The Securities and Futures Commission (SFC) reminds the investing public that the Hong Kong investor identification regime (HKIDR) (Note 1) will commence on 20 March 2023. Investors who have not yet responded to their intermediaries’ requests for consent to transferring their client identification information should do so promptly.
Under the HKIDR and Hong Kong’s data privacy laws, including the Personal Data (Privacy) Ordinance, intermediaries need to obtain individual clients’ express consent to submitting their identification information to the SFC and the Stock Exchange of Hong Kong Limited (SEHK). The information is encrypted in the data repository and accessible only to authorised personnel of the SFC and SEHK. Intermediaries have generally requested clients to provide this consent and update their identification information.
After the launch of HKIDR, individual investors who have not provided this consent will only be able to sell their securities holdings on SEHK but not buy additional securities.
“The launch of the investor identification regime is in line with international practices,” said Ms Julia Leung, the SFC’s Chief Executive Officer. “Regulators will have real-time information about investor identity for securities orders. This will no doubt strengthen our market surveillance capability, uphold market integrity and bolster investor confidence.”