SFC new power to provide overseas regulators with supervisory assistance - a glimpse of the regulators' future cooperation

With effect from 13 November 2015, the Securities and Futures Ordinance was amended to give new powers to the Securities and Futures Commission (SFC) to provide supervisory assistance to overseas regulators. The SFC now has the power to compel licensed corporations to produce records and documents or provide answers upon the request of overseas regulators in a supervisory context.

The new power is part of the SFC’s attempt to enhance international cooperation with overseas regulators through a series of Memoranda of Understanding (MoU). According to the draft MoU that the SFC will use to negotiate with overseas regulators, the regulators will work much more closely than ever before in their supervision of international firms with group companies that are regulated both locally and overseas. The new powers of the SFC will have far reaching implications for international firms in terms of their operation and compliance.

In our ebulletin which can be accessed here, Will Hallatt and John Siu take a closer look at the new powers and the details of the cooperation between the regulators, and provide some salient take away points.

If you wish to discuss, please contact Will Hallatt, John Siu or your usual Herbert Smith Freehills contact.