SFO: Securities and Futures Ordinance
The Securities and Futures Ordinance (Cap. 571, in force since 2003-04-01) is Hong Kong's core capital-markets statute. It creates the SFC's single-licence regime for regulated activities (Types 1-10, 13, e.g. dealing in securities, asset management, automated trading services) and governs substantial-shareholder approvals, market misconduct and disclosure.
At a glance
| Official title | Securities and Futures Ordinance1 |
|---|---|
| English title | Securities and Futures Ordinance |
| Citation | Cap. 571 (enacted as Ord. No. 5 of 2002) |
| Jurisdiction | Hong Kong |
| Type | act |
| Adopted | 2002-03-13 |
| In force from | 2003-04-01 |
| Status | in force |
Full text
Official full text: Securities and Futures Ordinance (PDF, en)2 · 1,370 KB · file checked 2026-09-24
Official page: elegislation.gov.hk1 · archived copy
Summary
The SFO is Hong Kong's principal statute for securities and futures markets, consolidating 10 earlier ordinances. Part II establishes the Securities and Futures Commission (SFC) and its objectives. Part III covers exchange companies, clearing houses and automated trading services. Part V (from s.114) creates a single-licence regime: no person may carry on a business in a 'regulated activity' (Schedule 5: Types 1-9 as originally enacted, later expanded to Types 10 and 13 by amendment) without an SFC licence or registration, subject to a 'fit and proper' test (s.129) and prior SFC approval before a person becomes a substantial shareholder of a licensed corporation (s.132; the 10%/35% shareholding and voting-power thresholds are defined in Schedule 1 Part 1 s.6). Later Parts cover market misconduct, disclosure of interests, and investigations. The AMLO (Cap. 615) separately layers a VASP/VATP licensing regime for virtual asset trading platforms onto this framework.
Summary written by the Atlas from the official text; the law itself prevails.
Main articles
- s.114: Restriction on carrying on business in a regulated activity without a licence or registration.
- s.116: Corporations must be licensed by the SFC to carry on regulated activities.
- s.129: Sets the 'fit and proper' test the SFC applies to licence applicants.
- s.132: SFC approval required to become or continue as a substantial shareholder of a licensed corporation.
- Schedule 1 Part 1 s.6: Defines 'substantial shareholder': >10% shares/voting power, or 35%+ indirect chain of control.
- Schedule 5: Lists the regulated activities (Type 1-9 as enacted; Types 10 and 13 added later by amendment).
Licences it governs
- IF · Hong Kong
Type 1 Licence for Dealing in Securities
SFC
- IF · Hong Kong
Type 2 Licence for Dealing in Futures Contracts
SFC
- IF · Hong Kong
Type 4 Licence for Advising on Securities
SFC
- IF · Hong Kong
Type 6 Licence for Advising on Corporate Finance
SFC
- IF · Hong Kong
Type 7 Licence for Providing Automated Trading Services
SFC
Regulators that apply it
Sources
- elegislation.gov.hk: cap571 · retrieved 2026-09-24
- ird.gov.hk: gld eng Ord. 5 of 2002 Securities and Futures Ordinance (PDF) · retrieved 2026-09-24
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