Notification for New Updates on Suitability Requirements

Notification for New Updates on Suitability Requirements

Dear Sir/Madam,

Please be informed that the Securities and Futures Commission of Hong Kong (“SFC”) has revised the Code of Conduct for Persons Licensed by or Registered with the SFC and issued the Guidelines on Online Distribution and Advisory Platforms to introduce additional requirements for the sale of complex products as defined by the SFC (“Complex Products”).   The new requirements will come into effect on 6 July 2019 (“Effective Date”). Please visit our company website (www.csb.com.hk) to read about the new requirements, new product type classification, product information, warning statements and risk disclosure statements.

Prior to executing any transaction through our trading platform, you shall：

1. familiarize yourself with the information and features of the relevant product and seek independent advice from your legal, tax, accounting, financial and other professional advisers as you may consider necessary;  for the information and features of the relevant product, please refer to Hong Kong Exchange’s website (www.hkex.com.hk) and/or overseas exchanges’ website;
2. understand and consider fully the warning statements and risk disclosure statements provided by us and the inherent risks and the specific terms of each transaction;
3. evaluate the various risks associated with the relevant product and (if any) the underlying asset; and
4. satisfy yourself that the transaction fits your investment experience, investment objectives, financial position, investment time horizon, risk tolerance level, liquidity needs, (if applicable) your view of the potential performance of the issuer of the underlying asset and its creditworthiness (if applicable), tax situation, diversification needs and other relevant circumstances.

From the Effective Date, if you conduct any transactions through our trading platform, you are acknowledging that you have read, understood and accepted the new requirements relating to Complex Products and agree to be bound by them.  If you do not understand, accept or agree to them, please do not conduct any transactions through our trading platform. 

Should you have any enquires regarding this notification, please contact your Account Manager or call our customer services hotline (852) 2237 9338 / (86) 400 818 0338.

Yours sincerely,

CITIC Securities Brokerage (HK) Limited