Why is determining complex product important?
To enhance investor protection in regards to complex products, whose more complex terms, features and risks may not be easily or readily understood by a typical retail investor, the SFC extended its suitability requirements to the sale of complex products.

Financial Institutions (FIs) should determine whether a product may be treated as non-complex or complex with due skill, care and diligence. FIs should ensure key product terms and complex features are provided to the investor. There should be prominent and clear warning statement(s) on their Online Platforms, where appropriate, to warn clients about a complex product prior to and reasonably proximate to the point of sale or advice.