Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Guidelines & Circulars

Our Ref.: B1/15C

23 June 2009

The Chief Executive
All Registered Institutions

Dear Sir/Madam,

Circular Issued by the Securities and Futures Commission (SFC) Regarding Risk-disclosure Duties of CLN Issuers

I am writing to draw your attention to a circular issued by the SFC on 17 June 2009 ("the SFC Circular"). The SFC Circular reminds issuers of credit-linked notes (CLN) of their risk-disclosure duties and urges them to disclose in a timely manner meaningful and easy-to-understand information about risks associated with the notes they issued so that investors can make informed decisions or conduct risk analysis of their credit exposure. A copy of the SFC Circular is attached. At the same time, trustees of CLNs may also issue notices from time to time to registered noteholders.

As registered institutions (RIs), rather than investors, are registered holders of these notes, they are the recipients of these notices from issuers or trustees. RIs are required to despatch these notices to relevant investors promptly. Also, as investors do not normally have direct access to CLN issuers or trustees, they will have to rely on RIs that have sold them the notes to answer any queries on the information provided by the issuers and trustees. RIs are therefore required to take appropriate steps to assist investors' understanding of these information. Such steps include but are not limited to:

  • provide a dedicated enquiry hotline for investors to make enquiries on the information received;
  • ensure that responsible staff manning the hotline are well briefed on these notices so that they can competently handle enquiries from investors; and
  • where necessary, approach relevant CLN issuers or trustees, as the case may be, for further information, to ensure that investors' enquiries are properly addressed.

For monitoring purpose, RIs should maintain a register of the notices received from CLN issuers and trustees, and when these notices were passed to investors. Where necessary, the HKMA will inspect the register of individual RIs through onsite examination and/or offsite review to assess compliance with the relevant requirements.

Yours faithfully,

Nelson Man
Executive Director
(Banking Supervision)

Encl. Circular to issuers of retail credit-linked notes (PDF file, 50KB)

Last revision date: 1 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery