Clifford Chance
SFC consultation conclusions on proposed amendments to the Code of Conduct
28 May 2012
On 20 May 2012, the Securities and Futures Commission (SFC) published its consultation conclusions on proposals to amend the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Code) in relation to the establishment of the Financial Dispute Resolution Centre Ltd (FDRC) and the enhancement of the regulatory framework. This follows from its two-month consultation which ended on 9 January 2012. Our previous briefing on the consultation paper can be found here.
The FDRC will be responsible for the administration of the Financial Dispute Resolution Scheme (FDRS) to handle monetary disputes not exceeding HK$500,000 (per case) between financial institutions and their clients by way of mediation and, failing which, arbitration. It will commence operations in June 2012.
The amendments to the Code in connection with the establishment of the FDRC will come into effect on 19 June 2012 and the "miscellaneous amendments" to the Code, that are not specific to the FDRC but are instead of general application will come into effect on 1 December 2012.
