The Securities and Futures Commission (SFC) is responsible for maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry in Hong Kong. Statement I is correct because the SFC’s regulatory objectives indeed include promoting market transparency. Statement II is also correct as the SFC is tasked with reducing systemic risk in the financial markets. Statement III is incorrect because while the SFC oversees the securities and futures markets, it does not directly manage the exchange rate; this falls under the purview of the Hong Kong Monetary Authority (HKMA). Statement IV is correct because the SFC is responsible for protecting investors by ensuring intermediaries are fit and proper and that they adhere to conduct requirements. Therefore, the correct combination is I, II, and IV only.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading activities in Hong Kong. The SFC’s regulatory objectives include maintaining market integrity, promoting investor protection, and reducing systemic risk. Statement I is correct because the SFC is indeed responsible for authorizing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the necessary financial and operational standards as outlined in the SFO and its subsidiary legislation, such as the Securities and Futures (Financial Resources) Rules. Statement II is also correct. The SFC actively monitors the financial health of licensed corporations involved in leveraged foreign exchange trading. This includes assessing their capital adequacy, risk management systems, and compliance with regulatory reporting requirements. This monitoring is crucial for identifying potential vulnerabilities and preventing market disruptions. Statement III is incorrect because while the HKMA oversees banks and other financial institutions, the direct regulation and licensing of leveraged foreign exchange trading firms primarily falls under the purview of the SFC, not the HKMA. Statement IV is incorrect. The Securities and Futures Appeals Tribunal provides a venue for appealing regulatory decisions made by the SFC, including those related to licensing and disciplinary actions. The Leveraged Foreign Exchange Trading Arbitration Panel specifically handles disputes between licensed leveraged foreign exchange traders and their clients, not appeals against SFC decisions. Therefore, only statements I and II accurately reflect the SFC’s regulatory responsibilities in leveraged foreign exchange trading.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading in Hong Kong. Statement I is correct because the SFC is indeed responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria as defined under the SFO and its subsidiary legislation. This includes assessing their competence, financial soundness, and integrity. Statement II is also correct. The SFC’s regulatory scope extends to overseeing the conduct of licensed persons, including adherence to the Code of Conduct, risk disclosure requirements, and general business conduct standards. This oversight ensures that licensed persons act in the best interests of their clients and maintain market integrity. Statement III is incorrect because while the Hong Kong Monetary Authority (HKMA) regulates registered institutions, the primary responsibility for regulating leveraged foreign exchange trading firms lies with the SFC. The HKMA’s role is more focused on the stability of the banking system. Statement IV is incorrect. The Securities and Futures Appeals Tribunal handles appeals against certain SFC decisions, but the Leveraged Foreign Exchange Trading Arbitration Panel, established under Cap 571F, specifically deals with arbitration of disputes related to leveraged foreign exchange trading. Therefore, only statements I and II accurately reflect the SFC’s regulatory responsibilities in this context.

The Securities and Futures Commission (SFC) is the primary regulatory body overseeing the securities and futures markets in Hong Kong. Its objectives include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. The SFC also aims to protect investors, reduce systemic risk, and assist the Financial Secretary in maintaining financial stability. A key function is to grant licenses to individuals and corporations engaging in regulated activities, ensuring they meet the “fit and proper” criteria. This involves assessing their competence, integrity, and financial soundness. The SFC also enforces regulations, investigates misconduct, and imposes disciplinary actions when necessary. The Securities and Futures Ordinance (SFO) empowers the SFC to regulate leveraged foreign exchange trading, including licensing requirements, conduct of business rules, and investor protection measures. The SFC’s regulatory framework is designed to foster market integrity and investor confidence in the leveraged foreign exchange market. The SFC also plays a role in combating money laundering and terrorist financing within the financial industry, ensuring compliance with relevant legislation and international standards. This is directly relevant to the Leveraged Foreign Exchange Traders Representative Examination Paper 1, specifically the sections on Regulators and Relevant Ordinance and Subsidiary Legislation.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to oversee and regulate leveraged foreign exchange trading activities in Hong Kong. The SFC’s regulatory objectives include maintaining market integrity, promoting investor protection, and reducing systemic risk. Statement I is accurate because the SFC is indeed responsible for authorizing intermediaries engaging in leveraged foreign exchange trading. Statement II is also accurate, as the SFC is tasked with monitoring and enforcing compliance with relevant laws and regulations, including those pertaining to leveraged foreign exchange trading. Statement III is incorrect because the Hong Kong Monetary Authority (HKMA) primarily regulates banking institutions and their involvement in leveraged foreign exchange trading, not all financial institutions. Statement IV is also incorrect because the Leveraged Foreign Exchange Trading Arbitration Panel provides arbitration services for disputes, but it does not have the power to directly impose regulatory sanctions. Therefore, only statements I and II accurately reflect the SFC’s regulatory powers in the context of leveraged foreign exchange trading.

