Hong Kong – SFC Trade Disclosure FAQs

Hong Kong – SFC Trade Disclosure FAQs

On 15 June, HK SFC issued FAQs on disclosure of transaction data.

  • Issued consultation conclusions on proposals for regulation of asset management.
  • Point-of-sale transparency and disclosure required for discretionary accounts Nov.
  • Among others, new code requirements govern the disclosure of non-quantifiable
    monetary benefits and independence status, come into effect on August 17 2018.
  • FAQs respond to queries raised by industry regarding the implementation of rule.

FAQs

  • FAQs address commissions from trailer funds, and independence of intermediary.
  • Expect licensed and registered persons to disclose maximum percentage of trailer
    fees receivable for specific fund as per distribution agreement with product issuer.
  • One objective of disclosure requirement, is to ensure that only truly independent
    intermediaries can represent themselves as independent, allows as one-off basis.