Tuesday October 8 2019
News Source: Global Exchanges
Focus: Stock Exchange Regulation
Country: Hong Kong
On 08th October 2019, the Securities and Futures Commission (SFC) released consultation conclusions on proposed enhancements to the Investor Compensation Regime. A total of 10 written submissions from individuals, intermediaries and an industry association were received.
The proposed enhancements were:
- to raise the compensation limit from $150,000 to $500,000 per investor per default, and, consequential to this, to raise the trigger levels for suspending and reinstating the investor compensation fund (ICF) levies from $1.4 billion and $1 billion, to $3 billion and $2 billion respectively;
- to adjust the coverage of the ICF regime so that it covers the northbound leg of Stock Connect and excludes the southbound leg; and
- to empower the SFC (in exceptional circumstances) to make interim compensation payments out of the ICF where urgent pay-outs are necessary to manage potential systemic risks in the securities and futures industry or to the financial stability of Hong Kong.
Subject to the legislative process, the SFC expects to implement the changes in early 2020.
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