SFC wants to play bigger role in vetting new listings but won’t replace HKEX as front line regulator, says its chairman
Using football analogy, Carlson Tong says he wants to expand SFC from goalkeeper to defender and midfielder, while HKEX remains as striker
The Securities and Futures Commission has no intention of taking over the Hong Kong Exchanges and Clearing’s front-line role in regulating new listings and the recent proposals are aimed at involving the SFC in the listing process at an earlier stage, according to chairman Carlson Tong Ka-shing.
“The SFC now acts only as a goalkeeper in a soccer match. The proposed changes will allow it to play the roles of a defender and midfielder, while HKEX will remain as the striker,” Tong told the South China Morning Post.
The SFC and HKEX last month jointly launched a three-month consultation to collect the views of the market on changing the listing process.
Under the proposals, the SFC will no longer vet simple applications and will leave the job to the HKEX and market participants.
The proposals also call for the establishment of a listing regulatory committee and a listing policy committee, with equal representation from the SFC and HKEX.
The regulatory committee will handle listing applications deemed complicated by the HKEX’s listing division. The other panel will decide on policies and will meet every three months. Both committees will require a majority vote in making any decisions.