Law change to protect small investors

PUBLISHED : Friday, 23 April, 2010, 12:00am
UPDATED : Friday, 23 April, 2010, 12:00am

Regulations governing structured products such as Lehman Brothers' minibonds will be transferred from the Companies Ordinance to the Securities and Futures Ordinance in a bill to be put to the Legislative Council this year. The move, which will give the Securities and Futures Commission full control over such products, follows the minibond fiasco in 2008 when more than 20,000 investors suffered losses after the collapse of issuer Lehman. The law change will allow the SFC to issue guidelines on regulations for the products to enhance protection for small investors.