Hong Kong Consultation on Guidelines on Online Distribution and Advisory Platforms

June 22, 2017

The use of online platforms for distribution of financial products has become increasingly popular in Hong Kong. In May 2017, the Hong Kong Securities and Futures Commission (SFC) issued a Consultation Paper inviting comments on investor protection measures with respect to financial products offered on online platforms. The Consultation Paper aims “to introduce a specific set of guidelines (Proposed Guidelines) applicable to all SFC-licensed or registered persons when conducting their regulated activities in providing order execution, distribution and advisory services in respect of investment products via online platforms (Platform Operators).” The Proposed Guidelines potentially affect a broad variety of fund managers and distributors. If the consultation proposals are adopted, Platform Operators will need to conduct a review of their current operations and make appropriate changes in order to comply with the requirements in the Proposed Guidelines.

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