Keywords: Securities and Futures Commission, SFC, suitability requirement, contracts,

The Securities and Futures Commission (the "SFC") mandated the incorporation of the Suitability Requirement into client agreements as a contractual term. Coupled with the requirement not to include clauses in client agreements that are inconsistent with the Code of Conduct or which mis-describe the actual services provided to clients, the SFC intends the new requirements to give aggrieved investors a contractual right to claim damages and to preclude use of disclaimers. Whilst the new requirements will come into effect in June 2017, the SFC expects all financial intermediaries subject to the requirements to start reviewing and revising their client agreements immediately to ensure timely completion of the exercise, and take necessary steps to revise or re-execute their client agreements with existing clients.

Get the Full Update PDF 0.50 MB

Originally published 5 February 2016

Visit us at www.mayerbrownjsm.com

Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2016. The Mayer Brown Practices. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.