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Integrity & Credibility
(Trust  or Company Service Provider - Licence no. TC002809)
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Key Points
Regulation by sectors
  • Banking
  • Securities
  • Insurances
  • MPF
Private Companies 
  • Disclosure-based
Public companies 
  • Merit-based
Government Regulators
  • Hong Kong Monetary Authority
  • Insurance Authority
  • Mandatory Provident Fund Schemes Authority
  • Hong Kong Exchanges & Clearing Limited
Independent Regulators
  • Securities and Futures Commission

Hong Kong financial market

Hong Kong is an international financial city; it offers wide range of financial product and services in the financial market for investor to invest.

 Financial Products and Services  

Financial products include securities,derivatives including futures, foreign exchange products, mutual funds,unit and investment trusts, certificates of deposit and other bankingproducts, money market products, gold market products, transferableinterests in companies such as shares, debentures, warrants andconvertibles, etc.
Financial services include securities dealing, futures trading, foreign exchange trading, financial advising, corporatefinance, underwriting, mergers and acquisitions, venture capital,investment and portfolio management, investment banking, commercialbanking, money lending, gold trading, insurance and insurance brokering,etc.

Regulation philosophy 

The regulation of financial products and financial services in Hong Kong are by sectors of banking, securities, insurances & MPF. Theobjectives of these regulations are for investor protection, regulatedtrading practices and provision, investigation of malpractice andmisconduct.

Hong Kong's system of regulations for financial market are merit-based and disclosure based system.
Private Companies: Companies Ordinance isdisclosure-based as participant is obligated to use full information tomake his own independent investment decisions.
Public Companies: Listing Rules of Hong Kong are merit-based and objectives are to screen out undesirable offerings.

Regulators of financial market in Hong Kong

To regulate all the financial activities, Hong Kong has variousgovernment regulators and an independent regulator body with mission toprotect investors rights, transparency and issue licenses to theparticipants of financial market.

Government regulators 

Hong Kong Monetary Authority (HKMA) manages monetary policy and supervision of banking system, issues licenses to banks, supervising the licensees. Banking Ordinance. 
Insurance Authority (IA) to promote the general stability of the insurance industry,issue regulation of insurance agents, regulation of insurance brokers,regulation of insurance companies, regulation of insuranceintermediaries under the Insurance Ordinance .
Mandatory Provident Fund Schemes Authority (MPFA) register provident fund schemes, approve pooledinvestment funds, supervision of issue regulations for administrationand management of registered schemes and pooled investment funds underthe MPFS Ordinance. 
Hong Kong Exchagnes & Clearing Limited (HKEx) recognized exchange controller by the law and it isresponsible for ensuring an orderly and fair market in securities andfutures contracts traded on or through the Stock Exchange of Hong Kong(SEHK) and Hong Kong Futures Exchange Limited (HKFC).

 Financial Independent regulator in Hong Kong

Securities and Futures Commission (SFC) is an independent body under Securitiesand Futures Ordinance (SFO). SFC is an active member of IOSCO. The mainobjectives of SFC to maintain and promote the fairness, transparency,eliminate crime and misconduct, built public confidence in the financial industry and assist maintaining Hong Kong's status as a leadinginternational financial center in the world.

SFO have given power to SFC to deal with some matters related to government regulators as well. SFC may revoke or suspend registration of Banks. In this case, ithas signed memorandum of understanding (MOU) with Hong Kong MonetaryAuthority (HKMA) to minimize regulations overlaps between both of them.

Authorization of investment-liked assurance schemes and pooled retirement funds which are marketed by Insurance Authority (IA).
Handling complaints about MPF products and approved trustees related to Mandatory Provident Fund Schemes Authority. (MPFA).
The SFC supervises and monitors the activities of HKEx.

Hong Kong regulated financial activities

Prior to Securities and Futures Ordinance (SFO) legal framework forfinancial industry products and services was dealt with 10 differentseparated laws.
Hong Kong being important overseas fund-raising centre for MainlandChina, important centre in the Asia-Pacific time zone. In the view of in global treads for an expansion of new financial products and services,new market participants, new trading methods and enhanced globalcompetition, efficient and flexible regulatory regime came to existenceunder Securities and Futures Ordinance (SFO) known as Securities andFutures Commission (SFC).

There are 9 types of regulated activities regulated by SFC.

Type 1: Dealing in securities
Type 2: Dealing in futures contracts
Type 3: Leveraged foreign exchange trading
Type 4: Advising on securities
Type 5: Advising on futures contracts
Type 6: Advising on corporate finance
Type 7: Providing automated trading services
Type 8: Securities margin financing and
Type 9: Asset management
Under the SFO a single license is given only tocorporations and individuals accredited to them. Sole proprietors andpartnerships are not recognized for any license by SFC.

We provide Hong Kong company incorporation, other corporate services, offer service for apply and obtaining required licenses and trading rights for financial companies as well its employees. 
Please contact us for further details.
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