With new requirements on the sale of investment-linked assurance schemes products in Hong Kong, on-ground advisors are saying they are not sure how the changes would impact their business, research from Skandia International shows.

The changes relate to the memo sent by the Hong Kong Monetary Authority in April 2013, which include enhanced disclosures on commissions on the sale of ILAS products. In the Skandia study, 38.1 per cent of advisors in Hong Kong said they were not sure how the changes will impact their business. Only 28.6 per cent thought the impact would be positive, while 33.3 per cent said it would be negative. 

When it comes to how it would affect consumers, the advisors polled were more certain with 47.6 per cent saying it would have a positive impact on customers. Some 23.8 per cent said the impact would be negative, while 28.6 per cent said they were not sure. 

Forty percent voted that changing regulatory requirements was the greatest challenge to their business. 

"The uncertainty could stem from the fact that the changes were introduced at a relatively short notice, coupled with limited direct guidance to advisors on implementing the changes... Until these bed down, advisors are likely to remain uncertain," the survey wrote. 

Skandia also added that the "timing and format of further [commission] disclosures are still to be decided.

In Singapore, advisors were more certain on the changes to the Financial Advisory Industry Review, where 50 per cent believe there would be a positive regulatory impact and 44 per cent thinking it would be negative. Just 6 per cent were unsure. As with Hong Kong, advisors in the city-state said the effect on consumers would be positive (61.1 per cent), with only 22.2 per cent disagreeing and 16.7 per cent not sure.

The survey of international advisors conducted by Skandia was based on responses of 60 advisors in Hong Kong and Singapore.