SFC unveils enhancements to facilitate client interaction under Cross-boundary Wealth Management Connect

The Securities and Futures Commission (SFC) today announced new enhancements to the Cross-boundary Wealth Management Connect Pilot Scheme (Cross-boundary WMC) to foster closer communication between participating licensed corporations (Participating LCs) and their clients under the scheme (Note 1).         

The SFC has set out in a circular the implementation details of the enhancements for client interaction, with key arrangements including:

• Participating LCs can now obtain one-off written consent – valid for up to one year – from Southbound Scheme clients (Note 2) who are not physically present in Hong Kong, thereby enabling these LCs to explain product information based on each client’s needs and selected product categories;

• Upon the request of Southbound Scheme clients, Mainland partner brokers (Note 3) within the same corporate groups as the Participating LCs (Partner Brokers) can arrange online three-party dialogues with the Participating LCs at their respective places of business, where the Participating LCs can explain product information to their clients;

• With one-off written consent from Southbound Scheme clients, Participating LCs can provide their clients with research reports on individual investment products prepared by their Partner Brokers.

The above arrangements also apply to the Northbound Scheme.

“These enhancements to the Cross-boundary WMC would enhance client experience with Participating LCs during their interaction,” said Ms Julia Leung, the SFC’s Chief Executive Officer. “With enhanced communication and improved access to information, investors can be better informed when making investment decisions which would support the continuous and sustainable development of the Cross-boundary WMC.”

The SFC will continue to work closely with the industry and regulatory authorities to further enhance the Cross-boundary WMC and support its growth as a vital initiative for cross-boundary financial connectivity and development in the Greater Bay Area.

End

Notes:

1. Please see “Circular to Licensed Corporations - Participation in Cross-Boundary Wealth Management Connect Pilot Scheme” published by the SFC on 24 January 2024  for details and relevant Annexes.

2. The Southbound Scheme clients refer to Mainland investors who have opened dedicated investment accounts with the Participating LCs and have opened or designated their personal fund accounts with eligible Mainland brokers as dedicated remittance accounts under the Southbound Scheme, whilst the Northbound Scheme clients refer to Hong Kong investors who have opened dedicated investment accounts with eligible Mainland brokers and have opened dedicated remittance accounts with the Participating LCs under the Northbound Scheme.

3. Mainland partner broker refers to a Mainland broker that has been confirmed by the relevant Mainland regulatory authorities as eligible to provide Cross-boundary WMC services.