Corporate Dimensions of the Securities and Futures Ordinance

Abstract

The enactment of the Securities and Futures Ordinance, which came into effect in April 2003, marked the end of a decade-long effort to consolidate 10 ordinances regulating the securities and futures markets in Hong Kong. While it is primarily a consolidating ordinance to regulate financial intermediaries and facilitate Internet trading, there are new provisions in the Ordinance that are likely to have significant implications for corporate governance in Hong Kong. This article analyses those provisions and concludes that while the Ordinance is a major positive development from the corporate governance perspective, there remain a number of unresolved issues, such as the status of the Listing Rules, and the independence of auditors, that still require urgent reforms.