Regulatory Alerts2025-12-29
Added · Updated
Further Frequently Asked Questions on Sale and Distribution of Green and Sustainable Investment Products
The Hong Kong Monetary Authority issued further guidance clarifying that the 2023 Green and Sustainable Investment Circular standards do not apply to execution-only trades where institutions do not market or classify products as green and sustainable. Registered institutions may streamline disclosure for non-retail banking customers based on their financial sophistication, provided they verify customer understanding and maintain records of this assessment. The regulator also highlights industry best practices, including the development of specific disclosure documents, the use of in-house sustainability scores, and enhanced governance and staff training programs regarding ESG topics.