As today’s investors are more financially knowledgeable and likely to play an active role in managing at least part of their investments, wealth managers are expected to give investors optimal advice for making their own decision. To heighten the protection for the investing public or possibly call for higher standards of professionalism from financial institutions, suitability assessment becomes essential to ensure that the investment advice and products being offered to suitable investors are justified.

Those who are engaged in wealth management business connected with the provision of recommendations and/or solicitation amid selling investment products have been obliged to perform suitability assessment in accordance with the codes and guidelines promulgated by the regulators. Though these guidelines are prescriptive in nature, the suitability assessment is principle-based and entails proper controls and procedures in place for the regulated service providers to discharge their obligations. From time to time, the regulators lay down new measures and requirements in respect of the conduct and selling practices on investment products so as to combat and contain the risks of mis-selling within the financial industry.

During the past few years, CT RISK has served more than 15 banks and financial institutions of varying size and business nature in Hong Kong as to streamlining and enhancing their process of selling investment and treasury products in accordance with the latest regulatory requirements. More importantly, the solutions can provide those recipients with cost-effective value and comply with the stringent standards from the regulators as well.