Title: BRIEFING ON INVESTOR PARTICIPATION IN CCASS
1INVESTOR ACCOUNT SERVICE IN CCASS
January 2005
2Agenda
1. Background 2. Benefits 3. Functions 4. CCASS
Service Fees 5. Admission Criteria Account
Opening Procedure 6. Service Hours
2
3Background
- Investor Account Service in CCASS launched in
- May 1998
- A computerised book-entry clearing and
settlement - system for transactions in securities listed
on the Stock - Exchange of HK
- Design for individual and corporate investors
in HK - Accept BVI incorporated company since Dec 1999
-
3
4Benefits
- Control over the movement of shares deposited in
CCASS - Receive records of shareholdings in CCASS
- Enjoy better legal protection of shareholdings in
CCASS
4
5Benefits
- Receive corporate information directly from
listed issuers - Enjoy a variety of communication channels,
including CCASS Phone System, CCASS Internet
System and the Customer Service Centre
5
6Functions
- An Investor Account is a depository account for
share - custody
- Purchases and sales of stocks made by Investor
- Participants (IP) and the resulting
settlements will - continue to be handled by CCASS Broker or
- Custodian Participants
6
7Functions - Transaction Flow
Buy/Sell order details IP A/C No.
BROKER
IP
Input ISI
Place order
Input/Affirm ISI
AMS/3
CCASS
7
8Functions - Stock Transfer
- Investor Settlement Instructions (ISI) are
used to - initiate stock transfer and money settlement
- electronically through CCASS between IP and
- Broker, Custodian, Stock Lender or
- Stock Pledgee Participants
8
9Functions - Stock Settlement
- The ISI will be settled upon input or
affirmation - (if the input/affirmation datesettlement day,
and - there is sufficient stock in the delivering
partys - stock account)
- OR
- To be settled on the stock settlement day
- (if the IP inputs/affirms the ISI before the
settlement day)
9
10Functions - Money Settlement
Electronic money settlement between CCASS and
Participants
CCASS generates the following instructions for
money settlement
Electronic Payment Instruction (EPI)
Direct Debit Instruction (DDI) / Direct Credit
Instruction (DCI)
To process the money settlement of an ISI
between an IP and a Broker/ Custodian Participant
To process the money settlement between an IP
and CCASS e.g. dividend payment
10
11Functions - Money Settlement
- Following payment options available for ISI
transaction - Free of Payment (FOP)
- Money settlement is to take place outside CCASS
- and HKSCC is not involved
- IP should arrange with their counterparties if
- money settlement is required outside CCASS
11
12Functions - Money Settlement
- Delivery versus Payment (DVP)
- Shares settled in advance to money settlement
- An Electronic Payment Instruction (EPI) will be
- generated to IPs and non-IPs designated bank
at - day end of the settlement day to effect the
payment.
12
13Functions - Money Settlement
- Delivery versus Payment (DVP)
- Funds will then be debited from or credited to
the - IPs designated bank account through the
overnight - interbank clearing process
- Receipt of payment must be monitored by both
- delivering and receiving parties
13
14Functions - Money Settlement
- Realtime Delivery versus Payment (RDP)
- Shares will be put on-hold in the delivering
- Participants (IP or non-IP) stock account
upon - affirmation
- CCASS will generate a CHATS payment instruction
- to the receiving Participants (IP or non-IP)
- designated bank to effect payment
14
15Functions - Money Settlement
- Realtime Delivery versus Payment (RDP)
- If the payment confirmation is received from the
- bank before 330pm, the shares will be
delivered to - the receiving party (IP or non-IP)
immediately. - Otherwise, the on-hold shares will be released
back - to the delivering party (IP or non-IP) and
CCASS - will continue the process on the next
settlement day.
