Regulatory Alerts2022-12-23
Added · Updated
Findings of Mystery Shopping Programme on Selling Practices in respect of Qualifying Deferred Annuity Policies and Tax-deductible Voluntary Contributions in Hong Kong
The Insurance Authority, Mandatory Provident Fund Schemes Authority, and Hong Kong Monetary Authority issued this circular to share findings from a 2022 mystery shopping programme assessing intermediary selling practices for Qualifying Deferred Annuity Policies and Tax-deductible Voluntary Contributions. The Regulators identified significant deficiencies in know-your-customer procedures, financial needs analysis, and the disclosure of product risks, features, and conflicts of interest, noting that while general compliance was observed, specific areas require improvement. Intermediaries are required to review their internal controls, staff training, and sales processes to ensure suitability assessments are rigorous, vulnerable customers are properly identified, and all material information is accurately and fairly disclosed to customers.