Useful Hints

Q1

There are two categories of securities trading accounts:

 

Cash Account (including internet trading, telephone trading) and Margin Account.

 

 

Q2

How to open a securities trading account with Fair Eagle Securities Company Limited ?

 

In accordance with the Securities and Futures Commission, client should bring his/her HKID/Passport and supporting documents, visit Fair Eagle Securities Company Limited's office, and fill in relevant account opening documents: Account executives or customer service of Fair Eagle Securities Company Limited will indicate to clients regarding information on securities trading account opening and the underlying risk of securities trading.

 

[A] Client has to provide identity document(s) to open account as follows:

 

[1] HKID/Passport – Client has to endorse and certified true on photocopy of his/her HKID/Passport.

 

[2] Address-proof – Client has to endorse and certified true on photocopy of address-proof comprising utilities bill, or bank statements, or credit card statements etc.

 

[B] Client has to provide accurate bank account information: Accurate bank name and account number of client; If client furnishes incorrect bank account information, Fair Eagle Securities Company Limited will not be able to accurately bank in client's funds in his/her specified bank account.

 

[C] Initial deposit to open securities trading account is waived: Notwithstanding this, client will have to deposit the required securities purchase amount for his/her buy-order and Fair Eagle Securities Company Limited will update the balance of client's trading account with a daily combined statement to be despatched on day-end of T + 1 (trade date plus one trade day)

 

 

Q3

How long it takes for client to open a securities trading account ?

 

As soon as client provides all relevant identity documents and supporting documents, his/her securities trading account opening procedure could be completed and approved within one or two business day.

 

 

Q4

Venues for client to access and procure relevant account opening application forms.

 

1. Client could browse www.faireagle.com.hk, and download “cash account opening form” or “margin account opening form” for reference and information;

 

2. Client could call 2526 2538 asking for settlement department requesting for securities trading account opening application forms; or

 

3. Client could visit Fair Eagle Securities Company Limited's office at Room 1701, 17/F., Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong.

 

 

Q5

What is margin account ?

 

Margin account is based on the notion that client could purchase or trade securities with margin financing. Fair Eagle Securities Company Limited will finance client based on client's mark-to-market securities in his/her margin account. i.e. up to a certain percentage of his/her securities mark-to-market value and use his/her securities purchased as collateral. At the same time, the client is required to pay the margin interest. When the client's margin account has a market value that is lower than the mortgage level, client will have to top up his/her accounts with required additional deposits whereby the margin of his/her account will be maintained at the stipulated level acceptable to Fair Eagle Securities Company Limited.

 

 

Q6

What happen if there is insufficient margin deposit in the margin account ?

 

The mark-to-market value of securities bought by margin account clients fluctuates daily. When the client's margin account has a market value that is lower than the mortgage level (based on most up-to-date market value of securities), Fair Eagle Securities Company Limited will notify the margin account client and, if the required additional margin deposit is not envisaged in time, will sell client's securities in his/her margin account without any further prior notice. In this situation, Fair Eagle Securities Company Limited could sell clients’securities unilaterally according to the client's agreement and authorization letter signed.

 

 

Q7

Could the clients engage in short selling ?

 

At present, there is no such services offered by Fair Eagle Securities Company Limited.

 

 

Q8

When will client receive his/her money after sales of securities ?

 

When client sells his/her securities on trade date T, the net sales amount will be banked in client's specified bank account on T + 2, unless client settles with delivery of physical scripts and fails to deliver the shares to the company before or after T+2. Therefore, the client may not receive his/her net sales proceed on T+2.

 

 

Q9

Stock Deposit

 

 

 

[A] Physical scripts deposit (Stock Deposit)

(1) Client physically delivers physical scripts to Fair Eagle Securities Company Limited; (2) Settlement staff checks if the physical scripts are registered in client's name or that the physical scripts are in CCASS nominee's name with the required supporting documents such as bought note or withdrawal form; (3) Settlement staff verifies the signature of the physical scripts against the deposit slip; and (4) Settlement staff then deposit the stocks into CCASS according to the procedure prescribed by HKSCC and deposit the stock to client's securities trading account. Fees are required for deposit of physical scripts. Request received from client after 3:00 p.m. on each trade day will be implemented on next trade day.

