Opinion | SFC makes right move by acting as corporate regulator
Watchdog vows to keep a closer eye on the conduct of listed companies and their directors
The Securities and Futures Commission has made the right move in signalling it will keep a closer watch on the conduct of listed companies.
Chairman Carlson Tong Ka-shing said last week that the regulator had set up a team to actively review company announcements and reports with the aim of identifying problems early. In particular, companies with a history of losses or those announcing frequent restructurings will come under closer scrutiny.
Tong said the move was prompted by concerns over instances of serious corporate misconduct and the need for early detection of problems to limit damage to the market.
The SFC's more active stance is a welcome development, given the backdrop of uncertainty over regulatory roles in the city, with Hong Kong Exchanges and Clearing also a player here.
Investors will be happier to get their money back than see the culprits given a slap on the wrist
Since it was set up in 1989, the regulator has been tasked with cracking down on malpractice by brokers, fund managers or financial advisers licensed by it. It also devoted attention to developing the fund industry, while remaining vigilant against securities trading-related offences.