Posted inRegulation

HK’s SFC signs pact with US counterpart

Hong Kong’s Securities and Futures Commission has signed an agreement with the Financial Industry Regulatory Authority (FINRA) in the US for cross-border oversight.

The agreement involves supervision and oversight of regulated entities operating cross-border between the two jurisdictions. 

The regulators have agreed to cooperate in the interests of fulfilling their respective regulatory mandates.

The memorandum of understanding (MoU) covers financial services companies regulated by either the SFC or FINRA operating in both jurisdictions. 

Areas of particular interest include investor protection, promoting the competence and integrity of cross-border regulated entities, fostering market and financial integrity, reducing systemic risk, and maintaining financial stability. 

The MoU, which came into effect on 9 May 2016, was reached, “in view of the growing globalisation of the world’s financial markets and the increase in cross border operations and activities of regulated entities”.

The SFC also has cross-border regulatory agreements with China’s regulator, the China Securities Regulatory Commission, for both the Stock Connect and Mutual Recognition of Funds schemes.

Part of the Mark Allen Group.