Structured Products Compliance Solutions – CompliancePlus Consulting Limited

Compliance Services and Solutions for Equity-Linked Instruments, Derivative Warrants (“DWs”) and Callable Bull/Bear Contracts (“CBBCs”) and Structured Products

Hong Kong’s listed structured products market has developed significantly since its establishment nearly three decades ago and has historically had some of the highest trading volumes in the world. Issuers of structured products are looking for compliance services and solutions for both ongoing compliance and the launch and listing of their structured products.

Due to the complexity of structured products, it is very important that you have experienced compliance professionals who are well versed in the laws, listing rules, market practices and the specifics and characteristics of each structured product to support you in compliance.

We are here to help you with this, with a team of compliance and industry professionals who have worked with issuers and regulators on the launch and distribution of structured products and have over 20 years of industry experience.

Download – Compliance Points to Note for Issuers of Hong Kong Listed Structured Products under the Hong Kong’s Listing Rules (Chapter 15A)

Download – Structured Products Compliance Solutions and Services Offerings Presentation

We offer a wide range of compliance services and solutions to assist issuers, financial institutions, and brokers at various stages of their business in the structured products market, as below:

1. Initial Product Launch, Further Issue and Applications for listing

Assist issuers in resolving issues that may arise in their initial or follow-on issuances
Liaising with regulators such as the Hong Kong Stock Exchange (HKEX) and the Securities and Futures Commission
Preparing, drafting and/or reviewing application documents for listing of structured products such as derivative warrants, callable bull/bear contracts (“CBBCs”), equity linked instruments and other structured products such as base listing document, launch announcement and supplemental listing document and other announcements
Handles questions and requests from HKEX and regulators in the listing process
Preparing, drafting, and reviewing of products condition, indicative term sheet, sponsor agreement, distribution agreements, placing agent agreements etc. to facilitate launch and/or listing of structured products
Preparation and review of drafts of the Launch Notice, Basic Listing Documents and/or Supplementary Listing Documents
Preparing and/or reviewing drafts of the supplemental agreements amending the instrument, the registrar’s agreement or other documents relating to the existing Issue

2. Review and checking of Agreements and Marketing materials

Review of marketing materials (e.g. website, terms of use, risk warnings, disclaimers, presentation pack, presentation book, brochure, newsletter, flyer, social media posts etc.)
Review of distribution agreements, placing agent agreements
Preparing and review of product risk disclosure to ensure product suitability
Preparing and review of products due diligence related documentation

3. Continuing Obligations /Ongoing compliance

Providing compliance advice and solutions and services to issuers of listed and unlisted structured products to ensure their compliance of their continuing obligations such as compliance with the Listing Rules issued by the HKEX
Annual update of base listing programmes and offering documents for un-listed structured products
Drafting of regular or ad-hoc notices for regulatory purposes and investors’ notice
Filling in the Annual Assessment Form for Hong Kong listed structured products for the annual submission to HKEX
Advising on matters related to trading halt or suspension of trading, pricing errors

4. Providing products training

Providing products training to educate sales staff and/or intermediaries or distributors on the regulatory framework governing listed structured products and compliance best practices
Preparing training materials and training decks to enhance product knowledge
Provide regular updates on regulatory developments
Organizing products training and/or workshops

5. Other services

Acting as product managers and coordinators for issuers liaising and communicating and coordinating with various parties and managing and monitoring the progress of product launch or ongoing products review
Providing business and marketing strategies for marketing campaigns, distribution channels and products design
Conducting Products’ feasibility studies
Handling investors’ complaints and preparing and drafting responses
Handling delisting of listed structured products
Preparing and review of related delisting document for submission to the HKEX
Organizing workshops, conference, and events for industry
Preparing and drafting consultation responses for industry on regulators’ consultations or legislative proposals and coordinating responses
Vetting translations
Handling ad-hoc matter and/or project items
Arranging secondment and/or recruiting talents