Regulatory Alerts2011-05-24
Added · Updated
Mystery Shopping Programme Findings Annex 2 (SFC)
The Securities and Futures Commission engaged the Hong Kong Productivity Council to conduct a mystery shopping exercise assessing the selling practices of ten licensed corporations regarding unlisted securities and futures investment products. The findings revealed that while Know-Your-Client procedures were generally compliant, significant gaps existed in the explanation of product features, disclosure of risks, and suitability assessments, with some staff providing inaccurate information or undermining risk profiles. The SFC requires firms to critically review their internal controls to ensure regulatory compliance and has indicated that these findings will inform future supervisory regimes and potential enforcement actions.
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