On September 29, 2025, the SFC and HKMA will conduct a thematic review of the distribution of non-exchange traded investment products, focusing on collective investment schemes. The review aims to evaluate compliance with suitability requirements and assess practices in product due diligence and client information provision.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On September 29, 2025, the Securities and Futures Commission ("SFC") and the Hong Kong Monetary Authority ("HKMA") will initiate a new round of concurrent thematic review of the distribution of non-exchange traded investment products by intermediaries.
The 2024 SFC-HKMA joint product survey, released in September 2025, indicated substantial sales growth for all major investment product types in 2024, with Collective Investment Schemes ("CIS") experiencing a 76% year-on-year increase.
The forthcoming review will examine the policies, procedures, systems, controls, and management oversight of selected intermediaries with regard to the distribution of CIS. Its objectives include evaluating compliance with the suitability requirement under the Code of Conduct, focusing on practices in product due diligence, suitability assessments, and client information provision.
The SFC and the HKMA will share the findings of this review with the industry and may issue further guidance as necessary.
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