Complex Products - Welcome Clarifications from the SFC
On 13 June 2019, the Securities and Futures Commission (the “SFC”) issued helpful guidance in the form of frequently asked questions (the “FAQs”) on the new requirements applicable to complex products under Chapter 6 of the Guidelines on Online Distribution and Advisory Platforms and paragraph 5.5 of the SFC’s Code of Conduct (collectively, the “Requirements”). These are the new rules which require, amongst other things, a suitability assessment to be performed by intermediaries for “complex products” even where no recommendation or solicitation is made. The Requirements will come into effect on 6 July 2019.
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