| An Ordinance to consolidate and amend the law relating to financial products, the securities and futures market and the securities and futures industry, the regulation of activities and other matters connected with financial products, the securities and futures market and the securities and futures industry, the protection of investors, and other matters incidental thereto or connected therewith, and for connected purposes. [1 April 2003] L.N. 12 of 2003 (Originally 5 of 2002) Cap 571 s 1 Short title PART I PRELIMINARY (1) This Ordinance may be cited as the Securities and Futures Ordinance. (2) (Omitted as spent) Cap 571 s 2 Interpretation (1) Schedule 1 contains interpretation provisions which apply to this Ordinance in accordance with their terms. (2) Individual Parts and provisions of this Ordinance contain interpretation provisions which have application in accordance with their terms. (3) The Commission may, by notice published in the Gazette, amend Parts 2, 3, 4 and 5 of Schedule 1. Cap 571 s 3 Securities and Futures Commission PART II SECURITIES AND FUTURES COMMISSION Division 1-The Commission (1) Notwithstanding the repeal of the Securities and Futures Commission Ordinance (Cap 24) under section 406, the body established by section 3 of that Ordinance as the Securities and Futures Commission shall continue in existence in its original name as a body corporate with power to sue and be sued in that name. (2) Subject to the provisions of this Ordinance, the corporate identity of the Commission, and the rights, privileges, powers, obligations and liabilities of the Commission and those of others in relation to the Commission, are not affected by the repeal of the Securities and Futures Commission Ordinance (Cap 24) under section 406, and any reference to the Commission (whether by reference to that Ordinance or otherwise) in any Ordinance or any instrument, record or document, or in or for the purposes of any proceedings, agreement or arrangement (whether in writing or not) shall be construed accordingly. (3) The receipts of the Commission are not subject to taxation under the Inland Revenue Ordinance (Cap 112). (4) Part 1 of Schedule 2 contains provisions relating to the constitution and proceedings of and other matters relating to the Commission. Cap 571 s 4 Regulatory objectives of Commission The regulatory objectives of the Commission are- (a) to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry; (b) to promote understanding by the public of the operation and functioning of the securities and futures industry; (c) to provide protection for members of the public investing in or holding financial products; (d) to minimize crime and misconduct in the securities and futures industry; (e) to reduce systemic risks in the securities and futures industry; and (f) to assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate steps in relation to the securities and futures industry. Cap 571 s 5 Functions and powers of Commission (1) The functions of the Commission are, so far as reasonably practicable- (a) to take such steps as it considers appropriate to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry; (b) to supervise, monitor and regulate- (i) the activities carried on by recognized exchange companies, recognized clearing houses, recognized exchange controllers or recognized investor compensation companies, or by persons carrying on activities regulated by the Commission under any of the relevant provisions, other than registered institutions; and (ii) such of the activities carried on by registered institutions as are required to be regulated by the Commission under any of the relevant provisions;(c) to promote and develop an appropriate degree of self-regulation in the securities and futures industry; (d) to promote, encourage and enforce the proper conduct, competence and integrity of persons carrying on activities regulated by the Commission under any of the relevant provisions in the conduct of such activities; (e) to encourage the provision of sound, balanced and informed advice regarding transactions or activities related to financial products; (f) to take such steps as it considers appropriate to ensure that the relevant provisions are complied with; (g) to maintain and promote confidence in the securities and futures industry in such manner as it considers appropriate, including by the exercise of its discretion to disclose to the public any matter relating or incidental to the performance of any of its functions; (h) to co-operate with and provide assistance to regulatory authorities or organizations, whether formed or established in Hong Kong or elsewhere; (i) to promote understanding by the public of the securities and futures industry and of the benefits, risks and liabilities associated with investing in financial products; |
