The Finalized Industry-Led FAQ on the Streamlined Approach for Compliance with Suitability Obligations when Dealing with Sophisticated Professional Investors

The Hong Kong Monetary Authority (“HKMA”) and the Securities and Futures Commission (“SFC”) issued a joint circular and accompanying guidance on sophisticated professional investors (“SPIs”) in July 2023. PWMA subsequently formed an Industry-Led FAQ on the subject upon members’ suggestions.

The Industry-Led SPI FAQ has now been finalized in consultation with the HKMA and the SFC. The FAQ covers the following areas of the SPI scheme: Knowledge and Experience, Investment Goals, Corporations’ Qualifications for SPI, Review/Renewal of SPI Status, Streamlining Thresholds and Product Categories.

PWMA hopes this Industry-Led SPI FAQ will be able to offer its members further clarity on the implementation of the SPI scheme.