‘Gestapo-like’ mystery shopping is step too far

The chairman of Hong Kong’s IFA Association says regulators’ mystery shopping is a step too far

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Let us assume 97 out of 100 sales people carry out their business according to good practice and that the remaining 3 do not. This means that the SFC is going to lure 97 perfectly good people, who are going about their business in an ordinary and honest manner, into a situation where the 97 will be interrupted and disturbed and have their time wasted [buying will not occur] just so the SFC can catch 3 “unfit” people.

This method implies that the intermediary is guilty and has to prove him/herself innocent, and has to do this in front of a fake prospect.

Does the SFC have to spy like this? It could even possibly lead to prosecutions of the “unfit”!

This is immoral and almost Gestapo-like and illustrates, since the SFC has to resort to these tactics to catch the “unfit” guys, that they are bungling their regulatory responsibilities.

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