Golden Finance reported that the Securities and Futures Commission of Hong Kong (SFC) officially launched a consultation project today (June 12), aiming to effectively restrain the abuse of names by unregulated institutions and prevent the public from misunderstanding the names of institutions and mistakenly mistaking them for regulated ones. In view of the continuous emergence of new business forms such as virtual asset trading platforms, in order to keep up with market changes, the Securities and Futures Commission suggests expanding the existing list of restricted titles under the Securities and Futures Ordinance.
In recent years, with the innovative development of the financial market, various unregulated institutions have emerged in an endless stream. Some institutions deliberately use names that are easily confused with those of regulated institutions when naming, which greatly interferes with investors’ judgment and increases investment risks. The consultation measures taken by the China Securities Regulatory Commission this time are precisely aimed at curbing this chaos from the source and maintaining market order and the interests of investors.
In terms of specific suggestions, the scope of restrictions will be further expanded. It not only includes common terms with meanings similar to “exchange”, such as expressions like “trading platform”, but also covers terms that generally refer to financial products and platforms regulated by the Securities and Futures Ordinance, such as “virtual assets” and “settlement facilities”. Furthermore, those titles that may imply associations with existing exchanges, virtual asset trading platforms and other similar institutions have also been included in the restricted scope. This means that in the future, those institutions that attempt to “ride the wave of popularity” or “play on the edge” through their names will be strictly restricted.
At the same time, given that the virtual asset trading platform system is subject to both the Securities and Futures Ordinance and the Anti-Money Laundering and Terrorist Financing Ordinance (the “Anti-Money Laundering Ordinance”), the SFC also proposes to add similar name restriction provisions to the Anti-Money Laundering Ordinance to build a more comprehensive and strict regulatory network and ensure the compliant operation of the virtual asset sector.
The launch of this consultation activity demonstrates the determination of the Hong Kong Securities and Futures Commission to take proactive actions and strengthen investor protection in the complex and volatile financial environment. By restricting the use of misleading names, it will help reduce the risk of investors suffering losses due to information misguidance, purify the financial market environment, and promote the industry to develop in a more standardized and healthy direction. Market participants and the public can submit their opinions on the relevant proposals during the consultation period to jointly contribute to the stable operation of the Hong Kong financial market.
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