The Securities and Exchange Commission (SEC) has revised the regulations governing securities and derivatives business operators and business changes to strengthen responsible business taking into account investors’ best investment outcomes and to enhance supervisory efficiency in response to the evolving business environment.
The SEC has revised the regulations concerning responsible business for securities and derivatives business operators by emphasizing an outcome based supervisory approach alongside existing standards of integrity, competency, and prioritizing investors’ interests. The revisions require business operators to establish oversight mechanisms for their services covering products and services, product and service pricing and value for money, customer understanding, and customer care.
The board of directors of each business operator is also required to be accountable for overseeing business operations (board accountability). In addition, the SEC has amended the regulations for reporting business changes, requiring the business operators to notify the SEC prior to implementation in order to enhance clarity and supervisory efficiency.
Accordingly, the SEC has issued two notifications related to these regulatory amendments, which will take effect from 1 April 2026 onwards. In addition, the SEC has developed a Responsible Business Handbook for securities and derivatives business operators to explain the SEC’s expectations in detail and to provide guidance for appropriate implementation.
