Expert criticizes claims HK reforms will cause ‘collateral damage’

By International Adviser, 20 Apr 15

Contrary to concerns from an association of IFAs which claimed regulatory reforms in Hong Kong will cause “collateral damage”, one expert has argued these changes are “long overdue” and the industry will eventually recover.

“Financially toxic”

“I do think there will be a demise of the firms whose primary business was selling these very lucrative savings plans.

“These products are financially toxic and eliminating the sale and the seller is a good thing. Plenty of the IFAs in Hong Kong will survive and thrive, particularly those that have always offered a diverse range of products and services to their clients, not limiting themselves to selling savings plans, and who put their clients’ interests ahead of commissions.

“I sincerely hope that the sale of these or similar products that are harmful to investors does not ever recover.”