Circular to Intermediaries
Frequently Asked Questions on Disclosure of Transaction Related Information

15 Jun 2018



The SFC issued the Consultation Conclusions on Proposals to Enhance Asset Management Regulation and Point-of-sale Transparency and Further Consultation on Proposed Disclosure Requirements Applicable to Discretionary Accounts on 16 November 2017.  Among others, the new Code1 requirements (as set out in paragraphs 8.3(b)(ii), 8.3A(a)(iii) and 8.3A(b) of the Code) governing the disclosure of non-quantifiable monetary benefits and independence status (New Disclosure Requirements) will come into effect on 17 August 2018.

In the light of queries raised by the industry regarding the implementation of the New Disclosure Requirements, the SFC wishes to provide guidance by way of Frequently Asked Questions (FAQs).  A copy of the FAQs is attached to this circular for your information.  The e-version of the FAQs is available for download on the SFC website at http://www.sfc.hk under the section “Regulatory functions – Intermediaries – Supervision – FAQs – Code of Conduct”.  The FAQs will be updated from time to time and you are advised to check our website for new information.

Should you have any queries regarding the contents of this circular, please contact Ms Pauline Chan at 2231 1952.

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission

Enclosure

End

SFO/IS/033/2018

1 Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (the Code)


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Supplementary document:
Appendix


Page last updated : 15 Jun 2018