IIQE Paper 5 Investment Assets question: issuing to the public an advertisement about a collective investment scheme

Answer: B. the SFC has authorised the issue, or it is exempted

Answer: the SFC has authorised the issue, or it is exempted. Section 103 makes it an offence to issue such advertisements, invitations or documents to the public unless the SFC authorises the issue under section 105(1), or an exemption applies.Why not the others:• the issuer is an authorized insurer in Hong Kong: Being an authorized insurer does not by itself remove the need for SFC authorisation of the issue.• the advertisement is printed in both English and Chinese: Language is not the test; the test is SFC authorisation or an exemption.• the fund's trustee has approved the advertisement in writing: Trustee approval is not the test under section 103; SFC authorisation or an exemption is.Watch out: Thinking a trustee's or insurer's approval is enough.Rule: SFO s103: issuing CIS advertisements, invitations or documents to the public is an offence unless authorised by the SFC under s105(1) or exempted; s104 lets the SFC authorise CIS.Source: IA Investment-linked Long Term Insurance Examination Study Notes, 2024 Edition (7th ed., Nov 2024; for exams from 17 Feb 2025), 3.7, p. 3/32