new hires ii (securities services) paul chong - jun 08

7/28/2019 New Hires II (Securities Services) Paul Chong - Jun 08

1/28

Management Trainee

Program(Aug 26, 2008)

Shares Trading OperationsPresented by Paul S Y Chong


2/28

Overview Structure of Loans, Securities & Insurance

Processing

Securities Account Opening Documents

Physical stock deposit or withdrawal

Settlement Instruction - Share Transfer Common Charges

Q & A


3/28

Loans, Securities & Insurance Processing

Mutual Fund/Bonds/ELI/Structured Note Share Trading Insurance Processing Loan Processing

Paul Chong

Team Head

Loans, Securities &Insurance Processing

Paul Chong

V.P.

CTSD


4/28

Account Opening Documents General Terms & Conditions for Securities

Trading , Margin Trading &/ Trading in Mutual

Funds (Form 1042) Investment Account Opening Form For Individual

Clients (Form 1043)

Investment Account Opening Form For CorporateClients (Form 1043A)

Client Investment Profile Questionnaire(Form 1045)


5/28

Account Opening

Documents

An Acceptance Letter of Opening /Operating Securities Account (Form 18) -

Certified Copy Of Board ResolutionsAuthorizing A Company To Obtain SecuritiesTrading Services (730A)


6/28

Points to note - Account Opening

Form (Form 1043)

Account must not be opened for customer

having an US address Mark the settlement account clearly on

Section 2 (For cash trading account)

Settlement account should be a currentaccount without credit facility attachedAND same title of the share account


7/28


Form (Form 1043)

Apply the Electronic Banking Services for

Margin Trading Account Customers as nocheck book will be issued to them - Form712D E-Banking Services Main. Form

An Operations Officer (not necessary be aSDS) is to review the correctness andcompleteness of the Form and signed intheReviewed By Column


8/28


Form (Form 1043)

Banking Center Manager should sign on the

Approved By column after reviewing theform. If absent, his deputy ( also be a SDS)should sign

Responsible SDS should sign on behalf of

the Bank on this form (Agreement) in

opening the account with customer


9/28


Form (Form 1043)

Risk Disclosure Statement (Clause 24 T&C)

Banking Center Representative ( Registered inSFC) is required to explain to customer

regarding the risk of securities trading , margin

trading etc

Banking Center Representative (Registered in

SFC) is required to sign on the Declaration by

Staff after he explains the statement to

customer


10/28

Account holder should be the ultimate

beneficial owner. If not, refer ComplianceOfficer before account opening

If account holder is an employee of any

Registered Person, obtain approval from hisemployer and provide duplicate statement

(Form 18)

Other Information

Form 1043


11/28

Form 18


12/28

Certified Copy Of Board

ResolutionForm 730 A Sign and type the full name in paragraph 3

for the authorized persons to sign the

Account Opening Form (1043A)

Stipulate number of authorized persons

required to act in paragraph 4

Sign and type the full name in paragraph 5

for the authorized officers to sign for the

operations of the Securities Account


13/28

Certified Copy Of Board Resolution

Form 730 A

Stipulate number of authorized officers

required to act in paragraph 6

Sign by the Chairman of the Meeting


14/28

Physical Shares Deposit and

withdrawal

Securities Lodgment Form (Form 884)

Standard form of Transfer

Securities Release Order


15/28

Share Lodgment

Customer must either sign on the back of

the shares or sign a Transfer Form in

order to make the shares transferable

Acknowledge the shares by provide a

copy of completed Form 884 to customer

Share lodgment takes 3 weeks, customer

is not allowed to sell the shares before

completing the lodgment process


16/28

Form 884


17/28


18/28


19/28


20/28

Withdrawal of shares

Shares withdrawn are in name of HKSCC

Nominees Limited. Customers are

advised to re-register the shares Hand Form 504B duly signed by BM to

SIP for withdrawal case where customer

requests the shares to be collected atBanking Center.


21/28

Form 504B


22/28

Form 1018


23/28

Common Charges - Trading Bank charges :

Brokerage CommissionTier Pricing

Lodgment fee - $5 per lot , min $30 andmax $500. ( Purchase only)

Out-of-pocket charges :Levy - 0.007% on gross trade value ( 0.005%

Transaction Levy, 0002% InvestorCompensation Levy

Stamp duty - 0.1% round up to dollar


24/28

Common Charges - Trading

Trading fee0.005% on gross trade value

SI fee - $1/SI

Money settlement fee - $1.2/SIStock settlement fee0.002% on gross trade

value, min $2 and max $100


25/28

Common ChargesSI

Bank charges :

Lodgment fee (Deposit) - $5 per lot, min $30

and max $500.

Handling fee (W/D) - $100 per request

Out-of-pocket charges :

SI fee - $1/SI

Stock settlement fee0.002% on gross trade

value, min $2 and max $100

SI versus payment - $1.2/SI


26/28

Common Charges

Physical share lodgment Bank charges :

Lodgment fee - $5 per lot , min $30 and

max $500.


Deed transfer fee ( Re-reg in Banks name ) - $5

per deedDeed transfer fee ( Re-reg in HKSCCs name) -

$5 per deed

Registration fee - $2.5 per certificate


27/28

Common Charges

Physical shares withdrawal

Bank charges :

Handling fee - $100 per request


Withdrawal fee ( by HKSCC) - $3.5 per lot


28/28

LSIP contact persons Manager Paul Chong (2571)

Assistant Manager Venus Tang (2624)

Assistant Vice President

Edwin Chan (2605) Assistant Manager Iris Kwok (2608)

General Enquire Francis Chong (2623)

Danidy Chow (2595)Iris Wat (2604)