Hong Kong Monetary Authority (HKMA), which regulates banks; and

  2. Securities and Futures Commission (SFC), which regulates securities, futures and other contract markets, as well as certain entities that participate in those markets.

There is increasing overlap among and between regulators, particularly as banks expand the range of securities activities in which they are engaged. See question 2, regarding the activities regulated by each authority.

2. What activities does each national financial services authority regulate?

The HKMA oversees all aspects of authorised banking institutions within its jurisdiction, including banks, restricted licence banks (eg, merchant banks) and other deposit-taking companies. It supervises these authorised institutions on a consolidated basis, with the aim of promoting the safety and stability of the banking system, including in respect of local and overseas branches and

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