. /.  WORLD TRADE  
ORGANIZATION  S/C/N/320 
28 January 2005  
 
(05-0353) 
Council for Trade in Services Original:   English 
  
 
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE 
GENERAL AGREEMENT ON TRADE IN SERVICES 
 
 
 The following notification, dated 26 January 2005,  from the delegation of Hong Kong, China, 
is being circulated to the Members of the Council for Trade in Services. 
 
_______________ 
 
 
1. Member notifying: 
Hong Kong, China 
 
2. Notification under: 
Article III, paragraph 3 of the General Agreement on Trade in Services 
 
3. Date of entry into force: 
The Securities and Futures Ordinance (Cha pter 571) (“SFO”) be came effective on 
1 April 2003.  
Duration:  
 Indefinite  
 
4. Agency responsible for implementation  and enforcement of the measure: 
The Securities and Futures Commission (SFC) is the primary agency responsible for 
implementation and enforcement of the SFO.  Th e website of the SFC can be accessed from: 
 
http://www.hksfc.org.hk/eng/html/index.html
 
 
5. Complete description of the measure1 indicating the modes of supply covered, the effect 
on trade in services (e.g., restrictions/liberalization measures) and the impact of the 
measure on commitments in the Member's schedule and Article II (MFN) exemption 
list, if relevant: 
Mode of supply covered : commercial presence and presence of natural persons 
 Effect on trade in service : prudential and regulatory meas ures which are non-discriminatory 
and competitively neutral.  
 
                                                     
 
1 Including international agreements, recognition measures or other types. S/C/N/320 
Page 2  
 
Description :   
 
The Securities and Futures Ordinance (SFO), wh ich consolidated the previous legislation 
governing the operation of the securities, futu res and non-bank retail leveraged foreign 
exchange markets in Hong Kong, came into effect on 1 April 2003.    
New measures or changes that may have effect on trade in services: 
 (a) Providers of automated trading services, whose operations resemble that of an 
exchange and may have syst emic impact on the market, may apply for authorisation 
(Part III) while those whose operations resemble  that of a securities or futures dealer 
may seek a licence (Part V).  
(b) A new term “collective investment scheme” has been introduced to embrace existing 
financial products and be flexible enough to capture new products and ensure their 
proper regulation (Part IV). 
(c) A simplified licensing regime offers mo re convenience to brokers, investment 
advisers etc, who need only to have one li cence to carry on all the regulated activities 
that they are eligible to conduct. Banks are required to be registered to carry on most 
regulated activities (but not securities margin financing or leveraged forex trading since these are core banking functions regulated under the Banking Ordinance) (Part V). 
(d) Tighter threshold for disclosure of interests in listed companies (a shareholder 
owning  5%, down from the previous 10%, must disclose) and more timely notification and more notifiable items (Part XV).  
 
6. Members specifically affected, if any: 
 None 
 
7. The texts are available from: 
The full text of the Securities and Futures Ordinance is available from: 
 
http://www.gld.gov.hk/cgi-
bin/gld/egazette/gazettefiles.cgi?lang=e&y ear=2002&month=3&day= 28&vol=06&no=13&gn
=5&header=1&part=0&df=1&nt= s1&newfile=1&acurrentpage=12&agree=1&gaz_type=ls1   
 
 Office of the Financial Services Branch 
Telephone : (+852) 2527 4242 
Telefax: (+852) 2294 0460 Website: http://www.info.gov.hk/fstb/fsb/
 
E-mail Enquiry: enq@fstb.gov.hk  
 
 The document is also available from the Secretariat and Hong Kong, China’s GATS enquiry 
point.  
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