Who is the owner of this decision to assert the stability of the hierarchy of portfolio performance factors, without considering regulatory constraints?
The power laws are an observation of results, not a universal guarantee, because our RACI framework in Hong Kong imposes clear limits.
For example, strict SFC risk management requirements can invalidate an excellent investment decision if it has not obtained the necessary sign-off.
Without a clear chain of command and proper documentation for these specific jurisdictional constraints, the impact of power laws is conditional and subject to procedural escalations.