Who is the main regulator for authorized financial institutions (AFI) in Hong Kong?

• A. HKMA
• B. SFC
• C. MPFA
• D. Financial Secretary

Answer: (A)

AFI refers to Authorized Financial Institutions, a category that falls under the prudential supervision of Hong Kong’s central banking authority. The Hong Kong Monetary Authority is the main regulator because its core role is to license, supervise, and enforce the safety and soundness of banks and other authorized banking-type institutions in Hong Kong. It sets capital and liquidity standards, conducts ongoing supervision, and ensures risk management practices across these institutions to protect depositors and maintain financial stability. The other entities mentioned have different scopes: the Securities and Futures Commission oversees securities and futures markets and firms, the MPF Authority handles retirement schemes, and the Financial Secretary is a government figure, not a day-to-day banking regulator. So the regulator responsible for AFI is the Hong Kong Monetary Authority.