Securities & Futures Commission of Hong Kong

Client Securities Rules

Q1:

Is an intermediary required to obtain client’s standing authority for transferring/sending client securities kept in the intermediary’s vault (held in script form registered in the name of an associated entity) to: (a) HKSCC for trading/settlement purposes; or (b) the Share Registrar for corporate actions taken (like exchanging old share certificates for new certificates because of merger, acquisition, stock split/consolidation etc) on behalf of a client; and vice versa?

A:

No, we take the view that client’s standing authority should not be necessary where such acts are merely administrative, do not involve any change in beneficial ownership and the relevant client securities remain properly deposited or registered in accordance with section 5(1) of the CSR throughout the process.

Section reference: 6

3.4736 s