SFC Guidelines for Addressing Analyst Conflicts of Interest

Our Ref: Circulars 08 Nov 2004 SFC Guidelines for Addressing Analyst Conflicts of Interest B1/15C G16/1C 8 November 2004 The Chief Executive All Registered Institutions (Including those institutions deemed to be registered under the transitional arrangements of the Securities and Futures Ordinance) Dear Sir / Madam, SFC Guidelines for Addressing Analyst Conflicts of Interest I am writing to draw your attention to the circular issued by the Securities and Futures Commission (SFC) today to all intermediaries regarding its consultation conclusions on the regulatory framework and guidelines for addressing analyst conflicts of interest. The guidelines, which will form part of the Code of Conduct for Persons Licensed by or Registered with the SFC, are scheduled to come into effect on 1 April 2005. The guidelines will cover investment research on securities1 that are traded in Hong Kong and investment research that has an influence on such securities. Registered institutions are expected to establish and maintain proper policies, procedures and controls to ensure compliance with the guidelines. You may visit the SFC's website at http://www.hksfc.org.hk for the consultation conclusions paper (which also contains the guidelines) and the related Questions and Answers. Yours faithfully, Y K Choi Executive Director (Banking Supervision) c.c. SFC (Attn: Mrs Alexa Lam) 1 For the purpose of the guidelines, the term "securities" means shares issued by a listed corporation and any warrants or options on these shares which are listed or traded on The Stock Exchange of Hong Kong Limited.

Last revision date : 01 August 2011