Hong Kong SFC Released Guidelines on Online Distribution and Advisory Platforms
Hong Kong’s Securities and Futures Commission (SFC) have released consultation conclusions on Guidelines on Online Distribution and Advisory Platforms. A total of 34 written submissions were received from asset management firms, industry associations, robo-advisory and Fintech companies, law firms and individuals.
” Hong Kong SFC Released Guidelines on Online Distribution and Advisory Platforms “
The Guidelines will provide guidance on the design and operation of online platforms, including automated or robo-advice, suitability requirements and defining complex products for clients. For example, ”Complex products” refer to products whose terms, features and risks are not reasonably likely to be understood by retail investors because of their complex structures. Under the Guidelines, online platforms are required to ensure that any transaction in a complex product (other than exchange traded derivative products) in Hong Kong or in a specified jurisdiction) is suitable for the client, regardless by solicitation or recommendation.
Ashley Alder, the SFC’s Chief Executive Officer:
“We hope that the clarifications and guidance will facilitate the growth of online platforms, giving investors greater choice of products and advice. The guidelines represent a balanced regulatory approach. They allow more flexibility for investors to manage their investments online, whilst providing them with additional protection in relation to complex products whose features and risks retail investors may have difficulty in fully understanding”
The consultation began on 5th May 2017. Learn more: The Consultation Conclusion. The guidelines will become effective 12 months after gazettal on the 6th April 2018.
Participating Firms (By alphabetical order)
- AGDelta Limited
- Asia Securities Industry & Financial Markets Association
- Baker & McKenzie
- BlackRock, Inc.
- CompliancePlus Consulting Limited
- Consumer Council
- Hong Kong Investment Funds Association
- iFAST Financial (HK) Limited
- Morningstar Investment Management Asia, Ltd
- Noble Apex Advisors Limited
- Nutmeg Asia Limited
- Private Wealth Management Association
- TD Ameritrade Hong Kong Limited
- The Hong Kong Association of Banks
- The Hong Kong Association of Online Brokers Limited
- The Hong Kong Society of Financial Analysts
- The Institute of Financial Planners of Hong Kong
- The Law Society of Hong Kong
- Thomson Reuters
- Vanguard Investments Hong Kong Limited
- Yunfeng Securities Limited
- and more (names undisclosed)
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