According to Foresight News, the Hong Kong Securities and Futures Professionals Association has proposed the establishment of an independent self-regulatory organization for the securities, futures, asset management, and virtual asset industries. The proposal was published on the association's official website in a letter to the Hong Kong Treasury Bureau.
The association suggests that, considering the situation in Hong Kong, the Securities and Futures Commission should retain the power to regulate market behavior, such as prohibiting insider trading, fraud, and market manipulation. However, the power to issue licenses should be separated and given to a self-regulatory body composed solely of the securities, futures, asset management, and virtual asset industries, including those currently defined as regulated activities by the Hong Kong Securities and Futures Commission.
The self-regulatory body would have the power to lead and coordinate the development of the securities industry, including approving new securities dealers, approving advertisements, reprimanding licensees who violate business rules, and even imposing limited penalties within its power.
Furthermore, for the development and changes in the Hong Kong securities industry, the proposal suggests that members of the self-regulatory body should first propose to its management committee. After obtaining a majority vote, the proposal should then be submitted to relevant organizations, including but not limited to the Securities and Futures Commission and the exchange, for review and discussion.
