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Hong Kong market watchdog SFC to launch investor identification scheme in March
- The regime, which requires investors to have their personal identification details registered with HKEX, will start on March 20
- Investors who do not provide the required consent will be prohibited from buying securities, the SFC said
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Hong Kong’s securities regulator will launch a new investor identification system in March next year, tightening oversight on trading activities in the market to reduce misconduct.
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The Securities and Futures Commission (SFC) said the regime, which for the first time requires investors to have their personal identification details registered with the exchange operator, will start on March 20, according to a statement on its website on Monday.
The roll-out was originally scheduled for the second half of this year and was postponed because some intermediaries needed extra time to obtain consent from individual clients to collect, store, process and use personal data and to update client identification information, the SFC said.
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“The launch of the investor identification regime will be a significant milestone in Hong Kong’s securities market,” Ashley Alder, the SFC’s CEO, said in a statement. “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.”
Under the investor identification system, brokerages and financial institutions will need to submit clients’ names and identity document information to Hong Kong Exchanges and Clearing (HKEX), the bourse operator, when placing orders to buy or sell shares. Currently, Hong Kong’s trading systems only show brokers’ names, and the identities of clients are provided only if requested by the SFC.
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