Hong Kong Investor Identification Regime (HKIDR) and Over-The-Counter Securities Transactions Reporting Regime (OTCR)
|Investment involves risks. The prices of securities fluctuate, sometimes dramatically. The prices of a security may move up or down and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities. Investors should read the relevant Risk Disclosure Statements before making any investment decision.|
About HKIDR and OTCR
The Securities and Futures Commission (“SFC”) has introduced the Investor Identification Regime (“HKIDR”) at trading level for the securities market in Hong Kong and an Over-The-Counter Securities Transactions Reporting Regime (“OTCR”) for shares listed on the Stock Exchange of Hong Kong (SEHK). HKIDR has been launched on 20 March 2023, and OTCR will be launched on 25 September 2023.
What is the impact for client?
Under the HKIDR, Hang Seng Bank Limited ("the Bank”) will have to assign a Broker-Client Assigned Number (BCAN) to each of our securities client and tag the BCAN to our client’s securities orders. The Bank will also have to submit to SEHK’s data repository the client identification data (CID) of clients (i.e. names and identity document information) placing securities orders on SEHK or who conduct off-exchange trades reportable to SEHK. This will allow relevant regulators to quickly obtain information about investors who place orders and enhance relevant regulators’ market surveillance function.
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.
What is CID?
The Bank will disclose and transfer the following client data* as CID to relevant regulators (including but not limited to SEHK and/or SFC):
- For a corporate client:
- Full name as shown on your identity document;
- Identity document’s issuing country or jurisdiction;
- Identity document type (order priority: (1) Legal Entity Identifier^ (“LEI”) registration document; (2) Certificate of incorporation; (3) Business registration certificate; (4) other equivalent documents); and
- Identity document number on your identity document
- For a client that is trust:
- the CID of the trustee, which should be the same as that of a corporate client as set out above; or
- in the case of a trust which is an investment fund (also known as unit trust or collective investment scheme), the CID of the asset management company or the individual fund, as appropriate, which has opened a trading account with the Bank.
* Should there be any change in your client data, please provide the latest client data to the Bank in writing immediately (e.g. if you have LEI and your LEI has lapsed and/or has been renewed, you should submit your updated LEI information to the Bank immediately).
^ LEI refers to the Legal Entity Identifier which is a 20-character alpha-numeric code under the Global LEI System adopted by the Financial Stability Board to uniquely identify distinct legal entities which participate in financial transactions