27 November 2019
Investor protection remains a top focus for financial regulators in Hong Kong, with mis-selling of investment products a key consideration. The Hong Kong Monetary Authority (HKMA) has introduced a number of investor protection measures to facilitate the provision of suitable investment, insurance and mandatory provident fund products by Authorized Institutions (AIs).
In response to changing sales models, including the use of technology, the HKMA conducted a holistic review of the current investor protection measures with an objective to refine some of the key measures, considering prevailing industry practices, applicability to different business models (e.g. online and offline sales channels) and the customer experience.
On 25 September 2019, HKMA issued the circular “Investor Protection Measures in respect of Investment, Insurance and Mandatory Provident Fund Products” (the Circular) to AIs in Hong Kong to introduce the refined investor protection measures to streamline existing processes to improve the customer experience. New measures are also introduced to enhance the protection of less sophisticated customers and to ensure AIs sufficiently consider customer circumstances when making product recommendations. AIs are encouraged to take this opportunity to holistically review their compliance status with relevant regulatory requirements.
The flyer looks at how the Circular affects the current operations of your institution and how KPMG can help.