The Securities and Futures Commission (SFC) is an agency tasked with investigating potential violations by companies in Hong Kong. They carry out different types of enquiries commonly known as SFC investigations, although most are simply audits and inquiries. If you are subjected to an SFC investigation, you must provide the commission with sufficient proofs that your company has not made any wrongdoing. In many cases, you will need an SFC lawyer Hong Kong for counsel and representation.
Here is a quick guide to three of the most common types of SFC investigations.
Formal SFC Investigations
These are formal inquiries conducted by SFC’s Enforcement Division. They are granted a spectrum of investigative authority as stipulated in the country’s Securities and Futures Ordinance (SFO). A formal SFC investigation is carried out to find out whether a company has committed any violation of the SFO and who in particular is at fault.
SFC Corporate Finance Inquiries
Corporate finance inquiries are for companies who are member of the Hong Kong Exchanges and Clearing (HKEx). SFC’s Finance Division handles these inquiries to detect the conduct of frauds and other similar illegal acts such as misfeasance.
SFC Inspections and Field Audits
This type of inquiry is focused on licensed corporations and is conducted to help the commission’s Intermediaries Division in making sure they abide by the regulations. The division may refer an SFC inspection or field audit to the Enforcement Division for an SFC investigation notice.
There are other types of investigations or inquiries carried out by the SFC. Other examples include surveillance and intermediary inquiries. If you happen to be subject to such investigations, it is important to take the necessary steps and get help from a professional on this matter. Otherwise, you might face significant penalties. So seek help from an experienced SFC lawyer.
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