The securities regulator in Hong Kong issued guidance for intermediaries who use instant messaging apps to take orders from customers. The use of such communications channels is increasing rapidly.
Hong Kong’s Securities and Futures Commission (SFC) latest circular tackles the growing use of instant messaging as a conduit for client orders. SFC outlined the need for key controls and procedures intermediaries are expected to put in place when using instant messaging apps for client orders.
«Brokers should put in place adequate measures to ensure the security and reliability of instant messaging applications used for receiving client orders,» said Julia Leung, the SFC's deputy CEO, according to the release issued on Friday.
SFC: Ready to Act
Intermediaries will be required to keep such records for at least two years. The regulator also warned in its statement that it is ready to take action against intermediaries who fail to adequately protect customers.
Among other procedures intermediaries will be required to monitor, audit and confirm customers’ identities, and have measures in place to prevent unauthorized account access and cyber attacks.
