Regulatory Alerts2018-02-15
Added · Updated
SFC Circular on Client Facilitation Annex 2: Thematic Review Observations and Expected Standards
The Securities and Futures Commission issued this document to outline expected standards and observations from a thematic review of client facilitation practices among licensed corporations. The regulator mandates robust management oversight, strict segregation of agency and facilitation activities, and rigorous controls over client consent, disclosures, and indications of interest. Key requirements include ensuring physical and system segregation to prevent information leakage, obtaining prior client consent for principal trades, and maintaining accurate, timely indications of interest to mitigate conflicts of interest and misconduct risks.
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