Investor Identification and OTC Securities Transactions Reporting

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 is expected to be launched in the later part of Q4 2022 at the earliest and the OTCR in the later part of Q2 2023 at the earliest, subject to the market’s completion of system testing and rehearsals.

This page provides information to help the industry prepare for the implementation of the two regimes.

Information for market participants

Information for investors

Circulars

Questions 

Survey 

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: 23 Sep 2022

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