Collective investment schemes (CISs) usually involve the pooling of funds from various investors to invest in assets which are managed by an operator of the arrangement, and investors do not have day-to-day control over the assets.

Under current regulations, unless exempted, all CISs must obtain the SFC’s authorisation before they can be offered to the Hong Kong public. Investors should exercise extreme caution with the unauthorised investment products that exhibit CIS characteristics. Unauthorised investment products may be highly risky, have very limited or no protection, and investors may lose all their investments.