Simplified Arrangements for Sale and Distribution of Eligible Retail Bonds Issued by Government and Related Organisations

31 July 2020

The HKMA considers correspondingly streamline the sale and distribution process for eligible plain vanilla and low-risk retail bonds issued by government and related organisations.Registered institutions (“RIs”) can execute customers’ orders of these bonds without triggering the suitability requirement if solicitation or recommendation is not involved. Where there is solicitation or recommendation, RIs may adopt a risk-based approach in performing suitability assessment. Further, RIs are not required to audio-record face-to-face sale process or implement companion requirements for vulnerable customers in respect of these bonds.

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