On 25 June 2010 (“Effective Date“), the Hong Kong Securities and Futures Commission (“SFC“) promulgated the SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products (“SFC Handbook“) under which all SFC-authorised funds and investment-linked assurance schemes are required to provide investors with a Product Key Facts Statement (“Product KFS“) and an offering document that satisfy a number of disclosure requirements as set out in the SFC Handbook.

A transitional period of 12 months was provided for schemes which were authorised by the SFC on the Effective Date and schemes for which applications for authorisation were submitted to the SFC prior to the Effective Date to comply with the Product KFS and other relevant disclosure requirements. During this transitional period, the SFC held briefings, provided new forms and checklists, answered frequently asked questions and issued numerous circulars and letters to provide the fund and insurance industries with guidance and clarification on matters relating to the new regime.

Since the transitional period ended in June 2011, the SFC has indicated that it will embark on a surveillance programme on the KFS and revised offering documents.

(Source: SFC’s website)