{"id":557,"date":"2022-05-12T17:20:41","date_gmt":"2022-05-12T09:20:41","guid":{"rendered":"https:\/\/seniorclic.hk\/?p=557"},"modified":"2022-09-15T16:54:12","modified_gmt":"2022-09-15T08:54:12","slug":"new-measures-added-to-various-ordinances-to-enhance-protection-for-investors","status":"publish","type":"post","link":"https:\/\/seniorclic.hk\/en\/topics\/smart-elderly\/protection-of-investors-and-structured-products\/new-measures-added-to-various-ordinances-to-enhance-protection-for-investors\/","title":{"rendered":"New measures added to various Ordinances to enhance protection for investors"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;Post Breadcrumbs&#8221; module_class=&#8221;breadcrumbs&#8221; _builder_version=&#8221;4.17.3&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||30px||false|false&#8221; saved_tabs=&#8221;all&#8221; locked=&#8221;on&#8221; collapsed=&#8221;on&#8221; 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class=\"a2a_button_email\" href=\"https:\/\/www.addtoany.com\/add_to\/email?linkurl=https%3A%2F%2Fseniorclic.hk%2Fen%2Ftopics%2Fsmart-elderly%2Fprotection-of-investors-and-structured-products%2Fnew-measures-added-to-various-ordinances-to-enhance-protection-for-investors%2F&amp;linkname=New%20measures%20added%20to%20various%20Ordinances%20to%20enhance%20protection%20for%20investors\" title=\"Email\" rel=\"nofollow noopener\" target=\"_blank\"><\/a><a class=\"a2a_button_facebook\" href=\"https:\/\/www.addtoany.com\/add_to\/facebook?linkurl=https%3A%2F%2Fseniorclic.hk%2Fen%2Ftopics%2Fsmart-elderly%2Fprotection-of-investors-and-structured-products%2Fnew-measures-added-to-various-ordinances-to-enhance-protection-for-investors%2F&amp;linkname=New%20measures%20added%20to%20various%20Ordinances%20to%20enhance%20protection%20for%20investors\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\"><\/a><\/div><\/div>        [\/et_pb_code][et_pb_code admin_label=&#8221;Font&#8221; module_class=&#8221;font-resize&#8221; _builder_version=&#8221;4.17.3&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<div style=\"\" class=\"wpavefrsz wpavefrsz-shortcode wpavefrsz-theme-dark\"><span class=\"wpavefrsz-text\" aria-label=\"\"><\/span><span class=\"wpavefrsz-minus\" tabindex=\"0\" aria-label=\"Decrease text size\" title=\"Decrease text size\" role=\"button\">-<\/span><span class=\"wpavefrsz-plus\" tabindex=\"0\" aria-label=\"Increase text size\" title=\"Increase text size\" role=\"button\">+<\/span><span class=\"wpavefrsz-reset\" tabindex=\"0\" aria-label=\"Reset text size\" title=\"Reset text size\" role=\"button\">=<\/span><\/div>      [\/et_pb_code][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;Content&#8221; module_id=&#8221;content&#8221; _builder_version=&#8221;4.17.3&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;50px||50px||true|false&#8221; collapsed=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.17.3&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||||false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.17.3&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_post_title author=&#8221;off&#8221; date=&#8221;off&#8221; comments=&#8221;off&#8221; featured_image=&#8221;off&#8221; _builder_version=&#8221;4.17.3&#8243; _module_preset=&#8221;default&#8221; locked=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_post_title][et_pb_text _builder_version=&#8221;4.17.3&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>The SFC has introduced amendments to its Code of Conduct for Persons Licensed by or Registered with the SFC (\u201cthe Code of Conduct\u201d) to enhance protection for investors. The four major aspects of these amendments are:<\/p>\n<p><b>1. Investors Characterization<\/b><\/p>\n<p>A distributor should assess a client\u2019s knowledge of derivatives and characterize the client based on his knowledge of derivatives (other than professional investors for the purpose of the Code of Conduct). The distributor should provide appropriate advice according to the characterization of the client.<\/p>\n<p>Where a client without knowledge of derivatives wishes to purchase a derivative product, the distributor should explain the relevant risks associated with the product, warn the client about the transaction or provide appropriate advice to the client as to whether or not the transaction is suitable for the client in all the circumstances. Records of the warning and other communications with the client should be kept.<\/p>\n<p><b>2. Pre-sale Disclosure of Monetary and Non-monetary Benefit<\/b><\/p>\n<p>The New Code of Conduct requires distributors to provide relevant disclosure regarding the benefits they receive from product issuers for distributing their investment products.<\/p>\n<p><b>3.Disclosure of Sale Related Information<\/b><\/p>\n<p>Distributors are required to disclose sales related information to investors (i.e. the capacity in which a distributor is acting, any affiliation with the product issuer, monetary and non-monetary benefits received by distributor and including any discounts of fees and charges) prior to or at the point of sale.<\/p>\n<p><b>4. Refund by Distributors under the Cooling-Off Period provision<\/b><\/p>\n<p>A \u201ccooling-off\u201d period has been introduced to the investment product whereby for a specified time period following their signing of a contract, an investor can change their mind about purchasing the investment product and exercise their right under this mechanism to back out of the purchase and get a refund (including any sales commission), less a reasonable administrative charge.<\/p>\n<p>This \u201cpost-sale\u201d cooling period offers an additional layer of protection to the investors. The HKMA has also imposed a \u201cpre-sale\u201d cooling off period which applies to the period between the time of the provision of disclosure documents and the closing of the sale.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SFC has introduced amendments to its Code of Conduct for Persons Licensed by or Registered with the SFC (\u201cthe Code of Conduct\u201d) to enhance protection for investors. The four major aspects of these amendments are:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false},"categories":[43],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New measures added to various Ordinances to enhance protection for investors - Senior CLIC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seniorclic.hk\/en\/topics\/smart-elderly\/protection-of-investors-and-structured-products\/new-measures-added-to-various-ordinances-to-enhance-protection-for-investors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New measures added to various Ordinances to enhance protection for investors - Senior CLIC\" \/>\n<meta property=\"og:description\" content=\"The SFC has introduced amendments to its Code of Conduct for Persons Licensed by or Registered with the SFC (\u201cthe Code of Conduct\u201d) to enhance protection for investors. 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