Regulatory tools
We deploy a range of regulatory tools to carry out our work, including regulatory initiatives, which are diagnostic, monitoring, proactive, sanctioning or remedial in nature.
- Diagnostic tools to identify and assess risks
We use diagnostic tools to identify licence applicants who could pose an unacceptable risk to investors. Licensed corporations are required to submit monthly financial resources returns to us. We use a set of assessment indicators to assess the financial risk exposure of licensed corporations.
- Monitoring tools to check or track identified risks
We conduct both off-site monitoring and on-site inspections to identify instances of intermediary misconduct. We also monitor trading activities in the securities and futures markets on a daily basis to detect possible market misconduct.
- Proactive tools to protect markets
To prevent harm to investors and protect our markets, we directly intervene at an early stage in suspected cases of serious misconduct in listing applications and corporate transactions (eg, object to a listing, impose a suspension of trading of securities).
- Sanctioning and remedial tools to deal with misconduct and redress losses
We may impose disciplinary sanctions where intermediary misconduct has been proven. In addition, the investor compensation scheme operates when an intermediary defaults and causes loss to investors.
Last update: 19 Nov 2019