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Fintech Market Overview

This article does not constitute legal advice.

Digital onboarding in Hong Kong

Fintech Software

Pursuant to the amended Paragraph 5.1 of the SFC Code of Conduct, acceptable account opening methods are now set out on the SFC's website instead of in the SFC Code of Conduct. The SFC also issued the Circular to Intermediaries: Remote onboarding of Overseas Individual Clients on 28 June 2019, along with an FAQ that addresses various issues of digital onboarding. In addition to the face-to-face approach, the SFC now permits licensed intermediaries to adopt other account opening procedures, provided the procedures can satisfactorily ensure the identity of the client. There are several methods that are acceptable to the SFC, including:

  1. certification by qualified person: the client agreement and the identity documents of the customer are certified by another licensed person, an affiliate, a justice of the peace or a professional person;
  2. using the certification services: the licensed intermediary accepts electronic signature certificates to replace actual identity documents;
  3. mail approach: the customer posts a copy of the identity document and the client agreement to the intermediary together with a physical cheque bearing the same signature as the one on the client agreement;
  4. online onboarding with Hong Kong-designated bank account: the customer electronically signs the client agreement and provides a copy of the identity document, and all future deposits and withdrawals from the client's trading account must be with a bank account in Hong Kong in the customer's name; and
  5. remote onboarding of overseas individual clients: technology adhering to international standards and best practice, such as ISO/IEC 19795 (biometric performance testing and reporting) and ISO/IEC 30107 (biometric presentation attack detection) would be adopted in the process of client identification together with the requirement that all deposits into and withdrawals from the client's trading account are made with a bank account in the customer's name opened with a designated bank from an eligible jurisdiction. 1

For last point, there are currently 16 eligible jurisdictions, namely Australia, Austria, Belgium, Canada, Ireland, Israel, Italy, Malaysia, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.1

Artificial intelligence in financial products

Fintech in Hong Kong

Fintech in other countries

Notes
  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/hong-kong
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