Regulatory Alerts2024-02-23
Added · Updated
Portfolio-based Approach to Suitability Assessment
The Hong Kong Monetary Authority issued this circular to supersede four previous guidance documents regarding suitability obligations and the selling of investment products. The replaced circulars covered topics such as private banking sales, SFC-related suitability requirements, client securities handling, and investment horizon assessments. This update consolidates prior regulatory expectations into the current Portfolio-based Approach to Suitability Assessment framework.
Annex 3 Previous guidance superseded Relevant sections/paragraphs on PBA previously issued by the HKMA as set out in the following circulars are superseded by this circular: • The HKMA’s circular dated 12 June 2012 on “Selling of Investment Products to Private Banking Customers” • The HKMA’s circular dated 28 December 2016 on “Update of Requirement Following the Circulars Issued by the Securities and Futures Commission (“SFC”) in relation to Suitability Obligations” • The HKMA’s circular dated 23 February 2017 on “Guidance on selling of investment products and handling of client securities” • The HKMA’s circular dated 18 October 2018 on “Investment horizon and suitability assessment”
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