The Securities and Futures Commission (SFC) is the primary regulatory body overseeing the securities and futures markets in Hong Kong. Its regulatory objectives are multifaceted, encompassing the maintenance of market integrity, the promotion of fair and efficient markets, and the protection of investors. To achieve these objectives, the SFC is vested with a range of powers, including the authority to grant licenses to intermediaries, conduct investigations into suspected market misconduct, and take disciplinary actions against those who violate regulatory requirements. The SFC’s corporate governance structure ensures its independence and accountability in the exercise of its regulatory functions. The Securities and Futures Ordinance (SFO) provides the legal framework for the SFC’s regulatory activities, defining the scope of regulation and outlining the powers of the SFC. The Securities and Futures Appeals Tribunal provides a mechanism for appealing decisions made by the SFC. Understanding the SFC’s regulatory objectives, powers, and corporate governance is crucial for licensed persons engaging in leveraged foreign exchange trading to ensure compliance with regulatory requirements and maintain the integrity of the market.

The Securities and Futures Commission (SFC) is the primary regulatory body overseeing the securities and futures markets in Hong Kong. Its regulatory objectives include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. The SFC aims to protect investors, reduce systemic risk, and assist the Financial Secretary in maintaining financial stability. The SFC’s functions encompass licensing and supervising intermediaries, monitoring market activities, enforcing securities laws, and promoting investor education. The Securities and Futures Ordinance (SFO) empowers the SFC with the necessary authority to regulate various activities, including leveraged foreign exchange trading. The SFC’s regulatory framework ensures that licensed persons meet the required standards of competence and integrity, adhere to the Code of Conduct, and comply with financial resources rules. The SFC also plays a crucial role in preventing market misconduct and addressing breaches of regulatory requirements through disciplinary actions and other enforcement measures. The Securities and Futures Appeals Tribunal provides a mechanism for appealing against certain decisions made by the SFC.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading activities in Hong Kong. The SFC’s regulatory objectives include maintaining market integrity, promoting investor protection, and reducing systemic risk. Statement I is correct because the SFC is indeed responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria as stipulated under the SFO. Statement II is also correct; the SFC has the authority to conduct inspections and investigations into the activities of licensed corporations and individuals to ensure compliance with regulatory requirements, including those related to leveraged foreign exchange trading. Statement III is incorrect because while the HKMA regulates financial institutions, the primary regulator for leveraged foreign exchange trading firms is the SFC. Statement IV is correct as the Securities and Futures Appeals Tribunal provides a venue for appealing certain decisions made by the SFC, including licensing decisions and disciplinary actions related to leveraged foreign exchange trading. Therefore, statements I, II, and IV accurately reflect the SFC’s regulatory role and related mechanisms under the SFO.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to oversee and regulate various aspects of the securities and futures markets in Hong Kong. Statement I is correct because the SFC is indeed responsible for granting licenses to individuals and corporations engaging in regulated activities, including leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria. Statement II is also correct as the SFC actively monitors market activities to detect and address market misconduct, such as insider dealing, false trading, and price manipulation, which are detrimental to market integrity. Statement III is incorrect because while the HKMA regulates financial institutions, the primary regulator for leveraged foreign exchange trading firms (that are not registered institutions) is the SFC. Statement IV is correct; the SFC is tasked with developing and enforcing codes of conduct and guidelines for licensed intermediaries, promoting ethical behavior and professional standards within the industry. Therefore, the correct combination is I, II & IV only.

