HONG KONG: SFC Concludes Consultation on Disclosure Requirements for Discretionary Accounts

Friday June 1 2018

On 23^rd May 2018, the Securities and Futures Commission (SFC) released consultation conclusions on proposed disclosure requirements for intermediaries providing discretionary account management services.

Under the proposed requirements, which the SFC will implement, these intermediaries will be required to disclose benefits receivable from product issuers as well as trading profits they make from products purchased from or sold to third parties for their clients. The requirements address potential conflicts of interest arising from incentives provided by product issuers.

The amendments to the Code of Conduct will come into effect six months following gazettal. The SFC will publish frequently asked questions to provide further guidance to the industry.

Please click on the above link for more information.