Hong Kong Investor Identification Regime

In August 2021, the Securities and Futures Commission (SFC) issued consultation conclusions on proposals to introduce an investor identification regime 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). For detailed information, please visit: SFC website

 

HKIDR – FAQ

1. Q: What is “HKIDR”?

A: Hong Kong Investor Identification Regime and Over-the-counter Securities Transaction Reporting Regime, collectively known as the Investor Identification Regime (HKIDR), are a new set of surveillance mechanisms introduced by the SFC at trading level for the securities market of Hong Kong and an over-the-counter securities transaction reporting regime for shares listed on the SEHK.

 

2. Q: How does HKIDR work?

A: Under HKIDR, we will assign a Broker-Client Assigned Number (BCAN) to each of our customer account.  BCAN and clients’ identity document information will be submitted to a secured data repository of Hong Kong Exchanges and Clearing Limited (HKEX). Separately, reporting including the clients’ identity information will also be made to a secured data repository at the SFC. Every stock transaction or order will then be tagged with a BCAN to identify the investors who place the order. 

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

 

3. Q: When will HKIDR be implemented?

A: Hong Kong Investor Identification Regime and OTCR will be implemented tentatively in the second half of 2022 and the first half of 2023 respectively, subject to the SFC and the SEHK’s further announcement.

 

4. Q: Why do I need to sign HKIDR consent?

A: To comply with requirements under Personal Data (Privacy) Ordinance and the SFC’s requirements, we must obtain your signed consent form before submitting your identity document information to the HKEX and the SFC. If the relevant consents in respect of HKIDR-are not included in the consent agreements you’ve previously signed and provided, a new consent will be required.

 

5. Q: How should I sign HKIDR consent?

A: We accept both online consent and physical consent letter. To reply online, you may log in our web-based platform iTrade or our Xet mobile device APP, General Version APP. A consent-reply window will pop-up once you log in.  If you choose to reply by completing the physical consent letter (click here to download), please send the signed form to your account manager.

 

6. Q: What if I reject or ignore the HKIDR consent?

After the implementation of Hong Kong Investor Identification Regime, clients who has rejected or ignored the HKIDR consent will not be able to buy new shares, and are  only allowed to sell the existing portfolios in Hong Kong securities market.

 

7. Q: I am an existing customer but I have  rejected/ignored the HKIDR consent. When will I be able to buy new shares in Hong Kong securities market after signing the consent?

A: We may need at least one working day to process your reply. Please reserve sufficient time or reply in advance.

 

8. Q: Will trading of US Stocks or other markets be affected?

A: HKIDR is applicable to Hong Kong securities market only. The securities markets other than  the Hong Kong securities market will not be affected.

 

9. Q: Is my personal data well protected?

A: All of your identity document information will be kept in the secured data repositories of HKEX and the SFC. Only authorized HKEX and the SFC personnel could access the data on a need-to-know basis.

 

10. Q: Should corporate clients sign HKIDR consent?

A: Corporate clients are not required to sign the HKIDR consent.

 

11. Q: Do I need to update my personal data for HKIDR?

A The priorities of the types of personal identification documents to be provided under HKIDR are the Hong Kong Identity Card, the national identification document and the passport. If you have obtained a new identification document with a higher priority or if your identification document has been changed or expires, you should promptly update your identity document information with us.