Regulatory Alerts2023-07-28
Added · Updated
Streamlined approach for compliance with suitability obligations when dealing with sophisticated professional investors
The Hong Kong Monetary Authority and the Securities and Futures Commission issued this joint circular to provide intermediaries with guidance on applying a proportionate, risk-based streamlining approach when dealing with sophisticated professional investors. This approach allows intermediaries to simplify point-of-sale procedures, such as waiving transaction-level suitability assessments, for clients who possess sufficient financial sophistication and loss absorption ability. Intermediaries remain primarily responsible for maintaining effective systems and controls to guard against misuse and detect red flags arising from the application of these streamlined measures.
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