SFC proposes enhancements to the Investor Compensation Regime


The Hong Kong Securities and Futures Commission (SFC) has informed the public that it has today launched a two-month consultation on proposed enhancements to the Investor Compensation Regime.

Key proposals include increasing the compensation limit from $150,000 to $500,000 per investor per default and covering northbound trading under Mainland-Hong Kong Stock Connect.

In addition, the SFC proposes to raise the trigger levels for suspending and reinstating the Investor Compensation Fund levies from $1.4 billion to $3 billion and from $1 billion to $2 billion respectively. This will not affect the levy suspension currently in place.

Another proposal would empower the SFC to make interim compensation payments in exceptional circumstances where delays may raise or increase systemic concerns.

These changes are needed as the Hong Kong markets have undergone substantial change since the last formal review of the Investor Compensation Regime,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “The proposed enhancements will benefit investors and the wider market and better equip the SFC to manage potential systemic risks.

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SFC proposes enhancements to the Investor Compensation Regime

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