What is the Hong Kong Investor Identification Regime (HKIDR) and the Over-the-Counter Securities Transaction Reporting Regime (OTCR)?
To enhance the market surveillance capabilities and maintain market integrity, the Securities and Futures Commission (SFC) has introduced the Hong Kong Investor Identification Regime (HKIDR) at trading level for Hong Kong securities market and the Over-The-Counter Securities Transaction Reporting Regime (OTCR) for shares listed on The Stock Exchange of Hong Kong (SEHK). HKIDR and OTCR have been launched on 20 March 2023 and 25 September 2023 respectively.
Under the HKIDR, BOOM have to:
collect Client Identification Data (“CID”) from clients
assign a unique Broker-to-Client Assigned Number (BCAN) to each of our clients and tag the BCAN to clients' securities orders
submit clients' CID along with the BCAN to the SEHK’s data repository
Under the OTCR, BOOM have to report to the SFC 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.
What is Client Identification Data (CID)?
CID refers to certain types of client information in relation to a client to whom a BCAN is assigned.
For individual client, CID includes English and/or Chinese name(s) as shown on the Identity Document, ID issue place, ID type and ID number.
For corporate client, CID includes name of the legal entity, place of registration, type and number of registration document.
BOOM will disclose and transfer the client data in accordance with the waterfall requirement as set out below (i.e. where the client does not hold such document first mentioned in the list, client should provide the next mentioned document and so on) as CID to relevant regulators:
Individual*: (1) HKID Card; (2) National Identification Document; (3) Passport
Corporate: (1) Legal Entity Identifier (LEI) registration document; (2) Certificate of Incorporation; (3) Certificate of Business Registration; (4) other equivalent identity document
* Both "Exit-Entry Permit for Travelling to and from Hong Kong and Macao" and "Permit for Proceeding to Hong Kong and Macao" are not accepted documents for CID.