What is Hong Kong Investor Identification Regime (HKIDR)?
Securities and Futures Commission (“SFC”) has announced the implementation of an investor identification regime for the securities market in Hong Kong (HKIDR) in the second half of 2022. HKIDR will be implemented at trading level for the securities listed or traded on the trading system used by the Stock Exchange of Hong Kong (“SEHK”).
Under HKIDR, the Bank has to:
- collect Client Identification Data (“CID”) from clients;
- assign to each of the clients a unique Broker-to-Client Assigned Number (“BCAN”); and
- submit client’s CID along with the BCAN to the SEHK and/or SFC.
You are required to provide express consent to continue to enjoy related Hong Kong Securities Trading services.
What is Broker-to-Client Assigned Number (BCAN)?
Under HKIDR, the Bank has to assign each of the clients a BCAN for their account with the Bank. The Bank will only process a BCAN registration after receiving the consent from the client.
What is Client Identification Data (“CID”)? What kind of personal data is required under the HKIDR?
CID refers to the following information in relation to a client to whom a BCAN is assigned.
Personal data required under HKIDR
|
Individual Client |
Corporate Client |
|
1. Full name as shown on the identity document |
1. Full name as shown on the identity document |
|
2. Identity document’s issuing country or jurisdiction |
2. Identity document’s issuing country or jurisdiction |
|
3. Identity document type (order of priority: (1) HKID card*; (2) national identification document; (3) passport) |
3. Identity document type (order of priority: (1) Legal Entity Identifier registration document; (2) certificate of incorporation; (3) business registration certificate; (4) other equivalent documents) |
|
4. Identity document number on the identity document. |
4. Identity document number on the identity document. |
*Mandatory CID for Hong Kong residents
What is Over-The-Counter Securities Transactions Reporting Regime (“OTCR”)?
The SFC has announced the implementation of the Over-The-Counter Securities Transactions Reporting Regime (“OTCR”).
OTCR transactions refers to:
- transfers of shares made in connection with an OTC securities transaction (i.e. a transaction not recorded by SEHK) in respect of which stamp duty is chargeable in Hong Kong, except where the transaction is granted stamp duty relief (whether in full or in part) from the Inland Revenue Department, or the transfer of shares is made in accordance with the terms of a structured product or a derivative, or for the conversion of depository receipt into shares or vice versa
- deposits and withdrawals of physical share certificates
Under the OTCR, the Bank has to: (1) report the CID of clients, including the transferee and/or transferor of shares, to the SFC when the Bank, whether as principal or agent for clients, makes the relevant transfer; or (2) report the CID of clients to the SFC when the Bank, whether as principal or agent for clients, deposits or withdraws physical share certificates.
When will the Hong Kong Investor Identification Regime (“HKIDR”) launch?
As announced by the SFC, HKIDR will be implemented tentatively in Q4 of 2022.
When will the Over-The-Counter Securities Transactions Reporting Regime (“OTCR”) launch?
As announced by the SFC, OTCR will be implemented tentatively in the first half of 2023. The final implementation date is subject to SFC further announcement.
Why do I need to provide consent after the implementation of Hong Kong Investor Identification Regime (“HKIDR”) ?
You are required to provide express consent to continue to enjoy related Hong Kong Securities Trading services after HKIDR comes into effect tentatively in the second half of 2022.
Is the HKIDR applicable to Securities Trading of all markets offered by the Bank?
The HKIDR is applicable to the Hong Kong market only.
What will happen if I do not provide consent?
Failure to provide consent will mean that the Bank will not or will no longer be able to carry out your buy orders of securities after the implementation of HKIDR and OTCR.
Transfer-in of shares and deposit of physical share certificates to account(s) with us will not be accepted either, and you would only be able to sell or transfer out your existing holdings or withdraw physical share certificates, if any.
Are the HKIDR and OTCR applicable to me?
The HKIDR and OTCR are applicable to any client who would like to carry out related Hong Kong Securities Trading services (which include purchase of securities, transfer-in of shares and deposit of physical share certificates to account(s)).
How to provide my consent?
Once you logged on the platform, go to:
- Menu > Settings > Trading Products > Take/Retake Test
You can give your consent after you click Take/Retake Test.
I have one sole account and one joint account with Saxo. Do I need to provide separate consents for each account?
Your consent will be applicable to all of your account(s) with the Bank and any subsequent account(s) to be opened. However, for joint accounts, all account holders have to provide their consents.
I have a joint account, are all account holders required to provide their consents?
All account holders have to provide their consents for the BCAN registration.