Regulatory Alerts2014-12-08
Added · Updated
HKMA Mystery Shopping Programme Findings on Sale of Investment and Insurance Products
The Hong Kong Monetary Authority issued findings from a mystery shopping programme conducted in 2013 and 2014 to assess the sales practices of Authorized Institutions regarding investment and insurance products. The review identified general compliance with Know-Your-Customer requirements but highlighted significant weaknesses in risk disclosure, suitability assessments, and the handling of vulnerable customers. In response, the HKMA has mandated root cause analysis and enhanced controls for non-compliant institutions while issuing new guidance on expected selling practices for non-linked long term insurance products.
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