SFC, HKMA team up to review products

The Securities and Futures Commission and the Hong Kong Monetary Authority will jointly review non-exchange traded products, including equity-linked structured products and corporate bonds.

The review will focus on selected intermediaries' policies, procedures, systems and controls, as well as management oversight of the distribution of popular products such as equity-linked structured products and corporate bonds, as noted from the joint survey.

The review aims to assess intermediaries' compliance with suitability requirements under the code of conduct, which is licensed by or registered with SFC, including their practices for performing product due diligence, conducting suitability assessments and providing information to clients.

The two regulators will share their findings and consider further guidance based on the review.

The SFC and HKMA have been coordinating in addressing areas of common concern since the publication of the results of their first joint product survey in October 2021.