The cooling-off period that allows investors to cancel purchases of some financial products has reduced complaints for insurance firms and the practice should be extended to other investment products, Chan Kin-por, the legislator representing the insurance sector said. Mr Chan said 10 to 15 per cent of policies sold are cancelled during the cooling-off period. 'Many policyholders change their minds ... after buying policies. Some cancellations may be because they believed they were pressured by agents,' Mr Chan said. Hong Kong's banking and securities watchdogs have agreed to introduce a cooling-off period for financial product purchases. The practice is already in use by the insurance sector and the Hong Kong Monetary Authority and the Securities and Futures Commission believe it should be appear in the banking and securities sectors as well. The recommendations came in reports called for by the government, after United States investment bank Lehman Brothers collapsed and left 43,000 Hong Kong investors with heavy losses after buying Lehman minibonds distributed to local banks and brokers. The victims claimed they were misled by brokers or banks into buying the minibonds as an alternative to time deposits, when in fact they were risky, credit-linked notes. The regulators' reports, released last month, said Hong Kong should consider the practice used in Britain, Singapore and Australia, which had cooling-off periods of 14 to 30 days on some investment products. The Hong Kong Federation of Insurers, allows customers to cancel their policies up to 21 days after signing. Kenny Lee Yiu-sun, chairman of the Hong Kong Stockbrokers Association, said he was worried such rules might be abused by some customers to monitor a product's performance. However, Mr Chan said insurers avoided such abuse by requiring policyholders to bear the loss in the market value of their policies if the value of the investment dropped during the cooling-off period.