SFC consults on market sounding guidelines

The SFC has launched a consultation on proposed guidelines for market soundings. These guidelines aim to provide clarity on regulatory expectations and help intermediaries comply with the principle of conducting business activities honestly, fairly, and in the best interests of clients and market integrity during market soundings. The proposals require intermediaries to establish robust governance, effective policies, and internal control procedures to prevent the misuse and leakage of non-public information. They must also keep records of market soundings and adhere to specific requirements based on their roles as sell-side or buy-side participants. The SFC emphasizes the importance of upholding market integrity and maintaining strict confidentiality of non-public information. The consultation follows a thematic review of market soundings conducted by the SFC in early 2022, taking into account local and overseas market practices, regulatory requirements, and feedback from intermediaries. Interested parties can submit their comments until 11 December 2023 through various channels provided by the SFC.

Consultation paper: https://apps.sfc.hk/edistributionWeb/api/consultation/openFile?lang=EN&refNo=23CP6

Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR114


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