The Securities and Futures Commission Consults on New Guidelines on Online Distribution and Advisory Platforms

The Securities and Futures Commission Consults on New Guidelines on Online Distribution and Advisory Platforms

The Securities and Futures (SFC) propelled a three-month discussion on planned Guidelines on Online Distribution and Advisory Platforms, asking for remarks by 4 August 2017.

Online platforms empower exchanges to happen with no connection between a financial specialist and a business agent. This new plan of action brings new open doors and also hazards. The SFC proposes to present an arrangement of particular rules pertinent to all SFC-authorized or enrolled people when leading their controlled exercises in giving request execution, distribution and counseling services in regard of investment products through online platforms.

The proposed rules expect to give custom fitted direction to the business on the outline and operation of online platforms, and also elucidate how the suitability requirement would work in the online environment.

It concentrates on three fundamental ranges: suitability requirement; extra protective measures for the sale of complex items on online platforms on a unwelcome premise; and administration and controls.

In the proposed rules, the suitability requirement will be stretched out to the sale of complex items on online platforms since retail investors may experience issues in completely understanding the nature and dangers related with a complex item construct just in light of the data posted on an online platform. It additionally contains particular direction on the arrangement of automated or robo-exhortation on an online platform.

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