DUE DILIGENCE
The Hong Kong Securities and Futures Commission (SFC) has made its position clear:
“Investment Advisers (“IAs”) should make their own enquiries and obtain full explanations from product issuers about the risks inherent in the investment products. It is not advisable for IAs to rely on prospectuses, offering circulars or marketing materials as necessarily being self-sufficient and self-explanatory.”
This regulatory expectation highlights the importance of independent and comprehensive due diligence when assessing investment products. Relying solely on issuer-provided materials is insufficient and may expose firms to significant compliance, reputational, and legal risks.
At Royal Global Compliance Consulting, we provide dedicated due diligence support services designed to relieve firms of the resource-intensive burden of reviewing complex documentation. Our approach ensures that:
- Risks inherent in the investment product are properly identified and evaluated.
- Independent enquiries and clarifications are obtained from product issuers.
- Due diligence findings are clearly documented to meet regulatory and audit requirements.
By outsourcing due diligence to experienced compliance professionals, your advisers can focus their time and expertise on serving clients and generating business, while remaining confident that all regulatory expectations are fully met.
