Hong Kong’s SFC faces staff shortages, increases budget to compete with financial firms
- Regulator lost 12 per cent of its staff last year, compared with 5.1 per cent in 2020, chairman says
- Commission sets aside more money to compete with private sector and for 4.5 pay rise to current staff
The commission lost 12 per cent of its staff last year, compared with 5.1 per cent in 2020, Tim Lui, its chairman, told a regular monthly financial affairs meeting at the Legislative Council on Monday. The most serious shortages were in junior professional staffing, which was down 25 per cent, he said.
“This been compounded by the limited ability to import talent from outside Hong Kong,” the SFC said in a document presented before lawmakers.
From 21-day quarantines to school breaks and lockdowns, the Hong Kong government’s zero-Covid rules had also begun to grind down many expatriate staff after two years, they added.
These include the 4.5 per cent pay rise, as well the cost of adding 30 new permanent staff and 50 two-year contract staff to handle needs around virtual assets as well as listings by special purpose acquisition companies (SPACs), which starting from January this year.
This will increase the total headcount at the commission to 1,018, as of the end of March 2023, 3 per cent more than current levels.
“The SFC now has more than 1,000 staff while the market turnover and initial public offerings are on a downwards trend. On average, each staff earns almost HK$1.6 million a year. Will the expansion lead to an increase in regulatory costs for the market?” asked Robert Lee Wai-wang, the lawmaker representing the financial services sector.
Despite its increased staff costs, the SFC expects to still have a surplus of HK$13.8 million in the coming financial year starting from April, thanks to a rising turnover.