Concurrent SFC-HKMA thematic review on distribution of non-exchange traded investment products
In March 2022, the Securities and Futures Commission and the Hong Kong Monetary Authority announced that they will commence a concurrent thematic review on the distribution of non-exchange traded investment products, such as equity-linked structured products and corporate bonds. The review will focus on selected firms’ compliance with suitability obligations, which aims to assess these firms’ practices with respect to product due diligence, suitability assessments and information disclosure to clients, based on their policies, procedures, systems and controls, as well as senior management oversight of such product distribution.
This publication summarises the key elements of the review, highlights the specific risks and suitability requirements for certain type of high-risk products, and outlines how our financial advisory service offerings can assist you in preparing for the thematic review.
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