New Country Manual Products
Macao 2024
BRP has updated its Country Manual Products for Macao
| Source of changes | Answers |
|---|---|
| Law / Regulation | Yes |
| New Position of the Authorities | No |
| Evolution of Expert’s Interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.
Regulatory changes
- As informed in our Alert Macao 1/2023, the new Financial System Act (“FSA”) (Law No. 13/2023) came into force on 1 November 2023 and replaced the 30-year-old Decree-Law No. 32/93/M, leading to important changes to financial services regulation in Macao.
- In this regard, we would like to reiterate that foreign services providers with no local presence in Macao (i.e. unlicensed in Macao) may continue to follow the cross-border rules provided by the current regime according to the existing BRP Country Manuals during the transitional period as prescribed by the new FSA until further legislative development and/or further notice by the authorities.
Material changes
In alignment with the Country Manual Private Banking (CM PB), the provision of macroeconomic information/reports as well as of investment research and financial analysis is only permitted on an occasional basis onshore in Macao (at target).
In further alignment with the CM PB, it is highlighted that the provision of execution only services by foreign (unlicensed) service providers onshore in Macao (at target) triggers local licensing requirements and is therefore not recommended onshore in Macao (at target). Accordingly, the CM P BT answers the relevant scenarios with “Grey zone/NO”.
In addition, the active provision of investment advice outside the scope of an ongoing advisory agreement (spot advice) as well as the active provision of product related marketing activities via remote means of communication (remote) are not recommended as they trigger licensing requirements. Accordingly, the CM P BT now provides the answer “Grey zone/NO”.
On the other hand, the active provision of cross-border investment advice within the framework of a written advisory agreement is considered to be a “grey zone”. The CM P BT answers the relevant scenarios accordingly with: “Grey zone/YES: If the asset class is covered by the advisory agreement”. As there are currently no formal rules or official positions from local authorities to rely on in this regard, a “cautious approach” is therefore recommended.
Although the concept of “reverse solicitation” is not officially recognised in Macao, it is considered to be a “grey zone” when activities are conducted via remote means of communication into Macao at the investor’s initiative. Accordingly, the CM P BT provides the answer “Grey zone”. Please note, however, that there are currently no formal rules or official positions from local authorities to rely on in this regard, a “cautious approach” is therefore recommended.
Finally, there is no longer a requirement to provide product documentation based on the advice of our local counsel. It is nevertheless recommended to provide prospective investors with sufficient information to allow them to take informed investment decisions.
For more information, please contact us: info@brpsa.com
Geneva, July 17th, 2024