The Hong Kong Securities and Futures Commission will be working in tandem with the government to provide greater protection for investors following several brokerage closures in the region, according to Secretary for Financial Services, Stephen Ip Shu-kwan.
Speaking to the South China Morning Post at a trade fair on Wednesday, the Financial Services minister revealed that following the closure of Lawsons Securities, and several other small brokerages in the SAR over alleged irregularities, the SFC will be increasing its regulation of the region's brokers.
New measures will include the establishment of an enhanced compensation fund offering HK$150,000 per client in the event of a brokerage closure. Currently, the compensation fund is capped at HK$8 million per brokerage, irrespective of the size of the organisation, or the number of clients.
Hong Kong Exchanges and Clearing also offered its assistance this week, according to the SCMP, stepping up the promotion of a service whereby investors can monitor activity in their trading accounts for around HK$10 per month.
The newspaper revealed that although the SFC declined to comment in any great detail yesterday on Mr Ip's remarks, it did confirm that the new compensation fund will be put in place in the near future.
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