Concurrent SFC-HKMA thematic review of spread charges and other practices

On 18 May 2020, the Securities and Futures Commission (“SFC”) and the Hong Kong Monetary Authority (“HKMA”) announced that a concurrent thematic review on selected intermediaries in the second half of 2020 will be carried out to assess their spread charges and other practices as well as compliance with requirements governing the disclosure of trading capacity and monetary benefits under the Code of Conduct for Persons Licensed by or Registered with the SFC (“the Code of Conduct”).

The review will cover the following areas related to distribution to clients of non-exchange traded investment products such as bonds and structured products, including policies and procedures, systems and controls, and senior management oversight.

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