Selling practices of authorized institutions in respect of investment and insurance products

On 30 September 2020, the Hong Kong Monetary Authority (“HKMA”) published a report on the findings of a mystery shopping programme (“MSP”) under which the selling practices in respect of investment and insurance products of 20 selected banks were covered. Based on the results of the MSP, apart from a few isolated samples, the banks were generally in compliance with the Know-Your-Customer (“KYC”) procedures, suitability assessment and implementation of additional safeguards for less sophisticated customers (including pre-investment cooling-off period) in respect of the sale of investment products.

In this regard, this document sets out the key findings from the MSP with respect to the selling of insurance products and the relevant regulatory requirements/expectations that banks are expected to comply with and follow.