Sfc Client Agreement Consultation

In the absence of a final result and a date of entry into force of the customer agreement, intermediaries should be aware of the need to further amend customer agreements. It would be desirable for intermediaries to verify compliance with the new paragraph 6.5 of the Code, although these provisions may not enter into force for some time. 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 consultation participants asked whether the new clause would apply to corporate finance advisors. any erroneous description of the services to be provided to customers. Following the consultation, the SFC took into account market concerns about the practical difficulties encountered in describing the actual services at the time of the conclusion of the customer agreement. Instead of following up on its original proposal and amending paragraph 6.2(d) of the Code, the SFC decided to provide further guidance for the application of existing paragraph 6.2(d). The SFC acknowledged in the FAQs that how existing customer agreements can be re-enforced to comply with new customer agreements depends on the circumstances and can be done in different ways (e.g.B. by negative consent or by re-legaping the contract). Intermediaries are encouraged by the SFC to get legal advice in case of doubt. In May 2018, the Securities and Futures Commission (SFC) published its consultation findings on proposed disclosure requirements for intermediaries providing discretionary account management services. This consultation finding was published as part of the consultation on this topic published by the CFS in November 2017.

In view of the current practice of allowing certain discrete account managers and/or their employees to obtain benefits from product issuers and generate commercial profits that may encourage them to market certain products for their clients as part of discretionary portfolios, the SFC considers it useful to draw customers` attention in advance to such rewards or benefits, to address the potential risk of conflicts of interest and enable investors to achieve better results. Informed decisions in the choice of discretionary account administrators. . . .

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