It's not a matter of “If”, but “When”. And you had better be prepared.
That was the key message of this joint presentation which reviewed what licensees need to know and what they need to do when the SFC comes knocking, or more likely, telephoning in the first instance. Jane reviewed the scope of the SFC's inspection powers under s180 of the Securities and Futures Ordinance (SFO), which include entering premises to inspect, copy, record, and make enquiries about records/documents and transactions/activities. Inspections are initiated to check licensee compliance with the SFO and statutory notices and requirements and licence conditions. Jane stated that the licensee's goal should be to get through the inspection process quickly and come out the other end clean, without any major findings.
To do this, Yan-Yan provided practical tips for preparing before “the call”, such as anticipating the SFC's document request list, and after “the call”, such as clarifying with the SFC the specific purpose of the inspection, how to conduct effective meetings with the SFC inspectors, briefing staff and anticipating problems.