The Securities and Futures Commission (SFC) is responsible for maintaining and promoting the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures markets in Hong Kong. This includes regulating leveraged foreign exchange trading activities. The SFC’s regulatory objectives encompass protecting investors, reducing systemic risk, and ensuring market integrity. The Hong Kong Monetary Authority (HKMA), while overseeing banking institutions, plays a role in regulating registered institutions involved in leveraged foreign exchange trading, especially concerning financial stability and customer protection within those institutions. Therefore, understanding the distinct yet sometimes overlapping roles of the SFC and HKMA is crucial for licensed persons engaging in leveraged foreign exchange trading. The Securities and Futures Ordinance (SFO) empowers the SFC to regulate various aspects of leveraged foreign exchange trading, including licensing, conduct of business, and investor protection measures. The SFO and its subsidiary legislation, such as the Securities and Futures (Client Money) Rules, provide the legal framework for the SFC’s regulatory actions. The Leveraged Foreign Exchange Trading Arbitration Panel provides arbitration services for disputes related to leveraged foreign exchange trading.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading activities in Hong Kong. The SFC’s regulatory objectives include maintaining market integrity, promoting investor protection, and reducing systemic risk. Statement I is correct because the SFC is indeed responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the “fit and proper” criteria as stipulated under the SFO. This includes assessing their financial soundness, competence, and integrity. Statement II is also correct. The SFC has the authority to conduct investigations into suspected market misconduct related to leveraged foreign exchange trading. This power is crucial for enforcing the SFO and deterring illegal activities such as fraud, insider dealing, and market manipulation. Statement III is incorrect because while the HKMA regulates financial institutions, the direct oversight of leveraged foreign exchange trading firms primarily falls under the SFC’s jurisdiction. Statement IV is correct. The Securities and Futures Appeals Tribunal provides a venue for parties aggrieved by certain decisions of the SFC to seek a review. This ensures procedural fairness and accountability in the regulatory process. Therefore, the correct combination is I, II & IV only.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading activities in Hong Kong. Statement I is correct because the SFC’s regulatory objectives include maintaining market integrity, promoting fair trading practices, and protecting investors. Statement II is also correct, as the SFC is responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria, including competence requirements. Statement III is incorrect because while the HKMA regulates financial institutions, the SFC is the primary regulator for leveraged foreign exchange trading activities. Statement IV is correct because the SFO and its subsidiary legislation, such as the Securities and Futures (Client Money) Rules, outline the legal framework for regulating leveraged foreign exchange trading, including requirements for handling client money. Therefore, statements I, II, and IV accurately reflect the SFC’s role and the regulatory framework governing leveraged foreign exchange trading in Hong Kong. The SFC’s powers extend to investigating misconduct, taking disciplinary actions, and setting standards for licensed persons, as detailed in the SFO and related codes and guidelines. These measures are designed to ensure the stability and transparency of the leveraged foreign exchange market and safeguard the interests of investors.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading in Hong Kong. Statement I is correct because the SFC is indeed responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria as outlined in the SFO and related guidelines. This licensing process is crucial for maintaining market integrity and protecting investors. Statement II is also correct. The SFC’s regulatory objectives include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. This encompasses the leveraged foreign exchange market. Statement III is incorrect. While the HKMA regulates financial institutions, the direct regulation of leveraged foreign exchange *trading firms* primarily falls under the purview of the SFC, not the HKMA. The HKMA’s role is more focused on the stability of the banking system, though it may indirectly impact FX trading through its oversight of banks involved in such activities. Statement IV is incorrect as the Securities and Futures Appeals Tribunal provides a venue for appealing certain decisions made by the SFC, including licensing decisions, but it does not directly create or amend regulations. The SFC is responsible for creating and amending regulations under the SFO, subject to legislative processes.

