On 19th May 2026,The Securities and Futures Commission (SFC) issued a regulatory alert regarding sophisticated secondary fraud schemes exploiting the name of Hong Kong’s Investor Compensation Fund (ICF). Latest cases showed that syndicated fraudsters are targeting individuals who previously incurred investment losses, falsely promising asset recovery under the ICF. Impersonating SFC executives or legal professionals, these bad actors solicit upfront “deposits” or “handling fees” to process the purported restitution, resulting in double victimization.Therefore,The SFC clarified that the ICF operates under strict statutory mandates governed by the Securities and Futures Ordinance. Crucially, the fund charges zero fees for claim lodgments, and eligible compensation applies exclusively to monetary losses resulting from defaults by licensed intermediaries or authorized financial institutions in Hong Kong. The regulatory body emphasized that the ICF provides no coverage for market price fluctuations, asset underperformance, or unlicensed entities, reminding the public that official compensation processes never require advanced capital transfers.
Sources:https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=26PR71