On June 28, 2024, the Securities and Futures Commission ("SFC") published a circular to issuers of SFC-authorised investment-linked assurance schemes ("ILAS") to notify them of enhancements to its streamlined approach for vetting and approving revised marketing materials of SFC-authorised ILAS under the Code on Investment-Linked Assurance Schemes ("ILAS Code").
To promote better efficiency and adopt a more risk-based approach, the SFC enhanced the existing streamlined measures to cover all immaterial changes to ILAS marketing materials already authorised by the SFC ("Authorised Marketing Materials").
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Overview
With immediate effect from the date of the circular, it is no longer necessary to seek further authorisation from the SFC for immaterial changes to Authorised Marketing Materials, provided that all of the overriding principles and requirements ("Overriding Requirements") set out below are satisfied:
the changes do not amount to material changes to the Authorised Marketing Materials;
the contents and format of the revised marketing materials remain fundamentally the same as the version previously authorised by the SFC;
the revised marketing materials present a balanced picture of the ILAS with adequate risk disclosures; and
the updated contents are consistent with the disclosure in the ILAS offering documents or contents of notices to policyholders previously authorised by or filed with the SFC.
Material changes (i.e. changes to Authorised Marketing Materials which do not satisfy the above Overriding Requirements), are still be subject to the SFC's prior authorisation before their publication.
The SFC's FAQs relating to ILAS have been also been updated to provide more practical guidance, including examples of immaterial changes to Authorised Marketing Materials and notable matters for ILAS issuers when revising Authorised Marketing Materials.
Whilst the streamlined measures enhance the flexibility and efficiency of ILAS issuers when revising Authorised Marketing Materials, the SFC has reminded ILAS issuers of their duty to exercise due care and professional judgement in deciding whether revised marketing materials meet the requirements set out in the circular and the updated FAQs published by the SFC.
In addition, ILAS issuers must continue to ensure that their marketing materials comply with the ILAS Code, Advertising Guidelines Applicable to Collective Investment Schemes Authorised under the Product Codes and other applicable principles and requirements in the SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products, as well as other applicable guidelines published by the SFC from time to time.