PrepLicense: HK SFC · Study Notes · Paper 1

SFC Paper 1: Fundamentals of Securities and Futures Regulation

Paper 1 is mandatory for all SFC licensees, covering Hong Kong's financial regulatory framework, principal SFO provisions, licensee duties and market misconduct.

1. 香港金融監管架構

Hong Kong's regulatory landscape: SFC oversees securities, futures, asset management and corporate finance; HKMA oversees banking; IA oversees insurance; MPFA oversees MPF. Each has its own statutory remit.

2. 《證券及期貨條例》(SFO, Cap. 571) 概覽

The Securities and Futures Ordinance (Cap. 571) is the principal legislation, covering the 10 Regulated Activities (RA 1–10), licensing, market misconduct and disclosure.

3. 10 類受規管活動 (RA 1–10)

RA 1 dealing in securities; RA 2 dealing in futures contracts; RA 3 leveraged foreign exchange trading; RA 4 advising on securities; RA 5 advising on futures; RA 6 advising on corporate finance; RA 7 providing automated trading services; RA 8 securities margin financing; RA 9 asset management; RA 10 credit rating services.

4. 持牌人「合適人選」標準

Fit-and-proper criteria consider integrity, competence, financial standing and prior conduct. Responsible Officers (RO) must possess sufficient experience and competence in the relevant RA.

5. 負責人員 (RO) 與代表 (LR) 制度

Each approved RA requires at least 2 ROs, one of whom serves as the Manager-in-Charge with primary supervisory responsibility and must be ordinarily resident in Hong Kong. Licensed Representatives must be accredited to a licensed corporation.

6. 市場失當行為的六大類別

The six categories of market misconduct: insider dealing, false trading, price rigging, stock market manipulation, disclosure of misleading information to induce transactions, and disclosure of information about prohibited transactions.

7. 市場失當行為審裁處 (MMT) 與刑事檢控雙軌制

Misconduct may be pursued through the civil Market Misconduct Tribunal or criminal prosecution. The MMT is judge-led and may order fines, director disqualification and cold-shoulder orders.

8. 操守準則 (Code of Conduct)

Nine General Principles of the SFC Code of Conduct: honesty and fairness, diligence, capabilities, information about clients, information for clients, conflicts of interest, compliance, client assets, and responsibilities of senior management.

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本應用為獨立學習工具，與證券及期貨事務監察委員會（SFC）及香港證券及投資學會（HKSI Institute）無關，亦未獲其認可。