Hong Kong SFC reminds investors to provide their ID to regulator and exchange

Rick Steves

“The launch of the investor identification regime is in line with international practices. Regulators will have real-time information about investor identity for securities orders. This will no doubt strengthen our market surveillance capability, uphold market integrity and bolster investor confidence.”

The Securities and Futures Commission (SFC) of Hong Kong has reminded the investing public about the incoming HK investor identification regime, which will commence on 20 March 2023.

The SFC asked investors to respond to their intermediaries’ requests for consent to transfer their client identification information to the regulatory authority and to the stock exchange.

Upon the launch of the HKIDR, relevant licensed corporations and registered institutions are required to tag Broker-to-Client Assigned Numbers (BCANs) to securities orders to be executed on SEHK and to off-exchange trades reportable to SEHK, and submit to the SFC and SEHK their clients’ names and identity information.

Those who do not comply will be unable to buy securities

The new investor ID regime and Hong Kong’s data privacy laws, including the Personal Data (Privacy) Ordinance, require intermediaries to obtain individual clients’ express consent to submit their identification information to the SFC and the Stock Exchange of Hong Kong Limited (SEHK).

According to the regulator, the information is encrypted in the data repository and accessible only to authorized personnel of the SFC and SEHK.

The agency further added that individual investors who have not provided this consent will only be able to sell their securities holdings on SEHK but not buy additional securities.

Julia Leung, Chief Executive Officer at the SFC, commented: “The launch of the investor identification regime is in line with international practices. Regulators will have real-time information about investor identity for securities orders. This will no doubt strengthen our market surveillance capability, uphold market integrity and bolster investor confidence.”

Licensed firms will have to assign Broker-Client number to each client

It was in August 2021 that the SFC issued consultation conclusions on proposals to introduce an investor identification regime (HKIDR) at trading level for the securities market in Hong Kong and an over-the-counter securities transaction reporting regime (OTCR) for shares listed on the Stock Exchange of Hong Kong (SEHK).

Under the HKIDR, relevant licensed corporations and registered institutions will have to assign a Broker-Client Assigned Number (BCAN) to each of their clients and tag the BCAN to their clients’ securities orders. They will also have to submit to SEHK’s data repository the identification data (ie, names and identity document information) of clients placing securities orders on SEHK or who conduct off-exchange trades reportable to SEHK.

Separately, information about OTC securities transactions in ordinary shares and real estate investment trusts listed on SEHK as well as deposits and withdrawals of physical share certificates will be reported to the SFC under the OTCR.

Read this next

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: FED, ECB, Global Inflation, May 27 ,2024

Central banks walk a tightrope: Fed stays hawkish on inflation, ECB eyes rate cuts but waits on data. This could cause currency swings and impact global economic growth.

Metaverse Gaming NFT

Despite $1 billion lawsuit, Cristiano Ronaldo launches new Binance NFTs

Cristiano Ronaldo has unveiled his fourth non-fungible token (NFT) collection in collaboration with Binance. The new collection is set to debut on the Binance NFT Marketplace this week, featuring highlights from Ronaldo’s football career.

Market News, Tech and Fundamental, Technical Analysis

GBPJPY Technical Analysis Report 27 May, 2024

GBPJPY currency pair can be expected to rise further toward the next resistance level 202.00, which is the target price for the completion of the active impulse wave 3

Digital Assets

Celebrity X accounts hacked to promote meme tokens

Several celebrity and influencer X accounts on social media platforms have been hacked, with the attackers promoting various cryptocurrencies and meme tokens.

Digital Assets

Silk Road founder to walk free if Trump re-elected

Donald J. Trump has vowed to commute the life sentence of Silk Road founder Ross Ulbricht to time served if he is re-elected as president.

Industry News

UF AWARDS Global 2024: Nominations Closing Soon!

There is still time to nominate your brand at this year’s prestigious UF AWARDS Global 2024.

Digital Assets, Uncategorized

SSV.Network to reduce hardware requirements by up to 90%

With projections indicating a milestone of 50,000 validators within the next year, the platform’s scaling roadmap represents a crucial step toward achieving this vision.

Education

Understanding DeFi: new opportunities beyond traditional banking

Dive into the dynamic field of DeFi with our comprehensive article that explores the transformative power of DeFi beyond traditional banking. Discover the broader implications of DeFi in areas like lending, borrowing, and governance.

Retail FX

Exness wins double honours at FMAS 2024 as Best Multi-asset Broker and Most Trusted Broker in Africa

Exness, one of the world’s largest brokers, celebrates a major achievement at the Finance Magnates Africa Summit (FMAS) 2024, securing the prestigious titles of Best Multi-Asset Broker and Most Trusted Broker in Africa.

<