FAQ

Hong Kong Investor Identification Regime (“HKIDR”) and Over-the-counter Securities Transactions Reporting Regime (“OTCR”)

What is 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 Limited (“SEHK”).

Under the HKIDR, Everbright Securities International* is required to:-

  • collect Client Identification Data (“CID”) from clients;
  • assign to each of the clients a unique Broker-to-Client Assigned Number (“BCAN”);
  • submit client’s CID along with the BCAN to the SEHK and/or SFC; and
  • make sure client(s) has/have provided express consent in order to continue to enjoy relevant Hong Kong Securities Trading services offered by Everbright Securities International.

  • *Our securities trading services are provided by Everbright Securities Investment Services (HK) Limited (“EBSISHK”), Everbright Securities Digital Finance (HK) Limited (“EBSDFHK”) and China Everbright Securities (HK) Limited (“CESHK”). Both EBSISHK and EBSDFHK are wholly-owned subsidiaries of China Everbright Securities International Company Limited (“CEBSI”). CESHK is a wholly-owned subsidiary of Everbright Securities International (HK) Limited, an associated company of CEBSI. All these companies are collectively referred to as “Everbright Securities International” or “EBSI”.

    Last Update: 2022-06-08

What is BCAN?

Under the HKIDR, EBSI* has to assign each of the clients a BCAN for his/her account with EBSI. EBSI will only process relevant BCAN registration after receiving the consent from the client.

*Our securities trading services are provided by Everbright Securities Investment Services (HK) Limited (“EBSISHK”), Everbright Securities Digital Finance (HK) Limited (“EBSDFHK”) and China Everbright Securities (HK) Limited (“CESHK”). Both EBSISHK and EBSDFHK are wholly-owned subsidiaries of China Everbright Securities International Company Limited (“CEBSI”). CESHK is a wholly-owned subsidiary of Everbright Securities International (HK) Limited, an associated company of CEBSI. All these companies are collectively referred to as “Everbright Securities International” or “EBSI”.

Last Update: 2022-06-08

What is Over-The-Counter Securities Transactions Reporting Regime (“OTCR”)?

The SFC has announced the implementation of the OTCR in the first half of 2023.
OTCR relevant transactions refer to, among other things:

  • 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
  • deposits and withdrawals of physical share certificates.

  • Under the OTCR, EBSI has to: (1) report the CID of clients, including the transferee and/or transferor of shares, to the SFC when EBSI, whether as principal or agent, makes the relevant transfer; or (2) report the CID of clients to the SFC when EBSI, whether as principal or agent, deposits or withdraws physical share certificates.

    Last Update: 2022-06-08

When will HKIDR be launched?

As announced by the SFC, HKIDR is expected to be implemented in the second half of 2022. The final implementation date is subject to further announcement by the SFC.

Last Update: 2022-06-08

When will the Over-The-Counter Securities Transactions Reporting Regime (“OTCR”) launch?

As announced by the SFC, OTCR is expected to be implemented in the first half of 2023. The final implementation date is subject to further announcement by the SFC.

Last Update: 2022-06-08

What kinds of clients need to provide consent under HKIDR and OTCR? Why do clients need to provide consent?

Only individual clients who have individual and/or joint account maintained under EBSI is required to provide consent in order to enjoy relevant Hong Kong Securities Trading services after the HKIDR and OTCR come into effect.

Last Update: 2022-06-08

Are the HKIDR and OTCR applicable to Securities Trading of all markets offered by Everbright Securities International?

The HKIDR and OTCR are applicable to the Hong Kong securities market only.

Last Update: 2022-06-08

What will happen if I do not provide consent or disagree with the consent?

Failure to provide consent, or if you disagree with the consent, will mean that EBSI will not, or will no longer, be able to carry out your buy orders of securities after the implementation of the 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.

Last Update: 2022-06-08

Are the HKIDR and OTCR applicable to me?

The HKIDR and OTCR are applicable to any client who would like to carry out relevant Hong Kong Securities Trading services (which include purchase of securities, transfer-in of shares and deposit of physical share certificates to account(s)).

