SFC Proposal for Amendments to the SMLR to Enhance Powers Addressing Corporate Misconduct

On Friday, 28 March 2025, the Securities and Futures Commission (the “SFC”) issued a consultation paper inviting comments on proposed enhancements to the Securities and Futures (Stock Market Listing) Rules (“SMLR”) addressing IPO cases and post-IPO matters. The proposals are aimed at enhancing the SFC’s ability to more effectively and efficiently address potential corporate misconducts. These proposals seek to strengthen the regulatory framework, allowing the SFC to take earlier, more targeted investigation and intervention in the more serious cases to prevent or reduce financial harm to the investing public. They supplement the traditional enforcement actions which are undertaken after the mischiefs have already taken place.

We have set out in this bulletin the key proposals. The deadline for submitting comments on the proposals is 23 May 2025.

Please feel free to get in touch should you wish to discuss these SFC proposals.