Regulatory Alerts2019-09-25
Added · Updated
Investor Protection Measures in respect of Investment, Insurance and Mandatory Provident Fund Products
Authorized Institutions must ensure physical segregation between deposit-taking and investment activities in retail bank branches, designating specific Non-deposit-taking Areas for investment sales. Audio-recording of face-to-face sales is required for complex products and specific non-complex products involving risk mismatch, with a seven-year retention period and a one-time opt-out option for non-vulnerable customers who have previously invested in comparable products. Institutions must streamline risk disclosure for subsequent transactions of comparable products, disclose increased risk ratings to affected retail customers, and assess customer concentration risk using prudent methodologies. Additionally, a Pre-investment Cooling-off Period of at least two calendar days is mandated for certain complex derivative and debenture products sold to retail banking customers, requiring specific confirmation before execution.
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