HK SFC tones down structured products approvals
The Hong Kong Securities and Futures Commission (SFC) has postponed the approval of structured retail note documentation but issuers who possess active equity-linked investment programmes (ELIs) are still able to issue products according to various structured product providers. The move comes amid on-going investigations by the SFC into the misselling of structured products following the bankruptcy of Lehman Brothers. The SFC is also due to release a report on the selling process of structured products in Hong Kong at the end of December.
"The SFC is not approving any retail structured notes which are generally approved on a one-off basis," says one structured products issuer in Hong Kong. "They haven't issued a statement saying they are not approving products but when banks submit documents for authorisation it is just not getting done. However, it is still possible to launch ELIs which are part of an ongoing programme which is
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