What are the main sources of regulatory laws in your jurisdiction?
- Securities and Futures Ordinance (SFO) – The SFO (along with its subsidiary legislation) is the principal legislative instrument that governs the securities and futures markets and the non-bank leveraged foreign exchange market in Hong Kong. The SFO also defines and governs the powers, roles and responsibilities of the SFC to administer the legal and regulatory framework within which intermediaries should operate. This includes making rules (in the form of subsidiary legislation) and issuing codes and guidelines (which are non-statutory in nature) across a wide range of areas.
- Companies (Winding Up and Miscellaneous Provisions) Ordinance (CWUMPO) and the Companies Ordinance (CO) – The CO is the principal legislation governing the incorporation and operation of companies in Hong Kong. The CWUMPO imposes registration requirements on prospectuses for offering shares/debentures by companies (whether incorporated in or outside of Hong Kong) to the Hong Kong public.
- Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) – The AMLO provides for the imposition of requirements relating to customer due diligence and record-keeping on specified financial institutions and designated non-financial businesses and professions. The AMLO also covers the licensing/registration and regulatory requirements on money service operators, trust or company service providers, VA service providers, and dealers in precious metals and stones.
- Banking Ordinance (BO) – The BO (along with its subsidiary legislation) provides the legal framework for banking supervision in Hong Kong. In addition, there is a large body of HKMA-issued regulatory guidelines and circulars and a number of HKMA-endorsed non-statutory codes published by industry bodies. The development of the regulatory framework for the Hong Kong banking sector is guided by international standards, such as those recommended by the Basel Committee on Banking Supervision.
- Payment Systems and Stored Value Facilities Ordinance (PSSVFO) – The PSSVFO empowers the HKMA to designate certain payment systems and their operators and/or settlement institutions for HKMA supervision. Initially applied only to large-value clearing and settlement systems for securities and bank payments, the PSSVFO now also empowers the HKMA to regulate retail payment systems. It also regulates the issuing and facilitation of certain stored value facilities.
- Insurance Ordinance – The Insurance Ordinance (along with its subsidiary legislation) governs the regulation of insurance companies and insurance intermediaries, and it provides for the authorization and prudential supervision by the IA of insurers carrying out insurance business in, or from, Hong Kong. The IA is empowered by the Insurance Ordinance to supervise and regulate authorized insurers and licensed insurance intermediaries.
- Mandatory Provident Fund Schemes Ordinance (MPFSO) – The MPFSO (along with its subsidiary legislation) is the principal legislation that governs the administration and management of MPF schemes. The MPFSO also provides for the approval of persons as trustees of MPF schemes and the control of such approved trustees, as well as the regulation of sales and marketing activities in relation to MPF schemes. The MPFA is a statutory body established under the MPFSO to perform the above functions. The MPFA also acts as Registrar of Occupational Retirement Schemes, which is another type of retirement scheme that can be set up voluntarily by employers to provide retirement benefits for their employees.