Risk of Client Assets Received or Held outside Hong. Kong Client assets received or held by CMSHK outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the SFO and the rules made thereunder. Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in Hong Kong.
Risk of Client Assets Received or Held outside Hong. Kong Client assets received or held by the licensed or registered person outside Hong Kong are subject to the Applicable Laws and regulations of the relevant overseas jurisdiction which may be different from the SFO and the rules made thereunder. Consequently, such Client assets may not enjoy the same protection as those Client assets received or held in Hong Kong. Risk of providing an Authority to Repledge your Securities Collateral There is a risk that if you provide the licensed or registered person with an authority that allows such person to apply your Securities or Securities collateral in accordance with a Securities borrowing and lending agreement, repledge your Securities collateral for financial accommodation or deposit your Securities collateral as collateral for the discharge and satisfaction of its settlement obligations and liabilities. If your Securities or Securities collateral are received or held by the licensed or registered person in Hong Kong, the above arrangement is permissible only if you consent in writing. Moreover, unless you are a professional investor, your authority must specify the period for which it is current and the period must be limited to not more than 12 months. If you are a professional investor, these restrictions do not apply. Additionally, your authority may be deemed to be renewed, without your written consent, if the licensed or registered person issues you a reminder at least 14 days before the expiry of the authority, and you do not object to such deemed renewal before the expiry date of your then existing authority. You are not required by any laws to sign these authorities. However, an authority may be required by licensed or registered persons, for example, to facilitate Margin lending to you or to allow your Securities or Securities collateral to be lent to, or deposited as collateral with, third parties. The licensed or registered person should explain to you the purposes for which one of these authorities is to be used. If you sign one of these authorities and your Securities or Securities collateral are lent to or deposited with third parties, those third parties will have a lien or charge on your Securities or Securities collateral. Although the licensed or registered person is responsible to you for Securities or Securities collateral lent or deposited under your authority, a default by it could result in the Loss of your Securities or Securities collateral. A cash securities account not involving sec...
