Hong Kong SFC signs MoU with FINRA dealing with cross-border entities

The Securities and Futures Commission (SFC) of Hong Kong today has announced the regulator has entered into a memorandum of understanding (MoU) with the Financial Industry Regulatory Authority of the United States (FINRA) concerning mutual assistance in the supervision and oversight of regulated entities that operate on a cross-border basis in Hong Kong and in the United States.

Through the MoU, which covers financial market participants or other entities that are regulated by the SFC or FINRA, the SFC and the FINRA express their willingness to cooperate with each other in the interest of fulfilling their respective regulatory mandates.

Operating as a “letter of intent” a memorandum of understanding is a nonbinding agreement between two or more parties outlining the terms and details of an understanding, including each parties’ requirements and responsibilities. An MOU is often the first stage in the formation of a formal contract.

The Hong Kong SFC is one of the oldest securities and futures regulators in the world. It is responsible for the review and issuing of all Hong Kong FX licenses and has the power to make decisions regarding activity of the regulated broker firms. So it will be interested to see if an MoU is also made between the NFA and CFTC at some point in the future, who regulates FCMs and FX companies within the U.S.


The MoU, came into effect on 9 May 2016

To read the full details on the MoU click here.

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