SFC to expand list of restricted entity names after consultation support
The SFC has concluded a consultation launched in June 2025 on tightening rules against unregulated entities using names that imply regulatory status. This briefing covers the final direction, the scope of new restricted titles, and the legislative path ahead for compliance and government affairs teams tracking Hong Kong's financial crime and markets perimeter.
- The SFC received nine submissions during the consultation, from industry associations, professional bodies, a bank and other interested parties.
- The expanded section 34 SFO list will cover titles now commonly used instead of 'exchange', terms describing SFO-regulated products, clearing-specific terms, and names or acronyms of well-known or established operations.
- A new provision under the AMLO will specifically target virtual asset trading platforms and virtual assets not related to securities or futures that may be traded or cleared through VATPs.
- The SFC agreed to respondents' request for a mechanism enabling faster updates to the restricted titles list and has amended its proposals accordingly.
- The SFC will introduce an amendment bill into the Legislative Council for consideration and approval, and has updated its FAQs on the proposed amendments.