Regulatory Alerts2023-02-27
Added · Updated
Observations from Review of Selling Processes of Investment Products
The Hong Kong Monetary Authority and Securities and Futures Commission issued this document to correct retail and private banks' non-compliant practices identified during a review of investment product sales. The regulators clarified that streamlined risk disclosures must account for customer sophistication, investment horizon assessments must consider product liquidity, and concentration risk thresholds must be tailored to individual client circumstances. Furthermore, the guidance specifies that suitability requirements apply only to recommendations or complex products, and audio-recording is mandatory solely for specific high-risk or complex transactions involving retail banking customers.
More like this from HKMA
HKMA published 11 documents in the last 30 days. We email you each new one the day it's published.