The Securities and Futures Commission (SFC) is the primary regulatory body overseeing the securities and futures markets in Hong Kong. Its regulatory objectives include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. The SFC also aims to protect investors, reduce systemic risk, and assist the Financial Secretary in maintaining financial stability. These objectives are achieved through various functions, including licensing and supervising intermediaries, setting and enforcing market rules, and investigating and prosecuting market misconduct. The SFC’s powers are derived from the Securities and Futures Ordinance (SFO), which grants it broad authority to regulate market participants and activities. The SFC is structured to ensure its independence and accountability, with a board of directors responsible for setting policy and overseeing its operations. The Securities and Futures Appeals Tribunal provides an avenue for appealing SFC decisions, ensuring procedural fairness and due process. Understanding the SFC’s role and objectives is crucial for licensed persons engaging in leveraged foreign exchange trading, as they are subject to its regulatory oversight and enforcement actions.

The Securities and Futures Commission (SFC) is the principal regulatory body in Hong Kong responsible for overseeing the securities and futures markets. Its regulatory objectives, as outlined in the Securities and Futures Ordinance (SFO), include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. The SFC also aims to protect investors, reduce systemic risk, and assist the Financial Secretary in maintaining financial stability. These objectives are achieved through licensing intermediaries, supervising market activities, enforcing regulations, and educating investors. The SFC’s powers include the ability to investigate misconduct, impose sanctions, and make rules and regulations. Understanding the SFC’s regulatory objectives is crucial for Leveraged Foreign Exchange Traders as it directly impacts their operational conduct and compliance requirements under the SFO and its subsidiary legislation, such as the Securities and Futures (Client Money) Rules and the Securities and Futures (Financial Resources) Rules.

The Securities and Futures Commission (SFC) is the primary regulatory body overseeing the securities and futures markets in Hong Kong. A core objective of the SFC is to maintain and promote the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. This includes ensuring that market participants adhere to high standards of conduct and that investors are adequately protected. The SFC also strives to reduce systemic risks within the financial system and to assist the Financial Secretary in maintaining financial stability. Furthermore, the SFC plays a crucial role in combating financial crime and misconduct, such as market manipulation and insider dealing, to uphold the integrity of the markets. These objectives are vital for fostering investor confidence and supporting the long-term growth and stability of Hong Kong’s financial markets, as outlined in the Securities and Futures Ordinance (SFO). The SFC’s regulatory framework is designed to adapt to evolving market conditions and international standards, ensuring that Hong Kong remains a leading international financial center.

The Securities and Futures Commission (SFC) plays a crucial role in maintaining the integrity and stability of Hong Kong’s financial markets, including the leveraged foreign exchange trading sector. Its regulatory objectives encompass several key areas, including investor protection, market fairness, and the reduction of systemic risk. The SFC aims to ensure that investors are adequately informed about the risks associated with leveraged foreign exchange trading and that intermediaries conduct their business with honesty and integrity.

To achieve these objectives, the SFC is empowered to license and supervise intermediaries, set and enforce conduct standards, and investigate and prosecute market misconduct. The Securities and Futures Ordinance (SFO) provides the legal framework for the SFC’s regulatory activities. The SFC’s powers extend to granting licenses, conducting inspections, and taking disciplinary actions against intermediaries who violate regulatory requirements. The SFC also plays a role in promoting investor education and awareness to help investors make informed decisions about leveraged foreign exchange trading. The Securities and Futures Appeals Tribunal provides a mechanism for appealing decisions made by the SFC.

