Under the Securities and Futures Ordinance, which body grants the SFC the power to make rules?

• A. Legislative Council
• B. Financial Secretary
• C. Corporate Officers
• D. General meeting of members

Answer: (A)

The SFC’s power to make rules comes from the law that established it: the Securities and Futures Ordinance. That ordinance is enacted by Hong Kong’s Legislative Council, which is the body that creates statutes. Once the SFO is in effect, the SFC is authorized to issue rules to regulate the securities and futures markets under that statute. The other bodies listed don’t grant this authority: the Financial Secretary doesn’t provide the rule-making power itself, and corporate officers or a general meeting of members aren’t the source of regulatory powers for the SFC.