The Securities and Futures Commission (SFC) informs issuers of SFC-authorised investment-linked assurance schemes (ILAS) of enhancements to its streamlined approach for vetting and approving revised marketing materials of SFC-authorised ILAS under the Code on Investment-Linked Assurance Schemes (ILAS Code) with immediate effect.
The SFC regularly reviews and seeks to improve its processes wherever practicable without compromising investor protection. To promote better efficiency and adopt a more risk-based approach, the SFC has enhanced the existing streamlined measures to cover all immaterial changes to those ILAS marketing materials already authorised by the SFC (Authorised Marketing Materials). Enhanced streamlined approach
With immediate effect, further authorisation from the SFC is no longer required for immaterial changes to the Authorised Marketing Materials, provided that all of the following overriding principles and requirements (Overriding Requirements) are satisfied: (a) the changes do not amount to any material changes to the Authorised Marketing Materials; (b) the contents and format of the revised marketing materials remain fundamentally the same as the version previously authorised by the SFC; (c) the revised marketing materials present a balanced picture of the ILAS with adequate risk disclosures; and (d) the updated contents are consistent with the disclosure in the ILAS offering documents or contents of notices to policyholders previously authorised by or filed with the SFC.
Material changes, ie, changes to the Authorised Marketing Materials which do not satisfy the Overriding Requirements, will still be subject to the SFC’s prior authorisation before their publication.
The Frequently Asked Questions relating to Investment-Linked Assurance Schemes (FAQs) have been updated[1] to provide more practical guidance to the industry, including examples of immaterial changes to the Authorised Marketing Materials as well as notable matters for ILAS issuers when revising the Authorised Marketing Materials. Obligations of ILAS issuers
The aforementioned streamlined measures are expected to enhance the flexibility and efficiency of ILAS issuers when revising the Authorised Marketing Materials. Issuers are reminded of their duty to exercise due care and professional judgement to decide whether the revised marketing materials would meet the requirements set out herein and in the updated FAQs.
ILAS issuers must ensure their marketing materials comply with the ILAS Code, Advertising Guidelines Applicable to Collective Investment Schemes Authorised under the Product Codes and other applicable principles and requirements in the SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products, as well as other applicable guidelines published by the SFC from time to time. Effective Date
This circular is effective as of 28 June 2024. It is also applicable to outstanding applications of immaterial changes to Authorised Marketing Material made before the effective date but authorisation has not been granted. For the avoidance of doubt, the enhanced streamlined approach will not apply to new marketing materials which have not been authorised by the SFC.
Should you wish to clarify any aspects of this circular, please contact the relevant case officers in charge.
Investment Products DivisionSecurities and Futures Commission
[1] The updated FAQs are accessible on the SFC’s website at: https://www.sfc.hk/en/faqs/Publicly-offered-investment-products. Please refer to the updated Question 15 and the new Questions 15A and 15B under section 1.
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