How to Handle Mis-Selling Claims

Since 2008, we have seen not only a substantial number of complaints made by clients against regulated financial advisers and wealth managers alleging mis-selling but also a substantial increase in the standard expected by the Securities and Futures Commission ("SFC") of such advisers and wealth managers in ensuring the suitability of the products which they distribute.  Though the courts have tended to be less sympathetic to claims of mis-selling, the SFC has aggressively pursued mis-selling.  In an effort to bridge the divide between the law and its own regulatory standards, the SFC now requires all firms under its regulatory domain to include a suitability clause in their client agreements, intended to enable clients to sue for damages if the firm sells or recommends a financial product which is “unsuitable” for the client.

Please join us for the lunch time seminar as we provide our perspective on the evolving concept of suitability and review how regulated firms can minimize the risk of claims of mis-selling in carrying out their business and how they should respond to allegations of mis-selling.

Speakers

Timothy Loh, Managing Partner

Mr. Loh has extensive experience advising SFC regulated firms on all aspects of the conduct of their business and representing such firms not only in proceedings commenced by the SFC alleging misconduct but also in court and arbitral proceedings commenced by clients.

Francis Comtois, Partner

Mr. Comtois is a litigator whose practice includes representing clients in SFC investigations and disciplinary proceedings, the resolution of commercial disputes related to the provision of financial services and white collar criminal proceedings.

Greg Heaton, Former Senior Director and Head of Licensing at the SFC

Mr. Heaton recently joined Timothy Loh LLP from the SFC, where he played a key role in the oversight of SFC licensed intermediaries and the development of regulatory policy. He was also a member of the Board of the Financial Dispute Resolution Centre, the body responsible for the arbitration and mediation of disputes involving financial institutions regulated by the SFC and the Hong Kong Monetary Authority and their clients.

Please join us for the lunch time seminar as we provide our perspective on the evolving concept of suitability and review how regulated firms can minimize the risk of claims of mis-selling in carrying out their business and how they should respond to allegations of mis-selling.