Hong Kong SFC Raid Guidance Targets Banks amid Increased IPO Scrutiny

Hong Kong SFC raid guidance has been outlined to investment banks as the securities regulator increases scrutiny of the city’s booming share-sales market, Reuters reported.

Securities and Futures Commission enforcement chief Kenneth Luk told executives from around 10 brokers at an Aug. 17 industry meeting how firms should prepare for regulatory searches, according to two people familiar with the discussions.

Front-desk staff should be trained to recognise search warrants, investigators should be escorted to designated areas and private rooms should be made available for searches, the sources said.

Banks were also advised to ensure same-day access to employee emails and computer systems and to consider internal investigations if information about regulatory raids was leaked to the media.

The SFC said it had issued no written raid directives but periodically communicates its expectations and protocols to market participants as part of its regulatory engagement.