Advertisement
What will happen if financial institutions such as FSMone goes bankrupt?
Will my investment in the custodian be protected? What is the process of getting the investment back? Thank you in advance.
3
Discussion (3)
Learn how to style your text
Reply
Save
Elijah Lee
24 May 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi Jing Wei,
Under sections 16, 17, 26 and 27 of the Securities and Futures (Licensing and Conduct of Business) [https://sso.agc.gov.sg/SL/SFA2001-RG10], the gist of it is that the brokerage firm must keep customer assets in a trust account separate from the firm's own assets. These assets will be excluded from claims from creditors. That's the protection that is available for investors.
However with regards to the claim process, I'd imagine that each broker has their own set of processes, so I am unable to comment. Possibly you will get a certificate stating what you own, and with that, use it to transfer your holdings to another broker.
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Products
4.3
256 Reviews
$8.80
MINIMUM FEE
0.08%
TRADING FEES
Custodian
STOCK HOLDING TYPE
4.7
485 Reviews
4.5
958 Reviews
Related Posts
Advertisement
Some input here on U.S. domiciled brokers:
https://lazybutintelligentinvesting.wordpress.c...