The Securities and Futures Commission (SFC) is tasked with maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures markets in Hong Kong. This includes protecting investors, reducing systemic risk, and helping to maintain Hong Kong’s status as an international financial center. The SFC achieves these objectives through various means, including setting licensing requirements for intermediaries, supervising market participants, and enforcing securities and futures laws. The Hong Kong Monetary Authority (HKMA), on the other hand, primarily focuses on maintaining monetary and banking stability. While the HKMA also plays a role in the financial system’s regulation, its direct involvement in regulating leveraged foreign exchange trading is less comprehensive than that of the SFC. The SFC has specific regulatory oversight and enforcement powers related to leveraged foreign exchange trading activities, ensuring compliance with the Securities and Futures Ordinance (SFO) and its subsidiary legislation, such as the Securities and Futures (Leveraged Foreign Exchange Trading) (Arbitration) Rules. The Leveraged Foreign Exchange Trading Arbitration Panel provides a mechanism for resolving disputes in this area.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading activities in Hong Kong. Statement I is correct because the SFC is indeed responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria as outlined in the SFO and related guidelines. This involves assessing their financial soundness, competence, integrity, and reputation. Statement II is also correct. The SFC’s regulatory objectives include maintaining market integrity, promoting investor protection, and reducing systemic risk, all of which are directly relevant to leveraged foreign exchange trading due to its inherent risks and potential for market manipulation. Statement III is incorrect because while the HKMA regulates financial institutions, the primary responsibility for regulating leveraged foreign exchange trading firms lies with the SFC, not the HKMA. Statement IV is correct. The Securities and Futures Appeals Tribunal provides a venue for appealing certain decisions made by the SFC, including licensing decisions and disciplinary actions related to leveraged foreign exchange trading. Therefore, the correct combination is I, II & IV only.

The Securities and Futures Commission (SFC) is tasked with maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures markets in Hong Kong. This includes protecting investors, reducing systemic risk, and helping to maintain Hong Kong’s status as an international financial center. The SFC achieves these objectives through various means, including setting licensing requirements for intermediaries, supervising market activities, and enforcing regulations against market misconduct. The Securities and Futures Ordinance (SFO) empowers the SFC to regulate a wide range of activities related to securities and futures, including leveraged foreign exchange trading. The SFC’s regulatory framework aims to ensure that market participants adhere to high standards of conduct and that investors are adequately informed about the risks involved in leveraged foreign exchange trading. The SFC also oversees the financial resources and record-keeping practices of licensed corporations to safeguard client assets and maintain market integrity. The Securities and Futures Appeals Tribunal provides a mechanism for appealing decisions made by the SFC.

The Securities and Futures Commission (SFC) is tasked with maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry in Hong Kong. This includes regulating leveraged foreign exchange trading activities. The SFC’s regulatory objectives are broad, encompassing investor protection, reducing systemic risk, and ensuring market integrity. The SFC achieves these objectives through various means, including licensing intermediaries, setting conduct standards, monitoring market activities, and enforcing regulations. The Securities and Futures Ordinance (SFO) empowers the SFC to investigate and take action against misconduct in the securities and futures markets. The SFC’s powers extend to granting licenses, conducting inspections, and imposing disciplinary sanctions. The SFC also plays a role in promoting public understanding of the securities and futures markets. The Hong Kong Monetary Authority (HKMA), while responsible for maintaining monetary and financial stability, has a more limited role in the direct regulation of leveraged foreign exchange trading compared to the SFC. The HKMA primarily focuses on the stability of the banking system and the regulation of authorized institutions.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to oversee and regulate leveraged foreign exchange trading activities in Hong Kong. The SFC’s regulatory objectives include maintaining market integrity, promoting investor protection, and reducing systemic risk. Statement I is accurate because the SFC is indeed responsible for authorizing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the necessary fitness and properness standards as outlined in the SFO and related guidelines. Statement II is also correct; the SFC is tasked with monitoring and supervising these intermediaries to ensure ongoing compliance with regulatory requirements, including financial resources rules and client money rules. Statement III is incorrect because while the HKMA regulates financial institutions, the direct regulation of leveraged foreign exchange trading firms falls under the purview of the SFC, not the HKMA. Statement IV is incorrect as the Leveraged Foreign Exchange Trading Arbitration Panel facilitates arbitration for disputes, but it does not have the power to directly enforce regulatory requirements; this remains the responsibility of the SFC. Therefore, the correct combination is I & II only.

