Regulatory Alerts2021-12-29
Added · Updated
Mystery Shopping Programme on Selling Practices in respect of Qualifying Deferred Annuity Policies and Tax-deductible Voluntary Contributions in Hong Kong
The Insurance Authority, Mandatory Provident Fund Schemes Authority, and Hong Kong Monetary Authority jointly instituted a mystery shopping programme to assess intermediary selling practices for Qualifying Deferred Annuity Policies and Tax-deductible Voluntary Contributions. A service provider recruits and trains mystery shoppers to pose as potential customers and audio-record interactions, enabling regulators to evaluate compliance with requirements such as customer risk profiling, suitability of recommendations, and product disclosure. The programme commenced in January 2022, with findings potentially leading to follow-up actions on specific cases or the sharing of industry-wide issues and good practices.