Proposed Amendments to The Securities and Futures (Professional Investor) Rules

The Securities and Futures Commission (“SFC”) on 1 March launched a consultation on its proposed amendments to the Securities and Futures (Professional Investor) Rules (Cap. 571D) (“Consultation Paper”). The proposed amendments include expanding the categories of persons who will qualify as professional investors and allowing the aggregation of certain assets and alternative forms of evidence for determining and ascertaining whether a person meets the relevant asset or portfolio thresholds to qualify as a professional investor under the Professional Investor Rules. The SFC indicated that the comments it accepts will be incorporated into the proposed new rules, which will be subject to negative vetting by the Legislative Council before becoming effective.

With the assistance of the Investment Products and Financial Services Committee, the Law Society has reviewed the Consultation Paper and has prepared a submission. In the submission, the Law Society pointed out various salient issues which should merit further and closer examination by the SFC.

A copy of the above submission can be found at http://www.hklawsoc.org.hk/pub_e/news/submissions/20170403.pdf.

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