The SFC introduces enhancements to the Cross-Boundary Wealth Management Connect Pilot Scheme, allowing participating licensed corporations to conduct investment product screening and three-party dialogues with clients from the Mainland and Hong Kong, with specific guidelines for research reports and partnership arrangements.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On November 13, 2025, the Securities and Futures Commission ("SFC") introduced further enhancements to the Cross-Boundary Wealth Management Connect Pilot Scheme. Participating licensed corporations ("LCs") can now provide Southbound Scheme clients with one-off written consent, valid for up to one year, to accept the introduction of investment products tailored to their personal situations and selected product categories. This eliminates the need for ongoing client requests during the consent period. Additionally, Mainland partner brokers can assist clients in setting up three-party dialogues, facilitating clear communication and product explanations between LCs and clients, with both parties defining their roles and obligations in a cooperation agreement to ensure compliance with relevant regulatory requirements in the Mainland and Hong Kong.
For the Northbound Scheme, clients can give one-off consent for Partner Brokers to introduce products. Participating LCs can assist clients in setting up three-party dialogues with Partner Brokers, ensuring regulatory compliance and providing clear disclosures of conflicts of interest in research reports. Participating LCs can provide Southbound Scheme clients with research reports on macroeconomic conditions, market environment, and industry segments, while Partner Brokers can furnish research reports for Northbound Scheme clients.
Participating LCs are required to conduct thorough product due diligence and assess clients’ risk profiles prior to introducing products. If any risks are mismatched, clients should be alerted, and consent should be sought. Compliance with Hong Kong’s laws and regulations, including the Code of Conduct, is mandatory. LCs may also enter partnership arrangements with eligible Mainland brokers by submitting a business plan and self-assessment report, with the latter required to submit relevant information to Mainland regulatory authorities. For any queries regarding this circular, please contact
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