Background: SFC (regulator in Hong Kong) requires Online platforms to conduct a Suitability test on their Clients to ensure that the products being offered to them are in line with their risk profile and appetite. Clients are only to be allowed to trade products that are suitable for them.
The main aim of this regulation is to ensure that Complex products are only offered to Clients with the right risk appetite and sophistication. This regulation is applicable to all SCM HK Clients except Institutional Professional Investors.
To take the Suitability test, please log into your Saxo account:
- SaxoTraderGO: Menu > Settings > Trading Products > Take/Retake Test
For those products shown as appropriate without clients taking the test, are the ones classified as Non-Complex because of which all clients can trade them. The appropriateness for the rest of the products will change based on result of the test.
For clients categorized as Conservative or Balanced attempting to trade a complex product, there will be a disclaimer pop up preventing them from doing the trade.
For Clients categorized as aggressive or speculative attempting to place trade in Complex product, the disclaimer will pop up and will need to be acknowledged before they can proceed with the trade.
FAQs:
- Do all Clients of SCM HK need to take the Suitability test?
No, only clients who trade complex products are subject to the Suitability test, and for those client who are newly onboarded and are logging into the platform for the first time, they are also subject to the Suitability test.
- Client has done the test and is still unable to place trade in complex product. Why is that?
Clients are reminded to log off and back on for changes to take effect. If Client is unable to do a trade even after that then it is likely that they are not suitable for the product. Please reach out to client service team for more details.