Regulatory Alerts2022-07-08
Added · Updated
Guidance to Authorized Institutions on Selling of Protection Linked Plans
The Hong Kong Monetary Authority issues this guidance to require Authorized Institutions to conduct rigorous product due diligence and suitability assessments before distributing Protection Linked Plans. Institutions must ensure comprehensive point-of-sale disclosure of product risks, fees, and insurance elements while strictly verifying customer affordability and investment horizon alignment. Additionally, the regulator mandates audio recording of retail sales processes, enhanced oversight for vulnerable customers, and robust management controls to monitor compliance and handle exceptions.