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Product Due Diligence And The Suitability Of Minibonds: Taking The Benefit Of Hindsight, Christopher Chao-Hung Chen
Product Due Diligence And The Suitability Of Minibonds: Taking The Benefit Of Hindsight, Christopher Chao-Hung Chen
Christopher Chao-hung Chen
This article focuses on some problems arising from applying the product due diligence requirement of the suitability rule to complex financial products. The article draws several conclusions. First, the ‘not unsuitable’ test should be adopted to reduce legal uncertainty. Second, the comparative risk approach is a better choice in assessing the suitability of investment products. However, there must be further elaboration of the classification of product risk. Third, there must be a balance between risk and return to avoid risk mismatches in product design. Fourth, what have been termed minibonds raise the problem of documentation suitability. Though it is difficult …
Classification Of Clients Of Financial Firms: From Comparative Law Perspective, Christopher Chao-Hung Chen
Classification Of Clients Of Financial Firms: From Comparative Law Perspective, Christopher Chao-Hung Chen
Christopher Chao-hung Chen
The purpose of this article is to examine current regulations under Taiwan law with regard to classification of clients of financial firms in Taiwan from the perspective of comparative law. After comparing with relevant laws in the EU, UK, USA, Hong Kong, and Singapore, this article argues that there are certain points worth further consideration and revision under Taiwan law: first, the level of current regulation in Taiwan and its scope are rather limited compared with foreign laws; secondly, it is necessary to introduce other standards than mere ‘total assets’ in order to determine a ‘large’ enterprise; and thirdly, current …