SFC to launch investor identification regime in March 2023
After issuing the Consultation Conclusions Paper in August 2021 on proposals to implement the HKIDR, the SFC has been closely monitoring market readiness by conducting three rounds of survey (Note 2). The survey results indicate that significant progress has been made to prepare for the implementation, but some intermediaries may need more time to obtain from individual clients the necessary consent to the collection, storage, processing and use of personal data under the HKIDR, and update client identification information. Given the above, the SFC has decided to launch the HKIDR on 20 March 2023.
Client consent is needed in order for intermediaries to comply with the SFC’s requirements and relevant data privacy laws, including the Personal Data (Privacy) Ordinance. The SFC would like to remind investors to respond to the request from their intermediaries as soon as possible. After the implementation of the HKIDR, if investors do not provide the required consent, they will only be allowed to sell existing securities holdings but not to buy securities on the Stock Exchange of Hong Kong Limited (SEHK). For details of the HKIDR regime, investors may refer to the “Information for investors” section of the SFC’s dedicated webpage.
“The launch of the investor identification regime will be a significant milestone in Hong Kong’s securities market,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “By enabling effective and timely surveillance, the regime will reinforce market integrity and promote investor confidence, which are vital pillars for Hong Kong as a world-class international financial centre.”
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Notes:
- 1.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 (or off-exchange trades reportable to it), and submit to SEHK’s data repository the names and identity document information of their clients.
- 2.The three rounds of HKIDR readiness survey were conducted in January, June and September 2022 respectively.
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