Hong Kong SFC to Require Investor Identification for Securities Trading in 2022, Reporting of OTC Transactions in 2023

Hong Kong SFC to Require Investor Identification for Securities Trading in 2022, Reporting of OTC Transactions in 2023

12th August 2021 | Hong Kong

The Hong Kong Securities and Futures Commission (SFC) will require investor identification for the securities market in Hong Kong and reporting of over-the-counter (OTC) securities transactions for Ordinary Shares and Real Estate Investment Trusts (REITs).  For investor identification which is target to start in 2nd half of 2022, the names and identity of clients placing securities orders on the Stock Exchange of Hong Kong Limited (SEHK) has to be submitted to the stock exchange (SEHK) by Hong Kong licensed corporations and registered institutions.  For reporting of over-the-counter (OTC) securities transactions which is target to start in 1st half of 2023, information on OTC securities transactions in Ordinary Shares and Real Estate Investment Trusts (REITs) listed on the stock exchange (SEHK) will be reported to the the Hong Kong Securities and Futures Commission (SFC).  View: SFC Consultant Conclusion

“ Hong Kong SFC to Require Investor Identification for Securities Trading in 2022, Reporting of OTC Transactions in 2023 “

Rico Leung, Hong Kong SFC Executive Director of Supervision of Markets:

“The new regimes will enable effective and timely surveillance of the Hong Kong securities market.  They will help reinforce market integrity and promote investor confidence, which are vital to Hong Kong’s status as a premier international financial centre.”

The consultation paper originally proposed implementing the investor identification regime in the first quarter of 2022 and the OTC securities transactions reporting regime in the third quarter of 2022.  To provide more time for the industry to prepare, the implementation timelines were extended after taking consultation feedback into account.

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About Securities and Futures Commission (HK)

The Securities and Futures Commission (SFC) is an independent statutory body set up in 1989 to regulate Hong Kong’s securities and futures markets.

We derive our investigative, remedial and disciplinary powers from the Securities and Futures Ordinance (SFO) and subsidiary legislation. Operationally independent of the Government of the Hong Kong Special Administrative Region, we are funded mainly by transaction levies and licensing fees.

Visit: Hong Kong Securities and Futures Commission