Regulatory Alerts2022-09-01
Added · Updated
Circular Issued by the Securities and Futures Commission to Licensed Corporations on Review of Online Brokerage, Distribution and Advisory Services
The Securities and Futures Commission issued this circular to summarize key compliance deficiencies identified during a review of licensed corporations providing online brokerage, distribution, and advisory services. The regulator highlighted critical failures in non-face-to-face client onboarding, including inadequate identity verification, as well as insufficient product due diligence, misleading marketing clauses, and inadequate cybersecurity measures. Licensed corporations are required to review their systems and controls to ensure proper client risk profiling, robust information security, and adequate resource planning for handling client inquiries and complaints.
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