Regulations for Financial Advisory Services

Can a financial adviser distribute capital markets products?


  • If the financial adviser falls within the exemption in Paragraph 2(1)(j) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations.

    If the financial adviser falls within the exemption in Paragraph 2(1)(j) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations, including but not limited to where the financial adviser is dealing in capital markets products that are specified products other than OTC derivatives contracts by passing on an order to purchase or sell any specified product (other than an OTC derivatives contract) on behalf of a customer to whom the financial adviser provides a financial advisory service mentioned in paragraph 1 or 2 of the Second Schedule to the Financial Advisers Act (Cap. 110) (whether or not the customer relies on the advice given as part of the financial advisory service) to a holder of a capital markets services licence for dealing in capital markets products that are specified products other than OTC derivatives contracts or a person exempted under section 99(1)(a) or (b) of the Securities and Futures Act (Cap. 289), who carries on business in dealing in capital markets products that are specified products other than OTC derivatives contracts.

    Paragraph 2(1)(j) of the Second Schedule, Securities and Futures (Licensing and Conduct of Business) Regulations