On Nov. 29, HKMA reviewed the sale and distribution of ESG products.
HKMA conducted review on sale, distribution of green, sustainable investment products by registered institutions (RIs), prompted by increasing demand for these products.
Sets out expected standards and good practices in annex I, and FAQs in annex II.
Review
Covered various types of products like funds, bonds, structured products; examining classification framework, selling process, and control measures implemented by RIs.
Some RIs have established good practices related to product due diligence, customer sustainability preferences, disclosure, governance, staff training, and bookbuilding.
HKMA has incorporated international standards into expected standards, which pertain to RIs' marketing or classifying investment products as green and sustainable.
Effectiveness
RIs shall comply with expected standards within 12 months from the date of issuance.
