Regulatory Alerts2024-12-20
Added · Updated
Streamlining of Audio-recording Requirements for Sale of Investment and Insurance Products
The Hong Kong Monetary Authority streamlines audio-recording requirements for investment transactions conducted via video-conference by aligning triggers with face-to-face retail banking sales, requiring recording only for complex products or solicitations involving risk mismatch. The Authority permits Authorized Institutions to deploy digital tools as alternative measures to audio-recording for investment and annuity insurance products, provided these measures offer equivalent customer protection and serve as reliable evidence for disputes. Authorized Institutions must ensure these alternatives are appropriate for specific customers and products, implement robust controls to prevent abuse, and demonstrate compliance with the HKMA before deployment. These alternative measures are explicitly excluded from the sale of Protection Linked Plans.