SFC sounds alarm over unauthorised investment schemes

Offering unauthorised investment schemes are considered an offence in Hong Kong.

The Securities and Futures Commission (SFC) has warned the public over collective investments schemes (CIS) that it has not yet authorised.

“Unauthorised investment arrangements are highly risky and investors may lose all their investments,” Christina Choi, SFC’s Executive Director of Investment Products, said.

“Investors are urged to check the new alert list and find out whether the arrangement is authorised by the SFC before investing.”

The SFC reminded that offering unauthorised CIS to the public or to the market as well as distributing interests in CIS without a license from the Commission is considered an offence.

Investment arrangements that have come to the SFC’s attention and display certain characteristics of a CIS will be included on a new Suspected Unauthorised CIS Alert List.

These arrangements may involve overseas real estate or non-conventional assets and investments such as digital tokens and initial coin offerings. 

Moreover, the commission will continue to work with SFC subsidiary Investor and Financial Education Council to strengthen investor education about CIS and associated risks.