Circular to intermediaries SFC and HKMA joint product survey 2023

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have issued a joint circular to inform intermediaries with type 1 or type 4 registrations about the upcoming yearly survey on sales data on certain investment products. In detail, the survey covers „the sale of non-exchange-traded investment products such as collective investment schemes, debt securities, structured products, swaps, swaptions and repos“ to investors other than institutional professional investors or certain corporate professional investors where intermediaries cannot rely on a waiver of the suitability obligation.
The survey is used by the regulators to determine market trends and possible sales related risks. The survey is mandatory and covers the period from January 1, 2023 to December 31, 2023. It consists of three parts, namely
– a general information Part (A) with contact information and an indication as to whether or not any in-scope products have been sold in the period;
– Part (B) which contains information on the sales volume per product and investor type; and
– Part (C) seeking information on the transaction amounts per investment product and per investor type and more detailed information on the top five products sold.
The due dates which depend upon the scope and aggregate value of the sales activities are outlined in the circular. The filing form and corresponding instructions may be found on the SFC’s WINGS portal, the electronic filing platform of the regulator. For further information, please see the enclosed document.