Hong Kong's Securities and Futures Commission is pursuing compensation for victims of securities misconduct instead of focusing on fines. The regulator has secured HK$2.5 billion in settlements over recent months. This follows practices in the US, UK and Europe.
On a warm Saturday in early May hundreds of Hongkongers queued for hours at Edinburgh Tower in Central. The Securities and Futures Commission has aligned with international regulators by seeking monetary redress for investors harmed by misconduct.
Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, said regulators are likely to continue using settlement as a strategy. He noted that Hong Kong lacks US-style class-action lawsuits, leaving small investors to rely on the SFC.
Traditional penalties such as heavy fines or licence suspensions remain available but the new emphasis aims to strengthen market integrity without lengthy legal proceedings.
