Implementation of recommendations in the HKMA's Report on Issues Concerning the Distribution of Structured Products Connected to Lehman Brothers ("the HKMA's Report")

Our Ref.: B1/15C

25 March 2009

The Chief Executive
All Authorized Institutions

Dear Sir/Madam,

Implementation of recommendations in the HKMA's Report on Issues Concerning the Distribution of Structured Products Connected to Lehman Brothers ("the HKMA's Report")

Further to my circular of 9 January 2009 requesting all Registered Institutions (RIs) to implement a number of recommendations in the HKMA's Report, the HKMA and the Hong Kong Association of Banks (HKAB) have, through the Retail Banking Taskforce on Sale of Investment Products established by the HKAB, further discussed and worked out the implementation details for these recommendations. All RIs are expected to implement these recommendations according to the implementation details set out in the two Annexes to this letter. The HKMA will in due course conduct onsite examination to review RIs' implementation of these recommendations.

If you have any questions on the above, please get in touch with your usual supervisory contact at the HKMA.

Yours faithfully,

Nelson Man
Executive Director
(Banking Supervision)

c.c.

Chairman, Hong Kong Association of Banks
Chairman, The Deposit-taking Companies Association

Encl.

Annex 1 (PDF file, 1.1MB)
Annex 2 (PDF file, 396KB)