In August 2021, the SFC issued consultation conclusions on proposals to introduce an investor identification regime (HKIDR) 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).
Under the HKIDR, relevant licensed corporations and registered institutions1 will have to assign a Broker-Client Assigned Number (BCAN) to each of their clients and tag the BCAN to their clients’ securities orders. They will also have to submit to SEHK’s data repository the identification data (ie, names and identity document information) of clients placing securities orders on SEHK or who conduct off-exchange trades reportable to SEHK.
Separately, information about OTC securities transactions in ordinary shares and real estate investment trusts listed on SEHK as well as deposits and withdrawals of physical share certificates will be reported to the SFC under the OTCR.
The HKIDR was launched on 20 March 2023. The OTCR was launched on 25 September 2023.
This page provides information to help the industry prepare for the implementation of the two regimes.
Information for market participants
- Consultation paper
- Consultation conclusions paper, including revisions to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission
- Information paper, technical guidance and related materials for submitting information to SEHK under the HKIDR (issued by Hong Kong Exchanges and Clearing Limited)
- The industry webinar - Video (full version) / HKIDR - Regulatory Overview/ HKIDR - Files Submission & Order Tagging/ OTCR - Regulatory Overview/ HKIDR and OTCR - Client Consent and Overview of Project TimelineThe industry webinar - Presentation Materials
- OTCR Technical Information Paper (version 1.3) (Marked-up version) [updated on 28 November 2022]
- OTCR Reporting File Template and Submission Process Flow (version 1.1) (Marked-up version) [updated on 28 November 2022]
Information for investors
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Press Release - Investor identification regime to take effect on 20 March 2023 [NEW]
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Press Release - SFC to launch investor identification regime in March 2023
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Unlocking Investor ID - Full Video / Highlights 2
- Brief introduction to the HKIDR for investors (leaflet)
- Investor Identification Regime for Securities Market in Hong Kong (IFEC blog article)
- Consultation paper (for further understanding of the regimes)
- Consultation conclusions paper, including revisions to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (for further understanding of the regimes)
Circulars
- Circular to intermediaries – roadmap for implementing the HKIDR and the OTCR
- Circular to intermediaries on obtaining client consent under the HKIDR and the OTCR
- Circular to Intermediaries - End-To-End (E2E) Test for systems relating to HKIDR
- Circular to Intermediaries - Publication of End-To-End (E2E) Test packages and File Transfer Connectivity Guide for the HKIDR
- Circular to Intermediaries - Commencement of End-To-End (E2E) Test for the HKIDR
- Circular to Intermediaries - Reminder on End-To-End (E2E) Test for the Hong Kong Investor Identification Regime (HKIDR)
- Circular to Intermediaries - Extension of End-To-End (E2E) Test for the Hong Kong Investor Identification Regime (HKIDR)
- Circular to Intermediaries - Reminder on End-To-End (E2E) Test for the Hong Kong Investor Identification Regime (HKIDR)
- Circular to Intermediaries - Investor Education on the Hong Kong Investor Identification Regime (HKIDR) and Over-the-counter Securities Transactions Reporting Regime (OTCR)
- Circular to Intermediaries - Market Rehearsals (MRs) for the Hong Kong Investor Identification Regime (HKIDR)
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Circular to Intermediaries - Launch of the Hong Kong Investor Identification Regime
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Circular to Intermediaries - Arrangements for the launch of the Hong Kong Investor Identification Regime
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Circular to intermediaries - HKEX’s annual rehearsal for trading system recovery [NEW]
Gazette notices
Questions
- Frequently Asked Questions on the HKIDR/OTCR requirements. The SFC will revise or publish further Frequently Asked Questions on the HKIDR and OTCR from time to time.
- Frequently Asked Questions on the HKIDR file submission and order tagging (issued by Hong Kong Exchanges and Clearing Limited)
- For questions on the HKIDR/OTCR, please address questions about the HKIDR to HKIDR_faq@sfc.hk and questions about the OTCR to OTCR_faq@sfc.hk.
- For questions about the technical guidance for systems and related materials for submitting information to SEHK under the HKIDR, please write to otpc@hkex.com.hk.
- For technical support on the OTCR submission channels on WINGS, please contact WINGS technical hotline at (852) 2207 9333, or email TechEnquiries@wings.sfc.hk.
Note 1 - Please refer to the consultation conclusions paper for an explanation of what constitutes “relevant licensed corporations and registered institutions” (i.e. Relevant Regulated Intermediaries) under the HKIDR and OTCR.
Note 2 - Disclaimer and Reminder
This video provides information of a general nature which is not based on a consideration of specific circumstances. Furthermore, it is not intended to cover all requirements which are applicable to you and your firm. Accordingly, it should not be regarded as a substitute for seeking detailed advice from your own professional adviser in any specific case.
The SFC is the owner of the copyright and any other rights of this video. It may not be reproduced for or distributed to third parties, or used for commercial purposes, without the SFC’s prior written consent.
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Last update: 25 Sep 2023