Asked on 29 Apr 2020
1) Do we get back our shares if the broker offers a CDP account?
2) What if it isn't a CDP, what happens?
3) Is there a SDIC equivalent for brokers?
In the cases of bank deposits, sometimes people will stored the max insured by SDIC in each bank, does this logic work for brokerage firms?
Charles Schwab a discount brokeraged closed just 2 years after starting in Singapore.
"client funds will either be transferred to a new broker-dealer or liquidated and returned to clients ".
For iFast (FSM):
"All assets are registered in the name of iFAST Financial Pte Ltd - Client Trust, and subject to MAS regulations. If iFAST Financial Pte Ltd (‘iFAST’) ceases as a business concern, your assets are protected. The creditors of iFAST will have no claim over your assets.
For SGX-listed securities, iFAST is a CDP Approved Depository Agent (DA) so we will also maintain a sub-account with CDP on behalf of each client, even though the listed securities are held with iFAST.
In the unlikely event that iFAST ceases operations, your investment holdings held under custody with iFAST will not be affected as they will either be returned to the investors or transferred to another agent of your choice. iFAST will ensure that all liabilities and obligations to all clients have been fully discharged or provided for, and that proper arrangements have been put in place."
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01 May 2020
03 May 2020
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