Circular Issued by the Securities and Futures Commission to Licensed Corporations on Review of Online Brokerage, Distribution and Advisory Services

Our Ref: B1/15C G16/1C 1 September 2022 The Chief Executive All Registered Institutions Dear Sir / Madam, Circular Issued by the Securities and Futures Commission to Licensed Corporations on Review of Online Brokerage, Distribution and Advisory Services I am writing to draw your attention to the attached circular issued by the Securities and Futures Commission (“SFC”) (“the Circular”), which shares observations and compliance issues identified in the SFC’s review of business models of licensed corporations which provided online brokerage, distribution and advisory services and their compliance with regulatory requirements when onboarding clients and distributing or advising on investment products via their online platforms. Registered institutions (“RIs”) which provide online brokerage, distribution and advisory services can make reference to the regulatory concerns and reminders on the expected regulatory standards set out in the Circular, so as to ensure that their online platforms are properly designed and operated in compliance with all applicable rules and regulations. Yours faithfully, Alan Au Executive Director (Banking Conduct) Encl. c.c. SFC (Ms Julia Leung, Deputy Chief Executive Officer and Executive Director (Intermediaries))