Regulatory Alerts2009-06-23
Added · Updated
Circular Issued by the Securities and Futures Commission Regarding Risk-disclosure Duties of CLN Issuers
The Securities and Futures Commission issued this circular to issuers of retail credit-linked notes, urging them to maintain robust and timely risk disclosures relevant to current market conditions. The regulator emphasizes that enhanced and easy-to-understand information regarding credit risks, such as overseas corporate failures and underlying collateral defaults, is essential for restoring market confidence and enabling investor risk analysis. Issuers are advised to provide specific details including credit downgrades, loss calculations, and early redemption thresholds to ensure distributors and investors can conduct ongoing assessments.
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