Securities regulator allows electronic signatures for cross-border account opening
Experts welcome the news – the latest step in what could soon become a paperless financial market
Hong Kong’s securities regulator has given its blessing to the use of electronic or digital signatures when securities firms open accounts on behalf of clients, which is expected to make it considerably more convenient for customers not based in the city to open an account here.
An electronic signature can be used to authenticate electronic documents, which is very similar to a handwritten signature which authenticates printed documents.
The Securities and Futures Commission said in an advisory circular on its website that signatures verified by authorities outside of Hong Kong and recognised by the Hong Kong government would be allowed.
Brokers dealing with clients online can now allow their customers to use the recognised signing certificates to create electronic signatures for executing client agreements, the SFC said.
The regulator underlined that securities houses should deal only with regulated financial institutions, certified professional accountants or notary publics to witness the signing of any client agreements and the signing of identity documents.
The SFC has never made it clear whether it was allowed. This official approval now makes it easier for local firms developing overseas clients, and the mainland is the biggest market
“The SFC is minded to closely review and follow up on any potential non-compliance in this area and take appropriate regulatory action,” it said.