HKMA and Securities and Futures Commission (SFC) announced plans to jointly launch the first annual survey on the sale of non-exchange traded investment products by licensed corporations and registered institutions licensed or registered for Type 1 or 4 regulated activity. The will cover the period from January 01 to December 31, 2020. The survey covers the sale of non-exchange traded investment products, such as collective investment schemes, debt securities, structured products, swaps, and repos, to individual professional investors, certain corporate professional investors, and investors other than professional investors. Entities are expected to submit completed questionnaires to SFC electronically through Web-based INteGrated Service (WINGS) in the first quarter of 2021.
The survey will enable SFC and the HKMA to better understand market trends, identify risks associated with the selling activities of intermediaries, and coordinate their responses to address areas of common concern. The survey questionnaire will be available in Excel format in WINGS around mid-2020. The survey questionnaire includes three parts:
- Part A (General information)—All intermediaries should complete Part A to provide their contact information and indicate whether they sold any non-exchange traded investment products during the reporting period.
- Part B (Information on the sale of non-exchange traded investment products)—Intermediaries which sold non-exchange traded investment products during the reporting period should complete Part B to provide an overview of their selling activities, such as the transaction amount by types of investment products, top issuers of investment products sold, and clientele
- Part C (Supplementary information about the sale of non-exchange traded investment products)—Licensed corporations with total transaction amounts of HKD 1 billion or above and institutions with total transaction amounts of HKD 30 billion or above during the reporting period should also complete Part C, which collects information such as the transaction amount of investment products by types of investors and details of the top five investment products sold.
Following the launch of the survey, the biennial surveys by the SFC will no longer be carried out. HKMA will also review its survey on the sale of investment products to retail banking customers and communicate with institutions separately where appropriate. HKMA and SFC will issue another circular in late 2020 providing further information about submitting the questionnaires.
Keywords: Asia Pacific, Hong Kong, Banking, Securities, Survey, Non-Exchange Traded Instruments, Swaps, Structured Products, HKMA
Previous ArticleFSI Examines Use of Red Team Testing to Enhance Cyber Resilience
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.