Under the new regime, which commenced on Saturday, SFC-authorised funds and investment-linked assurance schemes (ILAS) are obliged to provide investors with a product key facts statement (KFS) and an offering document.
The KFSs are designed to explain investment products in plain language to consumers, summarising key features, associated risks, fees and charges related to the investment product.
Central to the new disclosure regime is the SFC Handbook for unit trusts and mutual funds, ILAS and unlisted structured investment products. All SFC-authorised funds and ILAS have a 12-month transitional period to comply.
To help facilitate a smooth transition to the new regime, the SFC has also held 12 briefing sessions for more than 1,000 attendees. Over ten new forms and checklists, 22 FAQs as well as five circulars/letters have been issued to provide the fund and insurance industries with guidance and clarifications on matters relating to the new regime.
When the transitional period is over, the SFC will begin a surveillance programme on the KFS and revised offering documents.
Alexa Lam, acting chief executive officer at the SFC, said: “Close co-operation of the fund and insurance industries was critical to the successful implementation of these new measures.”