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.

France – AMF MiFID II Guide for IAs

On 13 June, FR AMF issued updated guide for investment advisers.

Updated Guide

  • To support IAs in fulfillment of obligations, AMF updated MiFID 2 guide of October 2017.
  • More than an overview of impact of MIF 2, the guide aims to serve as a tool for IAs.
  • MiFID 2 transposed into French law by a law of 23 June 2016, in force 3 January 2018.
  • For IAs, provisions similar to MiFID transposed by order of 22 June 2017 (no. 1107).
  • Under the French IA (CIF) regime, the relevant provisions have been incorporated
    into the AMF General Regulation, these provisions, came into force on Jun. 8, 2018.
  • French IA system is changing the organization of CIFs, it introduces new concepts.
  • Eg concept of independent investment advice, and introduces new obligations for IAs.

Contents

  • The MiFID 2 guide for IAs published by the AMF now contains eight thematic sheets.
  • Seven thematic sheets of first version have been enhanced by the provisions of the
    AMF General Regulation, as well aspractical answers to frequently asked questions.
  • 8th sheet aims to present, in non-exhaustive way, steps of the customer relationship.
  • Sheets include impacts of MiFID 2 on IAs, enhancing IA authorization and monitoring
    procedure, rules of governance of the IA, and the prevention of conflicts of interest.
  • Independent investment advice, governance of financial instruments, strengthening
    customer information, evaluation of suitability of products, and putting into practice