Enhancements to the Competency Framework for Intermediaries and Individual Practitioners by the Securities and Futures Commission in Hong Kong

Enhancing the professional standards of market practitioners is crucial to maintaining quality markets in view of the rapidly evolving financial market. After receiving overwhelming support from the industry for its consultation paper, the Securities and Futures Commission (SFC) enhanced the Competency Framework for Intermediaries and Individual Practitioners in Hong Kong to cope with the ever-changing regulatory landscape, evolving financial markets, and new financial products. The enhancements cover a myriad of aspects and range from clarifying the required corporate finance experience for eligibility to offer advice on matters in relation to the Codes on Takeovers and Mergers and Share Buy-Backs to including newer topics such as Fintech as a relevant topic for continuous professional training purposes. Given the tremendous scope of the coverage of the enhancements, a scope that has rarely been seen in recent years, and the far-reaching impact of the revamp, we study the details of the enhancements to gain a clear picture of the revised Competency Framework, the relevant issues involved, and the rationale behind the change.