Hong Kong SFC Proposes Further Restrictions on Misleading Names to Enhance Investor Protection

The Hong Kong Securities and Futures Commission today launched a consultation aimed at restricting unregulated entities from improperly using names that may mislead the public into believing they are regulated institutions. In response to recent developments, the SFC proposes to expand the existing list of restricted titles under the Securities and Futures Ordinance. In addition, the proposed measures would extend the scope of restrictions to commonly used terms that carry a similar meaning to "exchange," as well as words that generally refer to certain financial products and platforms regulated under the Securities and Futures Ordinance. The proposals would also cover titles that may imply an association with existing exchanges, virtual asset trading platforms, and other similar institutions.