The Securities & Futures Commission recorded a surplus of $355 million for the financial year ending March 31.

In 2005-2006, the commission's total revenue amounted to $852 million, with total expenditure of $497 million. Reserves of $1.2 billion were recorded at the year-end.

The figures were highlighted in its annual report for 2005-06, tabled at the Legislative Council today.

In the report, the commission's chairman Martin Wheatley said with the support of the Government, market bodies, market practitioners and the public, the commission can confidently meet the regulatory challenges in the next few years.

Major achievements

Last year, the commission mapped out measures to strengthen the derivative warrants market, reviewed the disclosure of interests requirements, and secured public support for securities margin financing reform.

It also proposed tighter regulation of sponsors, and continued work on statutory backing for important listing requirements.

On the enforcement front, the commission concluded 84 disciplinary inquiries and took action against 98 companies and people. It also disciplined a sponsor for due-diligence failure.

A securities analyst was banned from the industry for five years for conflicts of interest and the commission prosecuted 72 companies and people.

During the year, the commission identified 18 cases of suspect warrants-market activities for investigation, investigated 27 cases involving listed companies, and referred 24 cases to the Police.