Regulatory Alerts2016-04-01
Added · Updated
SFC Circular on Distribution of Chapter 37 Bonds and Local Unlisted Private Placement Bonds
The Securities and Futures Commission issued this circular to address compliance risks identified in the distribution of Chapter 37 Bonds and Local Unlisted Private Placement Bonds to retail and high net worth investors. The regulator mandates that licensed corporations conduct rigorous due diligence, provide accurate and balanced information, and strictly restrict the sale of Chapter 37 Bonds to professional investors only. Additionally, firms must eliminate misleading client declarations, fully disclose liquidity risks, and ensure all selling practices align with the Code of Conduct and best interest obligations.
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