Last Update: 2022-06-08

What kind of client needs to submit my “Client Consent Form – Hong Kong Investor Identification Regime and Over-the-counter Securities Transactions Reporting Regime” (“Client Consent”)?

Client Consent is only applicable to clients who maintain individual and/or joint account with Everbright Securities International.

Last Update: 2022-06-08

I have more than one trading account in Everbright Securities International. Do I need to provide separate Client Consent for each account?

Client Consent is obtained and maintained at client level. Clients who maintain accounts under Everbright Securities Investment Services (HK) Limited (“EBSISHK”), Everbright Securities Digital Finance (HK) Limited (“EBSDFHK”) and China Everbright Securities (HK) Limited (“CESHK”) are only required to provide one Client Consent to us.

Last Update: 2022-06-08

Are all account holders of my joint account required to provide their Client Consent?

Yes, all account holders of joint account are required to provide their consent and sign on the same Client Consent.

Last Update: 2022-06-08

Can I withdraw my “Client Consent” after submission?

Client may withdraw his/her Client Consent previously submitted to us anytime. Please be reminded that withdrawal of Client Consent may mean that Everbright Securities International will not, or will no longer be able to, as the case may be, carry out your trading instructions or provide you with securities related services (other than to sell, transfer out or withdraw your existing holdings of securities, if any).

Last Update: 2022-06-08

I have already submitted my “Client Consent” for Shanghai-Hong Kong Stock Connect / Shenzhen-Hong Kong Stock Connect. Do I need to submit another separate “Client Consent” again?

Client is required to provide separate client consent for the HKIDR and OTCR even if previous client consent is submitted for Shanghai-Hong Kong Stock Connect / Shenzhen-Hong Kong Stock Connect.

Last Update: 2022-06-08

Is there acknowledgement to my “Client Consent” upon submission?

No acknowledgement will be sent to client upon submission. Client is strongly advised to keep a record of the Client Consent he/she has submitted to us.

Last Update: 2022-06-08

What are the personal data to be submitted by Everbright Securities International to the SEHK and/or the SFC?

EBSI may collect, store, process, use, disclose and transfer personal data relating to clients (including CID and BCAN(s) together with any requisite data relating to your transaction and/or account as required by the Regulatory Rules (as defined below)) as required for EBSI to provide services to clients in relation to securities listed or traded on SEHK or traded on any over-the-counter market, network or facility and for complying with the rules and requirements of SEHK and the SFC (“Regulatory Rules”) in effect from time to time.

Last Update: 2022-06-08

I have already submitted the client consent with another broker. Do I need to submit Client Consent to Everbright Securities International again?

Each broker is required to obtain independent Client Consent from its clients.

Last Update: 2022-06-08

Is my “Broker-Client Assigned Number” (“BCAN”)" in Everbright Securities International same as that with other brokers?

Each broker, including Everbright Securities International, is required to assign to each of the clients a unique BCAN.

Last Update: 2022-06-08

If I do not submit "Client Consent", can I still trade via my account?

Failure to provide Everbright Securities International with your personal data or Client Consent may mean that Everbright Securities International will not, or will no longer be able to, as the case may be, carry out your trading instructions or provide you with securities related services (other than to sell, transfer out or withdraw your existing holdings of securities, if any).

Last Update: 2022-06-08

How to submit the signed Client Consent?

For account holder of individual and or joint trading account(s), you may sign and return Client Consent to your Wealth Manager or directly return the signed Client Consent to us by post to the following address:

28/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong.

In addition, if you are the account holder of individual trading account(s), you may choose to provide your Client Consent to us through one of the below channels:

  • Online Trade Portal
  • eMO! mobile app
  • Online submission via https://www.ebshkfg.com/hkidr/en/
  • Last Update: 2022-06-08

Can I submit the "Client Consent" after the deadline?

There is no actual deadline for submission. However, once the HKIDR is officially launched by SEHK and the SFC, Everbright Securities International will not, or will no longer be able to, as the case may be, carry out your trading instructions or provide you with securities related services (other than to sell, transfer out or withdraw your existing holdings of securities, if any) if no Client Consent is obtained from client. Therefore, Client can submit Client Consent anytime they wish.

Last Update: 2022-06-08

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