A Complex Product is an investment product whose terms, features and risks are not reasonably likely to be understood by a retail investor because of its complex structure.
Set out below is a non-exhaustive list of examples of investment products that are considered to be Complex Products published by the Hong Kong SFC:
Complex products - Derivatives traded on an exchange
- Equity derivatives traded on the SEHK (eg, DWs, CBBCs and listed share options);
- Synthetic ETFs and futures-based ETFs authorized by the SFC and traded on the SEHK;
- L&I products authorized by the SFC and traded on the SEHK; and
- Any other investment product the SFC may specify from time to time.
Other complex products
- Complex bonds. Complex bonds are bonds with special features (including, but not limited to, perpetual or subordinated bonds, or those with variable or deferred interest payment terms, extendable maturity dates, or those which are convertible or exchangeable or have contingent write down or loss absorption features, or those with multiple credit support providers and structures) and/or bonds comprising one or more special features;
- SFC authorized derivative funds;
- SFC-authorized hedge funds;
- SFC-authorized unlisted structured investment products (including SFC-authorized equity-linked deposits, equity-linked instruments/investments, etc.);
- Other non-exchange-traded structured investment products;
- Security tokens, and
- Any other investment product the SFC may specify from time to time.
Endowus requires fund managers to provide information such as derivative usage and investment guidelines on each of the funds offered on our platform when determining whether it is a Complex Product or not.