With the publication on May 28 of the Consultation Conclusions of the Securities and Futures Commission (SFC) on its proposals for better protection of the investing public, the shape of Hong Kong's new regulatory regime for structured products is becoming clearer. It is, of course though, still a complex picture. Having absorbed the key conclusions for investor protection and those, published a month earlier, relating to reforming the investment offering regime, market participants are currently busy working out just how all the pieces fit together, and how their businesses will be impacted.
These are the three major pieces to the jigsaw.
SFC Investor Protection Consultation Conclusions
Key features of the Consultation Conclusions include:
Cooling-off: a cooling-off period of at least five business days will be required for all unlisted structured products authorised by the SFC with a maturity of more than one year; but product providers will have a free...