SFC Market Sounding Guidelines Compliance Services
The Securities and Futures Commission (SFC) in Hong Kong has introduced the Market Sounding Guidelines, effective May 2, 2025, requiring firms to adopt new compliance measures.
These guidelines establish regulatory standards for SFC-licensed and registered intermediaries involved in Hong Kong market soundings, aiming to enhance global compliance and safeguard sensitive business information.
What are the SFC Market Sounding Guidelines?
The SFC Market Sounding Guidelines are a set of regulatory principles and requirements issued by the Securities and Futures Commission (SFC) in Hong Kong. These guidelines apply to individuals and firms licensed or registered to carry out regulated activities in Hong Kong when engaging in market soundings. They govern the process of obtaining or communicating information related to potential market activities, while ensuring compliance with laws around insider trading and Material Non-Public Information (MNPI).
Tailored Solutions for SFC Market Sounding Compliance
We offer a comprehensive suite of expert services to support your compliance with the SFC Market Sounding Guidelines:
- Policy Development: We help to update your internal policies and procedures to reflect the latest regulatory guidelines, ensuring robust governance and compliance.
- Training Programs: Our training sessions equip your investment teams with the knowledge to handle market-sounding information and understand the risks associated with MNPI.
- Documentation Support: We assist in implementing comprehensive documentation and audit trails for market-sounding interactions to ensure transparency and accountability.
- Monitoring Processes: Our team of APAC Compliance Solutions experts help establish trading restrictions and pre-clearance processes to manage potential trading risks associated with market soundings.
- Collaboration with Sell-Side Firms: We facilitate communication with sell-side counterparties to ensure compliance with SFC guidelines and clarify confidentiality and disclosure expectations.
- Global Compliance Alignment: In addition to verifying compliance in Hong Kong, we also ensure conformity with international regulations. We conduct cross-jurisdictional reviews to align your market-sounding practices with global regulatory standards.
Why Choose Waystone
At Waystone, we are uniquely positioned to assist firms in navigating the complexities of the SFC guidelines so they can remain compliant in Hong Kong’s financial markets. With over 100 compliance specialists globally, we possess extensive expertise in regulatory compliance for fund managers, particularly in the APAC region. Our pragmatic and tailored compliance solutions are designed to align with both local and international standards, ensuring that our clients meet their regulatory obligations efficiently.
If you are looking to stay ahead of regulatory expectations and strengthen your compliance foundation in Hong Kong, contact your Waystone Compliance Solutions representative or reach out to us below.