SFC Structured Product and other Investment Product Reforms

The Securities and Futures Commission following the collapse of Lehman has been committed to revamping and codifying the structure and methods of selling structured and other investment products in Hong Kong. The recent implementation of a Handbook for the new regime has been a major milestone in that exercise. Developed by Allen & Overy's APAC Regulatory team, this is an easy to use website that provides information on key technical and practical aspects of the changes. The new Handbook (including the brand new Structured Investment Products (SIP) Code), implemented on 25 June 2010, building in various transactional arrangements, is designed to harmonise the investment product offering and distribution landscape in Hong Kong. Further developments by way of legislative changes to the regime will be put in place in the coming months. The reforms are intended to tighten regulation on structured products and to reduce inconsistencies across product types. They raise operational and commercial, compliance issues for the financial markets in Hong Kong, domestically and in the context of broader international themes, both Asian and global. http://www.allenovery.com/AOWEB/AreasOfExpertise/Editorial.aspx?contentTypeID=1&contentSubTypeID=7944&itemID=56883&countryID=18856&aofeID=309&prefLangID=410