Circular Issued by the Securities and Futures Commission on Best Execution

Our Ref: B1/15C G16/1C 9 February 2018 The Chief Executive All Registered Institutions Dear Sir / Madam, Circular Issued by the Securities and Futures Commission (“SFC”) on Best Execution I am writing to draw your attention to the attached circular issued by the SFC (“the Circular”) on 30 January 2018 setting out guidance on the standards of conduct and internal controls in delivering best execution. The SFC also issued on the same day “Report on the Thematic Review of Best Execution” (“the Report”) which shares some key observations identified in the SFC’s recent thematic review of licensed corporations on best execution and outlines examples of good practices. Registered institutions should review and enhance their policies, controls and management supervision as necessary, having regard to the guidance set out in the Circular and the Report. Yours faithfully, Alan Au Executive Director (Banking Conduct) Encl. c.c. SFC (Attn: Ms Julia Leung, Executive Director (Intermediaries))