Securities & Futures Commission of Hong Kong

Settlement bank crisis - the failed bank is the settlement bank of a broker or provides loans to the broker


I deposited money for settlement of a trade into a broker's account at the failed bank just before it collapsed (T+1). Is there a problem?


This should be considered by the administrator of the failed bank based on the actual situation.


What settlement alternatives are available? For instance, should I take cheques directly to my broker?


Yes, you may take cheques directly to the broker for settlement. You are advised to clarify other settlement alternatives with your broker directly.


I have a cheque drawn by my broker on the failed bank. Can I still bank in the cheque?


You should ask the broker to make alternative arrangements.

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