SFC - Securities and Futures Commission of Hong Kong

Who is the SFC?

Hong Kong is an established international financial market, where a number of residents are looking to forex trading as a form of investment.

Regulated forex brokers in Hong Kong are monitored by the Securities And Futures Commission(SFC), which was created in 1989 in response to the stock market crash of 1987.

SFC is an independent statutory body responsible for the securities and futures markets in Hong Kong. It is funded by licensing fees and transaction levies.

Its main responsibilities of which cover the supervision of the above said markets, the promoting of a healthy trading environment, customer protection and the showcasing of Hong Kong as an attractive financial market and centre within China.

How does the SFC regulate a forex broker?

1. Safety of Client Funds：

Segregate accounts are required by SFC.

2. Requirement on Forex Brokers’ Reports：

Liquid capital com putation; Required liquid capital computation; Credit facility summary; Margin client analysis; Analysis of securities collateral; Rolling balance cash client analysis; Profit and loss account; Analysis of client assets; Foreign currency position of licensed corporation licensed for leveraged foreign exchange trading; Report on proprietary derivative positions; List of recognized counterparties; Client profile and aggregate net value of assets under management.

How to check a broker is SFC-regulated or not?

Generally speaking, SFC-regulated broker profile will be found at the Public Register of Licensed Persons and Registered Institutions page on SFC website. Try to find it and check if it will match the info from the broker website.

The detailed steps are as below:

1. Find the licensed/reference no.(preferred) or name of the forex broker, which you can get from the broker’s website;

2. Enter the reference no. or name of broker into the search bar on https://apps.sfc.hk/publicregWeb/searchByName

Note:

If you can’t find the broker’s profile on SFC wesbite, it’s probably an unauthorised broker and please keep away of it.

3. And you’ll get the broker’s contents on SFC website. At this time you will click the ‘License details’ and check if the broker has the authorization to provide the financial service of ‘Leveraged Foreign Exchange Trading’ ;

4. If all the steps above have been done, don’t forget to check the most important information: check if the firm details published on SFC website matches the ones you’ll go to trade with, especially the website and email etc.

If no, please keep away the broker because it’s probably an unauthorized firm and your money will fall in danger.

How to solve disputes with a SFC-regulated broker?

When you have disputes with a SFC-regulated broker, you can proceed the following ways:

1st way: The recommended way is to contact the broker directly and discuss with them to find a solution.

2nd way: If you’re not satisfied with the broker’s solution, lodge a complaint to SFC. It’s advised to file it in writing using Complaint Form, which is available online on SFC website under “Lodge a complaint“.

After completing the Complaint Form, please send it to SFC:

by email to complaint@sfc.hk; or

by post to 54/F, One Island East, 18 Westlands Road, Quarry Bay, Hong Kong.

If you cannot write to SFC, you can call SFC on 852 2231 1222 (press 5 after selecting your preferred language).

3rd way: If the 2 ways above can’t solve the dispute, the last way is to issue a case to the court in Hong Kong.