Sfc Client Agreement Faq

In practice, the new IMA clause becomes redundant if the intermediary has full discretion in the management of the client portfolio, in the absence of a recommendation or invitation to a financial product. The mandate given under the IMA should be appropriate for the client and the investments made under this mandate must be consistent with the mandate. However, if the intermediary makes investment decisions on behalf of the client in the execution of the mandate without referring to the client, no recommendations or requests are made for these portfolio transactions, so the aptitude requirement is not created. However, if the intermediary consults with his client before the investment, there may be a recommendation or a request, in which case the aptitude review of these investments must be carried out. The FAQs specify that all licensed or registered intermediaries for regulated Type 9 (Asset Management) activities and all intermediaries that provide discretionary management services to their clients should include the qualification clause in their agreements with their clients, unless the intermediary is eligible for an exemption. Developing, reviewing and amending client agreements to ensure compliance with the code; and training in the requirements of customer agreement, adequacy and the revised professional investor system. FAQs provide that, where these types of funds are clients, they must be covered by paragraphs (a) to (i) the definition of the professional investor in Section 1 of Schedule 1 of Schedule 1 to the SFO, so that an intermediary is able to use its discretion and not include the adequacy clause in the client agreement with these clients. Unlike cash accounts, in margin trading, place only a fraction of the total cost. You borrow money from a broker for your stock transactions with your shares as collateral. Keep in mind that if you leverage marginal accounts, your market gains and losses are increased. Marginal accounts are riskier. Therefore, do not open a margin account if you do not intend to use such an institution. Otherwise, if you are trading with Margin, make sure there are enough guarantees to support the business activity on the account.

The amount of collateral required (usually by equities and liquidity) varies depending on market conditions. Note that one of the characteristics of securities margin financing in Hong Kong is that marginala clients` shares are generally „bundled” and credited by brokerage to a bank in order to obtain their own line of credit. Therefore, when you open a margina account, you are usually asked to grant written permission to do so. Depending on the terms of the authorization, the pool agreement can register all the shares of the marginal accounts, whether or not you can use the margin credit in your account. If the brokerage is wrapped or liquidated, you may also be in danger.

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