Financial Dispute Resolution Centre to be organised

Tougher rules are also in store for Hong Kong’s financial institutions.

The Code of Conduct for Persons Licensed by or Registered with the Securities & Futures Commission will be amended to facilitate the setting up of the Financial Dispute Resolution Centre.

The commission said that upon amending the code, financial institutions regulated by the commission and the Monetary Authority will be required to participate in the Financial Dispute Resolution Scheme and inform their clients about their rights to refer disputes to the resolution centre.

The amendments include extending the retention period for telephone recordings for client orders from three months to six months and banning the use of mobile phones to accept client orders in the workplace.

Others are, requiring written authorisation to allow third parties to place orders in client accounts; requiring financial institutions to report to the commission suspected breaches by clients of market misconduct provisions in Parts XIII and XIV of the Securities & Futures Ordinance and requiring financial institutions to permit their employees to provide expert witness services to the commission and the Monetary Authority.

The scheme-related amendments will take effect on June 19, while the others will come into force on December 1. The amendments will be gazetted by June 1.