Regulatory Alerts2014-03-25
Added · Updated
Circular Issued by the Securities and Futures Commission on Selling of Complex Bonds and High-Yield Bonds
Licensed corporations selling complex bonds and high-yield bonds must conduct proper product due diligence, explain key features and risks to clients, implement suitable assessment processes, disclose trading profits from back-to-back transactions, and maintain adequate supervisory controls. The Securities and Futures Commission requires firms to critically review policies and procedures to address identified deficiencies in product understanding, client disclosure, suitability matching, and post-trade reviews. Regulatory action will be taken against licensed corporations found to have breached these selling practices requirements.
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