Page 71 - 期货和衍生品行业监管动态（2024年4月）
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期货和衍生品行业监管动态
Joint Circular to Intermediaries : Findings of Concurrent SFC-HKMA
Thematic Review of the Distribution of Non-exchange Traded Investment
Products (2024/4/18)
During a concurrent thematic review [1] of the distribution of non-exchange traded
investment products by intermediaries, the Securities and Futures Commission
(“SFC”) and the Hong Kong Monetary Authority (“HKMA”) identified some issues
on intermediaries’ practices in performing product due diligence (“PDD”) and
suitability assessment, providing information to clients and ensuring investment
products are in the best interests of the clients. The intermediaries concerned were
required to undertake remedial action to address the issues identified.
Key observations
Many intermediaries would assign risk rating to investment products as part of
PDD for matching with client’s risk tolerance level, either calculated using their
internal risk-scoring mechanisms or based on the nature of underlying investments.
The regulators noted that some intermediaries had overlooked certain key features and
risk factors in their PDD assessment methodologies which could directly or indirectly
impact the risk return profiles and growth prospect of the investment products. In
some cases, intermediaries did not consider during the assessments the pay-out and
characteristics of a leveraged structured forward contract, credit events relating to the
product issuers, heightened market and industry risks, or adverse economic and
political environments.
These intermediaries could run the risk of making inappropriate
recommendations to clients if the risk return profiles of the products were not
adequately assessed and accurately reflected in the product risk ratings used for the
suitability assessment. Under such circumstances, the ability of intermediaries to fully
inform clients the nature and extent of risks of the products would also be adversely
affected. The risk would be further aggravated if the investment products, such as
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