Manulife pulls loan product for rich Hong Kong clients after scrutiny (opens original article in a new tab)

Manulife withdrew a high-leverage insurance product for wealthy Hong Kong clients amid regulatory scrutiny, following concerns over aggressive financial structures and potential risks to policyholders.

• Manulife removed a leveraged insurance product for Hong Kong's wealthy clients due to regulatory and competitive scrutiny.
• The product allowed $80 million policies with 4x leverage and over 10% returns, requiring $14.4 million initial investment and $56 million borrowed at 3.39% interest.
• Hong Kong regulators have increased oversight on premium financing, capping return illustrations at 6.5% for non-HKD policies and 6% for HKD policies.