SFC consults on proposals to enhance protection for the investing public

Abstract

Purpose

The purpose of this paper is to draw attention to the Hong Kong Securities and Futures Commission (SFC) Consultation Paper on Proposals to Enhance Protection for the Investing Public, issued on September 23, 2009, and some of the key issues that financial services providers operating in or dealing with the Hong Kong market will need to consider.

Design/methodology/approach

The paper explains the purpose of the Consultation Paper and summarizes its proposals in three subject categories: retail products offered to the public in Hong Kong, intermediares’ conduct, and post‐sale arrangements and cooling‐off periods.

Findings

The paper finds that the SFC's overall intention is to enhance Hong Kong's existing regulatory regime for the sale of retail investment products.

Practical implications

The Consultation Paper addresses a significant number of wide ranging proposals that could have a material effect on those issuing and distributing retail investment products to the Hong Kong public, whether from inside or outside Hong Kong.

Originality/value

The paper provides practical guidance from experienced securities and financial institution lawyers.

Citation

Rogers, M., Shipman, M., Walker, J., Dare Bryan, P. and Robins, C. (2010), "SFC consults on proposals to enhance protection for the investing public", Journal of Investment Compliance, Vol. 11 No. 1, pp. 65-70. https://doi.org/10.1108/15285811011030220