An analysis of the functions of the Securities and Futures Commission ordinance as a device for ensuring the protection of investors in Hong Kong

The present study is concerned with the analysis of a piece of economic legislation - the Securities and Futures Commission Ordinance (SFC) of Hong Kong - within the theoretical framework of the theories of economic regulation, testing the legislation's stated objective of investor protection for the securities industry. Principally two sets of theories attempt to explain the impact of economic regulations. They are the ·Public Interest Theory" and the "Capture Theory". The former is largely of a normative nature. It stipulates that in case of market inefficiency economic regulations are enacted for protecting the interest of the general public. [Continues.]