Which statement about SFC independence is true?

• A. It is independent from the government civil service
• B. It is part of the government civil service
• C. It reports to the Financial Secretary
• D. It is a private company

Answer: (A)

Independence of the regulator from the civil service is what ensures objective enforcement of market rules. The Securities and Futures Commission is established by law as its own statutory body with its own board and executive team, separate from government departments. This design lets it decide and enforce market regulation based on its statutory mandate and market considerations, without being pulled into civil service priorities or political directions. While it receives government funding and remains answerable to the government and Parliament for its performance, it operates independently from the government civil service, which is why the statement about its independence is true. It is not a part of the civil service, nor a private company.