The Securities and Futures Commission (SFC) is the primary regulatory body overseeing the securities and futures markets in Hong Kong, as defined under the Securities and Futures Ordinance (SFO). Its regulatory objectives include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. The SFC aims to protect investors, reduce systemic risk, and assist the Financial Secretary in maintaining financial stability. To achieve these objectives, the SFC is vested with various powers, including licensing and supervising intermediaries, investigating misconduct, and enforcing regulations. The SFC’s scope of regulation covers a wide range of activities, including leveraged foreign exchange trading. The Hong Kong Monetary Authority (HKMA), while responsible for maintaining monetary and banking stability, has a more limited direct regulatory role in leveraged foreign exchange trading compared to the SFC. The SFO and its subsidiary legislation, such as the Securities and Futures (Leveraged Foreign Exchange Trading) (Arbitration) Rules, provide the legal framework for regulating leveraged foreign exchange trading activities, with the SFC responsible for enforcing these rules and regulations. The Securities and Futures Appeals Tribunal provides a venue for appealing certain decisions made by the SFC.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to oversee and regulate leveraged foreign exchange trading activities in Hong Kong. Statement I is accurate as the SFC is indeed responsible for licensing intermediaries engaged in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria as defined under the SFO and its subsidiary legislation. This licensing process is crucial for maintaining market integrity and protecting investors. Statement II is also correct. The SFC’s regulatory objectives include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry, which directly applies to leveraged foreign exchange trading. These objectives are fundamental to fostering investor confidence and ensuring a stable market environment. Statement III is incorrect because while the HKMA regulates financial institutions, its direct regulatory role in leveraged foreign exchange trading is limited compared to the SFC, which is the primary regulator for this specific activity. Statement IV is incorrect because the Leveraged Foreign Exchange Trading Arbitration Panel is not part of the HKMA; it is an independent body established under the Securities and Futures Ordinance to resolve disputes related to leveraged foreign exchange trading. Therefore, only statements I and II are correct.

The Securities and Futures Commission (SFC) is the primary regulatory body overseeing the securities and futures markets in Hong Kong. Its regulatory objectives include maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry. The SFC also aims to protect investors, reduce systemic risk, and assist the Financial Secretary in maintaining financial stability. The SFC’s functions encompass licensing and supervising intermediaries, setting and enforcing market standards, and investigating and prosecuting market misconduct. The Securities and Futures Ordinance (SFO) empowers the SFC to regulate a wide range of activities, including leveraged foreign exchange trading. The SFC’s regulatory framework ensures that licensed persons meet the required standards of competence and integrity, and comply with the Code of Conduct. This framework is designed to foster investor confidence and maintain the integrity of Hong Kong’s financial markets, which is crucial for the stability and growth of the financial sector. The SFC also plays a vital role in preventing money laundering and terrorist financing within the securities and futures industry, further safeguarding the integrity of the market.

The Securities and Futures Commission (SFC) is responsible for maintaining and promoting the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry in Hong Kong. Its regulatory objectives include reducing systemic risk, protecting investors, and helping to maintain Hong Kong’s status as an international financial center. The SFC achieves these objectives through various means, including licensing and supervising intermediaries, setting and enforcing market standards, and educating investors. The Hong Kong Monetary Authority (HKMA), on the other hand, is the government authority in Hong Kong responsible for maintaining monetary and banking stability. While the HKMA also plays a role in the financial sector, its primary focus is not the direct regulation of securities and futures markets or leveraged foreign exchange trading in the same way as the SFC. The HKMA’s role in leveraged foreign exchange trading is more focused on the stability of the banking system and registered institutions that may be involved in such activities. Therefore, the statement that accurately reflects the SFC’s role is that it maintains and promotes the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures industry.

