On 12 November 2013 the Securities and Futures Commission (SFC) issued a circular setting out streamlined measures that mean issuers of investment-linked assurance schemes (ILAS) no longer need to seek the SFC’s prior approval of certain changes to ILAS offering documents, including:
1. Changes to the description of an investment option in the ILAS offering documents where:
Notice must be given to policyholders of the changes, and the notice and revised ILAS offering documents must be filed with the SFC within one week from the date of issuance.
2. Changes to the ILAS offering documents to reflect the merger, termination or withdrawal of an investment option. Issuers will still need to seek SFC’s prior approval to the merger, termination or withdrawal itself, and will need to file the revised ILAS offering documents with the SFC within one week from the date of issuance.
These streamlined measures are welcome. They follow on from the SFC’s streamlined measures for certain changes to authorised unit trusts and mutual funds that were announced in June 2013, and that were summarised in our earlier client alert.