SFC relaxes rules for online account opening

The Securities and Futures Commission (SFC) has amended its code of conduct with immediate effect to allow investors to open online trading accounts without a face-to-face meeting.

Online brokers had complained the face-to-face requirement was unfavourable for the development of the trading service.

Brokers can now verify the identity of a new client by obtaining a copy of his or her identity card and a cheque from a Hong Kong licensed bank issued by the client.

SFC executive director Alexa Lam said the move showed the watchdog's commitment towards market development and deregulation. 'The new procedure is designed to be practical while providing comprehensive verification steps that will greatly facilitate online trading business.'