Regulatory Alerts2021-10-29
Added · Updated
HKMA Key Observations on Spread Charges and Practices in Thematic Review
The Hong Kong Monetary Authority issued key observations from a thematic review of registered institutions regarding spread charges and the distribution of non-exchange-traded investment products. The review identified significant control deficiencies, including inadequate monitoring of price improvements, failure to adhere to disclosed spread ceilings, and insufficient transaction-based disclosure of monetary benefits. While some institutions demonstrated good practices through dedicated oversight committees and robust pre-trade system controls, the findings highlight the need for stricter internal guidance and accurate fee disclosure to clients.
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