Retail concerns over cooling-off period

The Securities and Futures Commission (SFC) released its 368-page consultation paper last September on proposals to enhance protection for the investing public. The industry has wrestled with a number of proposals that were put forward, such as whether a mandatory cooling off period should be available for investors of unlisted structured investment products (Sips).

The SFC has now published its Consultation Conclusions on Proposals to Enhance Protection for the Investing Public (Consultation Conclusions) on the earlier consultation paper. This includes a new product code on unlisted structured investment products (Sip Code). This article focuses on a few of the main elements of the new regime (including a cooling-off period), how they fit into the broader Hong Kong regulatory regime and their possible implications for Hong Kong as an international financial centre in the new world order.

Perhaps the most controversial issue of the consultation paper was whether or not investors...