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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Fines:

• Nomura, UBS and Unicredit Fined $451 Million for Rigging European Bond Prices
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• United States SEC Fines Under Armour $9 Million for Misleading Investors on Revenue Growth in 2015
• Alibaba Fined $2.78 Billion by China State Regulator for Anti-Monopoly Practices

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• Malaysia Sues JP Morgan, Deutsche and Coutts for $2.93 Billion, Receives $452 Million from United States
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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