The Securities and Futures Commission (SFC) is tasked with maintaining and promoting the fairness, efficiency, competitiveness, transparency, and orderliness of the securities and futures markets in Hong Kong. This includes protecting investors, reducing systemic risk, and helping to maintain Hong Kong’s status as an international financial center. The SFC achieves these objectives through various means, including setting licensing requirements for intermediaries, supervising market participants, and enforcing regulations against market misconduct. The Hong Kong Monetary Authority (HKMA), on the other hand, primarily focuses on maintaining monetary and banking stability. While the HKMA also plays a role in the financial system’s regulation, its direct involvement in regulating leveraged foreign exchange trading is less extensive than the SFC’s. The SFO provides the legal framework for regulating securities and futures markets, including leveraged foreign exchange trading, while subsidiary legislation provides more specific rules and guidelines. Therefore, understanding the specific regulatory objectives of the SFC is crucial for anyone involved in leveraged foreign exchange trading in Hong Kong.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading in Hong Kong. Statement I is correct because the SFC is indeed responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria as outlined in the SFO and its subsidiary legislation. This includes assessing their competence, financial soundness, and integrity. Statement II is also correct. The SFC’s regulatory objectives include maintaining market integrity, promoting investor protection, and reducing systemic risk. These objectives are achieved through various measures, such as setting conduct of business standards, monitoring market activities, and enforcing regulations. Statement III is incorrect because the Hong Kong Monetary Authority (HKMA), not the SFC, primarily regulates registered institutions, including banks, although the SFC does have oversight regarding their securities-related activities. Statement IV is correct. The Securities and Futures Appeals Tribunal provides a mechanism for appealing certain decisions made by the SFC, ensuring procedural fairness and allowing for independent review of regulatory actions. Therefore, the correct combination is I, II & IV only.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to oversee and regulate leveraged foreign exchange trading activities in Hong Kong. The SFC’s regulatory objectives include maintaining market integrity, protecting investors, and reducing systemic risk. Statement I is accurate because the SFC is indeed responsible for authorizing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the required standards of competence and financial soundness as outlined in the SFO and its subsidiary legislation. Statement II is also correct; the SFC is tasked with monitoring and supervising the conduct of licensed corporations and individuals to ensure compliance with the Code of Conduct and other regulatory requirements, including those related to risk disclosure and client money handling, as detailed in the Securities and Futures (Client Money) Rules. Statement III is incorrect because while the HKMA regulates financial institutions, the direct oversight of leveraged foreign exchange trading firms falls under the SFC’s purview. Statement IV is incorrect as the Securities and Futures Appeals Tribunal handles appeals against certain SFC decisions, not the initial licensing decisions themselves. Therefore, only statements I and II accurately reflect the SFC’s responsibilities in licensing and supervising leveraged foreign exchange traders.

The Securities and Futures Ordinance (SFO) empowers the Securities and Futures Commission (SFC) to regulate leveraged foreign exchange trading activities in Hong Kong. Statement I is correct because the SFC is indeed responsible for licensing intermediaries engaging in leveraged foreign exchange trading, ensuring they meet the ‘fit and proper’ criteria as stipulated under the SFO and related guidelines. This includes assessing their competence, financial soundness, and integrity to protect investors and maintain market integrity. Statement II is also correct. The SFC’s regulatory scope extends to overseeing the conduct of licensed persons, including adherence to the Code of Conduct, risk disclosure requirements, and general business conduct standards. This oversight ensures that licensed individuals act in the best interests of their clients and maintain ethical and professional standards. Statement III is incorrect because while the HKMA regulates financial institutions, the direct regulation of leveraged foreign exchange trading firms primarily falls under the SFC’s purview. The HKMA’s role is more focused on the stability of the banking system. Statement IV is incorrect. The Securities and Futures Appeals Tribunal provides a venue for appealing certain decisions made by the SFC. Therefore, the correct combination is I & II only.