Regulatory Alerts2011-05-24
Added · Updated
Mystery Shopping Programme Findings: Report on Sale of Unlisted Securities and Futures Investment Products in Hong Kong Banking Sector
The Hong Kong Monetary Authority and Securities and Futures Commission issued a report on a mystery shopping exercise conducted between July and November 2010 to assess sales practices for unlisted securities, futures investment products, and structured deposits in the Hong Kong banking sector. The findings revealed that while banks generally complied with Know-Your-Client requirements, significant deficiencies existed in risk disclosure, suitability assessments, and the protection of vulnerable customers. The report highlights specific instances of inaccurate product information, inadequate explanation of risks, and failure to conduct proper suitability checks before recommending products.
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