Hong Kong’s SFC to tackle mis-selling
Hong Kong securities industry watchdog the Securities and Futures Commission (SFC) issued a report on 29 March, which sets out the regulatory challenges and risks that the SFC faces and the strategies to address them. One of the key objectives in the next three years is to tackle complex and structured products mis-selling, according to the SFC.
The report highlights complex and structured products are now reaching retail investors through various channels such as banks, brokers or insurance intermediaries at an unprecedented speed.
The SFC says retail investors may not fully understand the risk of investing in these products. In particular, the SFC says the inconsistency in regulating similar investment products of different legal forms can have an impact on mis-selling.
“For example, sales of insurance products are regulated
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