Wednesday March 30 2016
News Source: Global Exchanges
Focus: Other
Type: General
Country: Hong Kong
Link: http://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=16EC15
As set out in the Consultation Conclusions on the Proposed Amendments to the Professional Investor Regime and Further Consultation on the Client Agreement Requirements published on 25 September 2014 (the new Professional Investor Regime), a new paragraph 15 of the Codein relation to Professional Investors came into effect on 25 March 2016.
The reform ensures that specified categories of professional investors who, previously, were not covered by important Code protections will be covered from this date. A key objective is to ensure that these protections extend to all individual clients of intermediaries (including those who use corporate vehicles) regardless of their financial resources.
Intermediaries will, among other obligations, be bound by the Suitability Requirement in relation to these clients. Intermediaries will also need to enter into a written client agreement and provide relevant risk disclosure statements.
Click on the link above for further details.