Update on the latest regulatory requirements for selling of Protection Linked Plan
InsightsOur publicationsFinancial services publications
The latest regulatory requirements for selling PLP
With the introduction of a new type of investment-linked assurance scheme (“ILAS”) known as Protection Linked Plan (“PLP”), the Hong Kong Monetary Authority (“HKMA”) have recently published a circular to provide guidance to authorized institutions (“AI”) highlighting on its regulatory requirements and expectations on the selling practice of PLP to enhance customer protection in Hong Kong.
This publication provides a high-level summary of the key regulatory requirements from the HKMA on selling of PLP in Hong Kong, namely:
- Product due diligence;
- Suitability assessment and product recommendation;
- Product disclosure;
- Audio recording and record maintenance;
- Management oversight; and
- Protection of vulnerable customers.
Contact
