Regulatory Alerts2021-09-14
Added · Updated
HKMA Observations on Sale of Qualifying Deferred Annuity and Voluntary Health Insurance Products and Tax Deductible Voluntary Contributions Referrals
The Hong Kong Monetary Authority issued this circular to share findings from desktop reviews of authorized institutions' sales practices for tax-deductible Qualifying Deferred Annuity Policies, Voluntary Health Insurance Scheme products, and Tax Deductible Voluntary Contributions. The regulator identified specific deficiencies in suitability assessments, product disclosure, and customer referral processes, requiring institutions to implement enhancement measures and ensure compliance with expected standards. Authorized institutions are reminded to avoid undue emphasis on tax benefits and to maintain rigorous oversight to protect customer interests.