In a keynote address at the 10th Annual Institute on Corporate and Securities Law in Asia, Hong Kong Securities and Futures Commission Executive Director of Enforcement Michael Duignan set out a regulatory philosophy of using any lawful and workable route that produces timely, efficient outcomes. This may include early market guidance, voluntary resolutions and settlements rather than relying exclusively on lengthy disciplinary, tribunal or court proceedings, although conventional enforcement remains necessary in some cases. Duignan illustrated the approach through previously announced measures and cases. These included capacity and competency requirements for initial public offering sponsors, the voluntary licence surrender of a structurally deficient brokerage, and settlements designed to compensate affected minority shareholders. PricewaterhouseCoopers Hong Kong agreed to pay HKD 1 billion without admitting liability in connection with its audits of China Evergrande Group, while the Giordano International settlement could provide up to HKD 1.5 billion to shareholders affected on the relevant breach dates. Duignan clarified that licensed corporations cannot settle SFC disciplinary proceedings without accepting liability because the SFC has already determined that a breach occurred at that stage. The speech also defended trading suspensions as protective measures where unreliable information prevents an orderly and informed market. Drafting continues on legislative amendments that would allow the SFC to impose conditions, often involving additional disclosure, as an alternative to suspension. A court judgment on the challenge to the PricewaterhouseCoopers Hong Kong settlement is expected around the end of October 2026.

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