Paragraph 15 of the Code, which covers professional investors, is completely replaced. The new paragraph 15 sets out the conditions for derogations from the requirements of the Code that may apply to the way in which intermediaries treat different categories of investors. In the 2013 consultation paper, the SFC proposed to include the code adequacy condition as a contractual clause with reference to customer agreements. After taking into account the views of respondents, the SFC proposes to include a new adequacy and non-acceptance clause in customer agreements: b. Customer identity verification bulletin when opening the account on October 24, 2016 a. Bulletin of July 12, 2018 In the FAQs, it is specified that an intermediary, corporate finance activities (z.B. Advice in the event of new share placements or offers of preferential rights, merger and takeover advice, corporate restructurings, financing activities, subscription and sponsorship) falling within the definition of corporate finance in Part 2 of the Securities and Futures Regulation (SFO) should in principle refer to paragraph 6.4 of the Code to justify the use of its discretion and not the inclusion of the eligibility clause in the customer association. 1999, 1999, 1990, 1990, 1 The opening of the online account (remote / non-face-to-face) has been facilitated in the sense that there are now clear instructions from the SFC, which is acceptable, and this guide is specifically about the types of technologies. This should be particularly relevant for operators of online platforms. However, the requirements are heavier than some market participants had hoped. Currently, a breach of the code`s adequacy requirement may lead the CFS to take disciplinary action against the intermediary. However, the SFC cannot require the intermediary to pay compensation to aggrieved customers for losses resulting from breaches of the code.

The new clause gives aggrieved investors a contractual right to seek redress. recognize the inclusion of non-trust clauses in customer contracts or elsewhere, which require customers not to rely on the advice or recommendations of intermediaries; and institutional investors (mainly investors who are themselves regulated companies) will continue to be exempted from the quality and other investor protection requirements of the Code. In light of the issues raised by Herbert Smith Freehills following an industry consultation, the Securities and Futures Commission (SFC) has issued guidelines (FAQs) on the application of the new paragraph 6.2(i) of the client agreement requirements in accordance with the Code of Conduct for Persons Licensed or Registered by the SFC (Code), i.e. the mandatory suitability clause (selection clause). on corporate finance mandates. The SFC also stated in the FAQs that it expects intermediaries to make revised customer agreements available promptly so that existing customers can conclude them as quickly as possible (by modifying or replacing their existing agreements). This is the second time that the SFC has created a website specializing in the requirements of the Code of Conduct. The first was “The Suitability Requirement”. In general, industry has welcomed this approach, as it facilitates the search for the corresponding guidelines.

“If we [the intermediary] request or advise the sale of a financial product to you [the client], the financial product must be appropriate for you, taking into account your financial situation, investment experience and investment objectives. . . .