The Securities and Futures Commission is considering the introduction of investor identification in a move that could mark the end to the privacy of trading activities in Hong Kong.
The SFC launched a consultation on the proposals last Friday with the intention of ramping up surveillance of markets and investors.
According to a statement, the proposal includes the requirement for financial institutions to submit client names and other details to a data repository that would allow the regulator to have knowledge of the identity of an investor who places a securities order. Proposals will cover orders made on exchange, off-exchange trading as well as over-the-counter transactions of ordinary shares and listed real estate investment trusts.
Investor Freedom
The move to significantly increase market surveillance powers was already expected by some industry watchers in the run-up to the imposition of the national security law in Hong Kong.
Hedge funds were notably considering the post-legislation risk of falling in Beijing’s radars as an activist investor or short seller, though the latest proposals do not appear to cover derivatives.
«Effective, timely market surveillance is key to maintaining the integrity of the Hong Kong securities market,» said SFC chief executive officer, Ashley Alder. «The proposed investor identification measures will make our market supervision more robust and promote the investor confidence which is essential for Hong Kong to thrive as a premier international financial center.»
