Regulatory Alerts2021-10-11
Added · Updated
Distribution of insurance-linked securities and related products
The Hong Kong Monetary Authority and the Securities and Futures Commission issued this circular to remind intermediaries of their suitability obligations when distributing insurance-linked securities and related products. The regulators emphasize that these instruments are complex, high-risk mechanisms primarily targeting institutional investors, with sales in Hong Kong strictly restricted to eligible investors meeting a minimum investment threshold. Intermediaries must conduct thorough product due diligence, ensure client risk profiles match the investment, and provide adequate training and clear warnings regarding the potential for total capital loss.
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