Securities and Futures Commission
(SFC)Regulatory Snapshot
The Securities and Futures Commission is Hong Kong's statutory body responsible for regulating the securities and futures markets. Established in 1989, the SFC administers the laws governing the securities and futures markets in Hong Kong and facilitates the development of these markets.
About the SFC
The Securities and Futures Commission (SFC) is Hong Kong's independent statutory body established to regulate the securities and futures markets. Since its founding in 1989 under the Securities and Futures Commission Ordinance, the SFC has played a central role in maintaining the integrity and efficiency of Hong Kong's position as a leading international financial centre.
Regulatory Framework
The SFC regulates all aspects of the securities and futures industry in Hong Kong through a licensing regime that covers nine types of regulated activities. Entities conducting leveraged foreign exchange trading must hold a Type 3 licence, meeting rigorous financial, operational, and conduct requirements set by the SFC.
Investor Protection
The Investor Compensation Fund (ICF), managed by the Investor Compensation Company, provides compensation of up to HKD 500,000 per investor in the event of default by a licensed intermediary. The Financial Dispute Resolution Centre (FDRC) offers an independent and affordable mediation and arbitration service for monetary disputes between financial institutions and their customers.
- Investor Compensation Fund — up to HKD 500,000 per investor
- Client money segregation requirements
- Fit and proper person requirements for licensees
- Comprehensive conduct regulations
| Instrument | Retail | Professional |
|---|---|---|
| Major Forex | 1:20 | 1:20 |
| Minor Forex | 1:20 | 1:20 |
| Gold | 1:20 | 1:20 |
| Indices | 1:20 | 1:20 |
| Shares CFDs | 1:5 | 1:5 |
| Crypto | 1:2 | 1:2 |
Hong Kong maintains independent regulatory framework under "One Country, Two Systems" principle.
Body: Financial Dispute Resolution Centre (FDRC)
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