Hong Kong SFC advances restrictions on misleading entity names and faster updates to restricted titles

The Hong Kong Securities and Futures Commission (SFC) has published consultation conclusions confirming plans to widen restrictions on names that falsely imply regulatory status or an association with established financial market operators. Following broad support for its June 2025 proposals, it will proceed with amendments to the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). A revision would place restricted titles in statutory schedules that the SFC could amend through subsidiary legislation, allowing faster updates without a new amendment bill. The expanded SFO restrictions would cover financial product terminology combined with trading or clearing designations, such as “securities trading platform” or “tokenised assets exchange,” including closely resembling titles. The new AMLO provision would focus on virtual asset trading platforms and virtual assets that are not securities or futures contracts. The SFC retained “tokenised assets” in the proposed list, stressing that the restriction concerns combined titles rather than that term alone. Names or acronyms implying an association with established operators would also be covered. Where a title is restricted under both ordinances, approval would be required under both, although applicants could submit a single application. The SFC clarified that it can effectively restrict names only for persons operating or having a physical presence in Hong Kong. The SFC will work with the Hong Kong government to finalise the legislative amendments before introducing them into the Legislative Council for consideration and approval. It has also updated its frequently asked questions to explain the proposed requirements.