概要

On 31 October 2024, the Securities and Futures Commission (“SFC”) released its consultation conclusions (“Consultation Conclusions”) on the proposed Guidelines for Market Soundings (“Guidelines”). The finalised Guidelines were gazetted on 1 November 2024.

In response to market feedback, the gazetted Guidelines reflects significant revisions to the original proposal with several implications for both sell-side and buy-side firms involved in market soundings. Importantly, while the SFC made adjustments to address the concerns, it retained the contentious requirement that confidential information disclosed during market soundings must be treated as "market sounding information" even if it is not materially price sensitive.

Licensed Corporations (“LCs”) or Registered Institutions (“RIs“) must comply with the Guidelines by 2 May 2025. Intermediaries should review and enhance their policies and procedures to ensure compliance before the deadline.

內容

They key topics to be covered include:

• Key requirements and scope of application
• Implications for buy-side and sell-side firms
• How to implement the requirements, including key control enhancements required
• Industry insights and views of sound practice
• Remaining areas of uncertainty and how to navigate key risks and challenges
• Implementation timeline and immediate steps firms should be taking

對象

Senior management including MICs, ROs, Directors, Compliance Officers, Surveillance Officers and licensed individuals in the business/front-office involved in conducting market soundings from LCs or RIs (on both the buy-side and sell-side).