J. FAQs specific to OTCR
Are bonds and listed debt instruments within scope of the OTCR?
Does a bought and sold note transaction (not recorded on SEHK) need to be reported under the OTCR?
Q3 : Is a transfer of shares between two RRIs for the same client, or a transfer of shares between two accounts held by the same client in an RRI, reportable under the OTCR?
Q4 : If a client of an RRI deposits a physical certificate for the purposes of selling via SEHK which is reportable under the HKIDR, or a client of an RRI withdraws a physical certificate after buying on SEHK which has been reported under the HKIDR, are the deposit and withdrawal of the physical certificate concerned reportable by the RRI under the OTCR?
Q5 : Is a deposit or withdrawal of a physical certificate, which does not involve any change of beneficial ownership, reportable under the OTCR?
Q6 : An LC or RI provides securities brokerage services for a client (“Client A”) in respect of orders placed through an account opened and maintained for Client A. On the other hand, the same LC or RI acts as a custodian for another client (“Client B”), i.e. no securities brokerage services are provided for Client B. Does that LC or RI need to report relevant activities conducted for Client A or Client B under the OTCR?
Client B – no, as the LC or RI does not act as an RRI for Client B.
Last update: 26 Nov 2021