Circular Issued by the Securities and Futures Commission Regarding Code of Conduct Requirements with respect to Derivative Products

HONG KONG MONETARY AUTHORITY

Banking Conduct Department 
Our Ref: B1/15C 
016/lC 
2 September 2010 
The Chief Executive 
All Registered Institutions 
Dear Sir / Madam, 
i!l n !J/! "1 ms 
Circular Issued by the Securities and Futures Commission (SFC) Regarding 
Code of Conduct Requirements with respect to Derivative Products 
I am writing to draw your attention to a circular issued by the SFC on 31 August 2010 
("the SFC Circular"). The SFC Circular reminds intermediaries to ensure 
compliance with the obligations under the SFC Code of Conduct when providing 
services to clients with respect to derivatives products, including investor 
characterization under the new paragraph 5.lA of the Code of Conduct which will 
come into effect in June 2011. 
A copy of the SFC Circular is attached at Annex. Registered institutions are 
reminded to put in place appropriate measures to ensure that their staff are familiar 
with the risks and features of the investment products and comply with the applicable 
requirements when serving their clients. 
Yours faithfully, 
Meena Datwani 
Executive Director (Banking Conduct) 
Encl. 
c.c. SFC (Attn: Mr Stephen Po, Senior Director of Intermediaries Supervision) 
55th Floor, Two International Finance Centre, W rl! i:p lit~ ~t 1!r8 ~ [;jl)J ~f ~ ill i:p ,i:,,2 AA 5 5 tl 
8 Finance Street, Central, Hong Kong i!t !~: (852) 2878 8100 ~ ~: (852) 2878 2100 
Tel: (852) 2878 8100 Fax: ;(852) 2878 2100 
E-mail: Meena_Datwani@hkma.gov.hk 
Website: www.hkma.gov.hk 
i!t mj): Meena_Datwani@hkma.gov.hk 
~ ±it : www.hkma.gov.hk