15
16Functions - Nominee Services
- Value-added service to our account holders
- Deposited shares re-registered under the name of
HKSCC Nominees Limited - Receive corporate information directly from
listed issuers, e.g. annual reports and notices - HKSCC will collect benefit entitlements for IP
and distribute to their stock/money accounts
electronically -
16
17Functions - Nominee Services
- Apply for initial public offering and tender
electronically via CCASS - HKSCC will send statements and provide enquiry
function to IP about the corporate actions and
deadlines, such as subscription, voting
dividend election requiring their action
17
18Functions - Short Message Services (SMS)
- Short Message Services (SMS) include
- Investor Settlement Instructions (ISIs)
- Announcement summary and deadline for dividend
election and voting instructions - EIPO and tender announcements
- Rejected transactions such as Direct Debit
Instruction
18
19Functions - Communicating with CCASS
- CCASS Phone System
-
- CCASS Internet System
-
- Customer Service Centre
-
19
20Functions - CCASS Phone System
- A CCASS Phone User ID/Password will be provided
to each user of the Investor Account for
accessing the CCASS Phone System - Can input and affirm ISIs, check account
balances, and input instruction of initial public
offering and corporate actions etc.
20
21Functions - CCASS Internet System
- IP can operate their Investor accounts via
Internet by using a self created Internet User ID
or an e-Cert issued by Hongkong Post - Can input and affirm ISIs, check account
balances, obtain statements, view circulars and
input instruction of initial public offering and
corporate actions etc.
21
22Functions - Customer Service Centre
- IP can submit instruction input requests to the
Customer Service Centre in person as an
alternative to the CCASS Phone System and CCASS
Internet System
22
23Functions - Statements
- IP can choose to receive the following statements
by - mail or view it via CCASS Internet System
- Activity Statement details of activity done on
the statement date - Monthly statement stock balance and fees
payable for the month
23
24CCASS Service Fees
- Account-opening deposit 1,000 and SMS fee are
waived until 30 June 2005 - Fee concession within first 10 settlement days
from account opening day
24
25CCASS Service Fees
- HKSCC charges IP the same fees as it charges
other CCASS Participants (subject to adjustments
in minimum and maximum fees, where appropriate) -
25
26CCASS Service Fees (Example)
- Stock Custody Fee
- 0.012 per board lot or odd lot, subject to a
minimum - fee of 20 a maximum fee of 3,000 per month
- e.g. If month-end stock balance 1,000 board
lots - Custody fee for that month
- 1,000 board lots x 0.012 1.2
- Therefore, the Stock Custody Fee is 20
-
26
27CCASS Service Fees (Example)
- Dividend/Interest Collection Fee
- 0.12 of the cash amount of dividend/interest,
subject to - a minimum fee of 10 (or the gross amount of
cash - dividend/interest if smaller than 10), and a
maximum - fee of 500 per stock/debt in one currency on
the same day - e.g. if the dividend 1,000
- Dividend/Interest Collection Fee 1,000 x 0.12
- 1.2
- Therefore, the Dividend/Interest Collection Fee
is 10
27
28CCASS Service Fees (Example)
- ISI Stock Settlement Fee
- 0.002 of the gross value for each ISI
transaction, - subject to a minimum fee of 2 and a maximum
fee - of 100 for each transaction
- e.g. if the gross value 100,000
- ISI Stock Settlement Fee
- 100,000 x 0.002
- 2
28
29Admission Criteria
Individual Investor Accounts
Joint Individual Investor Accounts
HKID Card Holders aged over 18 Up to a maximum
of 4 investors per account
HKID Card Holder aged over 18
29
30Admission Criteria
Corporate Investor Accounts
- Corporations incorporated in HK under the HK
- Companies Ordinance, or by any legal entity
- incorporated in HK under HK Law
- Overseas Corporations incorporated in the
British - Virgin Islands (BVI) under the International
- Business Companies Act (IBC Act)
30
31Account Opening Procedure
- For individual and joint account, applicant(s)
can come in person to our Customer Service Centre
or send the following documents by mail to open
the Investor Account - Account Opening Form
- Investor Participant Debit Authorisations and
Authorisation - to Disclose Information Form
- Photocopy of the Hong Kong Identity Card
- Photocopy of the latest bank statement (or
cheque) showing - the account name and number of the HK dollar
account
31
32Service Hours For Enquiry Hotline
- Investor Service Enquiry Hotline 2979 7000
- Service Day Time
-
- General Enquiries Daily 24 hours
- Operator Assistance Monday Friday 900am -
600pm - Saturday 900am - 100pm
32
33Service Hours For Customer Service Centre
- Customer Service Centre
- located at Upper Ground Floor, V-Heun Building,
- 128-140 Queens Road Central, Hong Kong
- Service Day Time
- General Enquiries Monday Friday 900am -
600pm - Opening of
- Investor Account
33