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Financial and Monetary Affairs
Policyholders' Protection Fund
The government is preparing the enabling legislation to establish a Policyholders' Protection Fund to enhance market stability and provide a safety net for policyholders in the event of an insurer's insolvency.
Enhanced Regulation of Investment-linked Assurance Scheme Products
The Insurance Authority continues to work closely with the Hong Kong Federation of Insurers (HKFI), the HKMA and the SFC to formulate policyholder protection measures relating to the sale of Investment Linked Assurance Scheme (ILAS) products. New measures were introduced in 2013 to improve the transparency of product features at the point-of-sale, make sure that investors were aware of their rights to seek information on remuneration receivable by insurance intermediaries, and extend audio-recorded post-sale confirmation calls (originally limited to vulnerable policyholders) to all policyholders. In July, the Investor Education Centre also rolled out a campaign to enhance public understanding of ILAS products.
New Regulatory Regime for Stored-Value Facilities and Retail Payment Systems
Public consultation was launched in May on proposals to establish a regulatory regime for stored value facilities and retail payment systems in Hong Kong to ensure the safety and soundness of such products and services and to maintain public confidence in payment systems. The proposed legislative amendments will be introduced to the Legislative Council in the 2014-15 legislative year.
Investor Education Centre
Established in November 2012 as a subsidiary of SFC and supported by all the four financial regulators in Hong Kong (the SFC, the HKMA, the Mandatory Provident Fund Schemes Authority, and the OCI), the Investor Education Centre (IEC) aims to improve financial literacy in Hong Kong and better equip the general public with skills and knowledge to make informed financial decisions and manage their money wisely.
In 2013, the IEC released its three-year strategic plan (2013-2016), launched a wide range of education campaigns and workshops, and provided resources to help educate and inform the public about financial planning, money management, investing concepts, financial products, as well as the importance of consumer and investor rights and responsibilities.
Financial Dispute Resolution Centre
The Financial Dispute Resolution Centre (FDRC) was established in 2012 to provide an independent, accessible and efficient avenue for resolving monetary disputes between individual clients and financial institutions. Since its establishment, the FDRC has endeavoured to promote mediation as a means to resolve disputes among financial institutions and investors. To help the community better understand how FDRC services may help resolve their monetary disputes with financial institutions, FDRC launched a free public enquiry meeting service in
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The Securities and Futures Ordinance mandates the SFC to help the public understand financial products and services and their risks. In this connection the SFC's investor education function is delegated to its subsidiary, the IEC.
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