SFC concludes consultation on proposals to enhance regulation of non-corporate listed entities
27 Mar 2013
The Securities and Futures Commission (SFC) has published today conclusions on proposals to enhance the regulatory regime for non-corporate entities that are listed on The Stock Exchange of Hong Kong Ltd (SEHK).
Respondents in general supported the proposals, with comments on technical issues. They agreed that the proposals would help enhance investor protection as well as market transparency for all listed entities, whether they are companies or other types of business organisation.
The SFC will proceed with the proposals and make appropriate recommendations on the legislative amendments to the Government.
The main points of the consultation conclusions are as follows:
- extend the SFC’s supervision and investigation powers under Parts VIII and X of the Securities and Futures Ordinance (SFO), the market misconduct provisions under Parts XIII and XIV of the SFO, the requirement to disclose price sensitive information under Part XIVA of the SFO and the disclosure of interests provisions under Part XV of the SFO to expressly cover non-corporate listed entities (Note 1);
- clarify that, for listed depositary receipts, the overseas issuer whose shares/units are the underlying shares/units (and not the relevant depositary bank) is the “issuer”; and
- exclude entities whose only listed securities are debentures from the Part XV disclosure of interests regime.
The consultation period ended on 24 December 2012 and ten written responses were received.
End
Note:
- Listed open-ended collective investment schemes (as detailed in the consultation paper on proposals to enhance the regulatory regime for non-corporate listed entities on 23 November 2012) will be excluded from the disclosure of interests regime under Part XV of the SFO.
Page last updated : 27 Mar 2013
