SFC to Launch Investor Identification and OTC Securities Transaction Reporting Regimes

Hong Kong’s Securities and Futures Commission (SFC) has published consultation conclusions on proposals to implement an investor identification regime, and introduce an over-the-counter securities transactions reporting regime for shares listed on the Stock Exchange of Hong Kong.

According to the release, the investor identification regime is expected to be launched in the second half of 2022 and the OTC securities transactions reporting regime in the first half of 2023, subject to the completion of system testing and market rehearsals.

Under the investor identification regime, licensed corporations and registered institutions will submit to The Stock Exchange of Hong Kong Limited (SEHK) the names and identity document information of clients placing securities orders on SEHK.

Under the OTC securities transaction reporting regime, licensed corporations and registered institutions will report information on OTC securities transactions in ordinary shares and real estate investment trusts listed on SEHK to the SFC.

“The new regimes will enable effective and timely surveillance of the Hong Kong securities market. They will help reinforce market integrity and promote investor confidence, which are vital to Hong Kong’s status as a premier international financial centre,” said Mr Rico Leung, the SFC’s Executive Director of Supervision of Markets.

Earlier this month, the SFC has reprimanded and fined UBS AG and UBS Securities Asia Limited​ $9.8 million and $1.75 million respectively over various regulatory breaches.