Regulatory Alerts2022-07-08
Added · Updated
Guidance to Authorized Institutions on Selling of Protection Linked Plan
The Hong Kong Monetary Authority issued this circular to provide guidance to authorized institutions on selling Protection Linked Plans, consolidating and modernizing requirements to align with standards from the Securities and Futures Commission and the Insurance Authority. The guidance mandates strict product due diligence, suitability assessments, and enhanced disclosures regarding PLP-specific features, risks, and remuneration structures to ensure customer protection. Authorized institutions must implement adequate internal controls, conduct pre-implementation reviews by independent parties, and engage with the regulator before commencing sales of these products.