Streamlining of Audio-recording Requirements for Sale of Investment and Insurance Products

The Hong Kong Monetary Authority (HKMA) has announced a streamlined approach to audio-recording requirements for investment and insurance product sales conducted via video-conference. Audio-recording will now only be required under specific circumstances, such as transactions involving complex products or solicitation of non-complex products with risk mismatches. The HKMA also introduced alternative measures for compliance, including the use of digital tools for transaction documentation, provided these measures offer equivalent customer protection and meet regulatory standards. Financial institutions must implement robust controls to ensure compliance and prevent undue influence or misrepresentation by sales staff.

Resources: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20241220e2.pdf