How does SFC Contribute in Economic Development?

If you are someone who considers himself novice in the field of financial trading, you need to know how the SFC (securities and futures commission) functions and what kind of role it plays in the world of finance and investing. The mission of this organization is to protect the interest of investors, look to the fact that orderliness and fairness is maintained in the industry, and the capital formation is facilitated along with efficient markets. SFC provides licensing to brokers and financial institutes.

As part of its mission it believes that to sustain and ensure economic growth, capital formation must take place. It also works to protect the savings and promote a growing economy. A growing economy is what improves the standard of living and makes room for more jobs. SFC provides protection to the investors especially those who are the first times who may be planning stuff like college funds and real estate mortgages. Other than licensing SFC also offer registration to newly established companies and financial institutes which legally allows them to conduct financial activities.

Since the world of investment is very complex, it is imperative for investors to be absolutely sure of what they are getting into and do their research. They should question about things which are difficult to understand. When it comes to making passive income via trading of stocks, securities, bonds and other financial instruments, there is no guarantee about when the value may go up or down. If the person is very particular about the security, then he should stick to the banking only, because funds deposited with banks are guaranteed by federal government.

SFC not only offers licensing and conducts registration process of companies, as part of its functions it also requires all the companies to disclose any and all information to the public that are important for investors to make informed decisions. All the investors must have access to some basic facts before they could make investment related decision. The idea is that a person can only be sure about making sound decisions if he has access to comprehensive, timely, accurate, and updated information on which to base his judgment about when to buy or sell a financial item or keep it on hold.

Since capital formation is so crucial for economic growth of nation it works with major investors and participants to address their problems. It works to ensure investors’ protection against fraud. It ensures disclosure of information, and fair dealings. For that it oversees brokers, securities exchanges, dealers, and investment advisors. Infractions like accounting fraud, insider trading and releasing untrue information about securities are brought to SFC.

If you want to get a startup or a well-established corporate registered here, then you must have countless questions in mind. This section explains a few of the commonly asked questions related to companies registry in Hong Kong.