Circular on SFC Report on Findings of Second Round of Thematic Inspection of Licensed Investment Advisers

Our Ref.: Encl. c.c. Circulars 01 Jun 2007 The Securities and Futures Commission's Report on Findings of Second Round of Thematic Inspection of Licensed Investment Advisers (the Report) B1/15C G16/1C 1 June 2007 The Chief Executive All Registered Institutions Dear Sir/Madam, The Securities and Futures Commission's Report on Findings of Second Round of Thematic Inspection of Licensed Investment Advisers (the Report) I am writing to draw your attention to the Report recently issued by the Securities and Futures Commission (SFC). The Report sets out the common issues identified during the SFC's second round of thematic inspections on ten selected licensed investment advisers conducted in 2006. Please refer to Annex for a copy of the Report. The regulatory requirements and recommendations stated in the Report apply equally to the investment advisory activities of Registered Institutions (RIs). Your institution should study the Report carefully and put in place proper controls and procedures to ensure compliance with the regulatory standards. The HKMA will continue to monitor individual RIs' compliance with the relevant regulatory requirements in its on-going supervisory process. Yours faithfully, Nelson Man Acting Executive Director (Banking Supervision) SFC Report (PDF file, 1,304KB) SFC (Attn: Mr Stephen Po, Senior Director,

Intermediaries and Investment Products Division) Last revision date : 01 August 2011