Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan

This article compares new product intervention rules in Singapore, Hong Kong and Taiwan for complex structured investment products. Singapore’s approach is to improve firms’ internal safeguard, while Hong Kong’s approach is to require prior authorisation for new unlisted structured investment produc...

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Main Author: CHEN, Christopher C. H.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2016
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Online Access:https://ink.library.smu.edu.sg/sol_research/2212
https://ink.library.smu.edu.sg/context/sol_research/article/4164/viewcontent/SSRN_id2826206.pdf
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Institution: Singapore Management University
Language: English
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spelling sg-smu-ink.sol_research-41642017-08-11T02:38:17Z Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan CHEN, Christopher C. H. This article compares new product intervention rules in Singapore, Hong Kong and Taiwan for complex structured investment products. Singapore’s approach is to improve firms’ internal safeguard, while Hong Kong’s approach is to require prior authorisation for new unlisted structured investment products by the securities regulator. Taiwan’s approach is to have a self regulatory body reviewing a product beforehand. This article argues that it is difficult to review the merit of a financial product in advance and thus it is difficult to have a true gatekeeper for toxic financial products. Before product intervention, we must first identify clear objectives. Regulators have to strengthen the accountability of the reviewer and create concrete review standards if additional ex ante product review is preferred. Regulators may also consider setting up some minimum standards for retail financial products through public debate in order to filter unwanted features from the retail market. 2016-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sol_research/2212 https://ink.library.smu.edu.sg/context/sol_research/article/4164/viewcontent/SSRN_id2826206.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Yong Pung How School Of Law eng Institutional Knowledge at Singapore Management University Financial Consumer Protection Product Intervention Structured Products Asian Studies Consumer Protection Law
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Financial Consumer Protection
Product Intervention
Structured Products
Asian Studies
Consumer Protection Law
spellingShingle Financial Consumer Protection
Product Intervention
Structured Products
Asian Studies
Consumer Protection Law
CHEN, Christopher C. H.
Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan
description This article compares new product intervention rules in Singapore, Hong Kong and Taiwan for complex structured investment products. Singapore’s approach is to improve firms’ internal safeguard, while Hong Kong’s approach is to require prior authorisation for new unlisted structured investment products by the securities regulator. Taiwan’s approach is to have a self regulatory body reviewing a product beforehand. This article argues that it is difficult to review the merit of a financial product in advance and thus it is difficult to have a true gatekeeper for toxic financial products. Before product intervention, we must first identify clear objectives. Regulators have to strengthen the accountability of the reviewer and create concrete review standards if additional ex ante product review is preferred. Regulators may also consider setting up some minimum standards for retail financial products through public debate in order to filter unwanted features from the retail market.
format text
author CHEN, Christopher C. H.
author_facet CHEN, Christopher C. H.
author_sort CHEN, Christopher C. H.
title Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan
title_short Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan
title_full Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan
title_fullStr Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan
title_full_unstemmed Product intervention for retail structured investment products: A comparison of rules in Singapore, Hong Kong and Taiwan
title_sort product intervention for retail structured investment products: a comparison of rules in singapore, hong kong and taiwan
publisher Institutional Knowledge at Singapore Management University
publishDate 2016
url https://ink.library.smu.edu.sg/sol_research/2212
https://ink.library.smu.edu.sg/context/sol_research/article/4164/viewcontent/SSRN_id2826206.pdf
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