Singapore financial administration (Singapore) has Authority in the requirements, since 1 January 2012, including insurance agencies, all financial intermediaries, to consumer sales in investment products to the customer need before investment cognitive (knowledge is) and investment experience for formal evaluation.
The new rules will apply to particular Investment Products (is completely, SIPs) as the Products of sales, including listed Investment Products (such as futures and that SIPs) exchange-traded funds (etfs), and private particular Investment Products (unlisted SIPs) such as Investment is concatenate insurance, etc.
The new rules will be in 2012 on January 1, intermediary agencies, there will be five months to reach the transitional period of the new requirements. At the same time, those who intentionally sales particular investment product intermediary agencies, adopt the rules should be. The hkma also issued an investment guide to help consumers understand the relevant regulations and in to buy a specific investment products can get advice from financial institutions.
Under the new rules, intermediary institutions must implement Customer cognitive Assessment (Knowledge that Assessment) to assess whether consumers with the related Knowledge or experience, can understand purchase private particular investment risk of product and characteristics. For specific investment products listed, intermediary institutions must also be to implement customer cognitive assessment to confirm the consumer is buying products, with understanding before the complex structure of such products or derived products related to the risk of and characteristics of the ability.
If the customer relative lack of knowledge and experience, will be informed. If the customers are still relevant trade, agency must be to provide the appropriate advice, as well as to the customers will also take such as lower trading limits and other security measures.
In addition, all engaged in SIPs of offering advice transaction or intermediary organization representative must be through the relevant the product of the additional tests. At present, the hkma is working with Singapore Insurance Institute (Singapore) and Singapore that College of the Banking and financial Institute (Institute of Finance)-one cooperation, preparing to launch the test before the end of this year.
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