Securities and Futures Commission chairman Andrew Sheng said the softening of its position on how to handle cases concerning breach of licensing rules involving executives and directors in brokerages would keep Hong Kong legislation in line with other international financial centres.
On Monday, the Composite Securities and Futures Bill was amended, putting the burden of proof back on the SFC rather than on the defendants, as the SFC originally proposed, in cases concerning non-compliance.
'The bill's objective is to bring local regulations in line with other markets, rather than making them stricter,' Mr Sheng said. He said the reversal showed that the SFC was capable of change and would take the market's advice if it was in the interests of Hong Kong. But he said the move should not be interpreted as pandering to the whims of the investment community.