 

[B] Independent investor account stock deposit (ISI Deposit)

Electronic stock transfer from CCASS to independent investor account via ISI-form ‘Securities Settlement Instruction Under CCASS’ instruction. Upon receipt of client's ISI-form instruction, and in the meantime client will have to separately inform CCASS regarding his/her ISI-form instruction, Fair Eagle Securities Company Limited will instruct CCASS to deposit the electronic stock in client's account with CCASS. Client's request received after 3:00 p.m. on each trade day will be arranged on the next trade day.

 

[C] Stock deposit from another stock broker (SI Deposit)

Electronic stock transfer from another broker, bank or financial institution to client's securities trading account in Fair Eagle Securities Company Limited via the SI-form ‘Securities Settlement Instruction Under CCASS’ instruction. Upon receipt of client's SI-form instruction, Fair Eagle Securities Company Limited will inform CCASS and settlement department of another broker, bank or financial institution to arrange the stock transfer within CCASS.  As soon as Fair Eagle Securities Company Limited ascertains the receipt of stock from another broker, bank or financial institution via CCASS, Fair Eagle Securities Company Limited will deposit the stock in client's securities trading account. The above process normally takes one business day to complete. Client's request received after 3:00 p.m. will be arranged on the next business day. Settlement fee is required for this stock transfer.

 

 

Q10

Stock Withdrawal

 

 

 

[A] Delivery of physical scripts (Stock Withdrawal)

(1) Client requests for withdrawal of stocks by completing and signing the stock withdrawal form; (2) Settlement staff shall verify client's signature against the account documents and check client's account status; (3) If in order, settlement staff shall input the withdrawal order into CCASS terminal. An authorized CCASS user will confirm this input and sign the stock withdrawal form; (4) On next trade day T + 1, settlement staff will follow the status of the withdrawal order: When status changes to “For Col”, physical scripts are ready for collection from CCASS; and (5) Settlement staff arranges for stocks to be withdrawn from CCASS according to the procedure prescribed by HKSCC. Fees are required for withdrawal of physical scripts. Request received from client after 3:00 p.m. on each trade day will be implemented on next trade day.

  • Please note: If the client receives the stock, he/she must immediately re-register. If the client does not receive any shareholders' equity in the future, the directors and their employees of Fair Eagle Securities Company Limited will not be liable for any losses and liabilities arising therefrom.
 

[B] Independent investor account stock withdrawal (ISI Withdrawal)

Electronic stock transfer from client's independent investor account via ISI-form ‘Securities Settlement Instruction Under CCASS’ instruction. Upon receipt of client's ISI-form instruction to transfer stock from his/her account, and in the meantime client will have to separately inform CCASS regarding his/her ISI-form instruction, Fair Eagle Securities Company Limited will inform CCASS to transfer the electronic stock from client's account with CCASS. Client's request received after 3:00 p.m. will be arranged on the next business day.

 

[C] Stock from another stock broker or exchange participant (SI Withdrawal)

Electronic stock transfer to another broker, bank or financial institution specified by client: the SI form ‘Securities Settlement Instruction under CCASS’ is required. Upon receipt of SI-form instruction from client, we will have to inform client-designated broker, bank or financial institution to receive the electronic stock from CCASS, Fair Eagle Securities Company Limited will inform CCASS regarding the stock transfer. Client's request received after 3:00 p.m. will be arranged on the next business day. Settlement fee is required for this stock transfer.

 

 

Q11

Where would Fair Eagle Securities Company Limited store clients’ securities ? Is it secured ?

 

Clients buy or hand over to our company's stock, client's securities are virtually and electronically stored at Fair Eagle Securities Company Limited’s CCASS account. Also, it's recorded in the client's account and will issue a statement to the client to prove. Fair Eagle Securities Company Limited will collect all the rights and interests of the stock on behalf of the client. If the client's stock does not qualify for CCASS, the client will be notified to withdraw the stock and keep it on its own. In order to benefit from the rights granted by the actions of the listed company, the client should receive the stock and immediately register the stock in the name of the individual.

 

 

Q12

Clients could bank-in their cheques, bank drafts or transfer fund as follows:

 

 

 

Company Name: Fair Eagle Securities Company Limited

Bank name: Bank of China (Hong Kong) Limited

 

Bank Account Number: 012-875-0-058703-7

 

 

 

Company Name: Fair Eagle Futures Company Limited

Bank name: Bank of China (Hong Kong) Limited

 

Bank Account Number: 012-875-0-058679-1

 

 

 

Company Name: Fair Eagle Finance Credit Limited

 

Bank name: Bank of China (Hong Kong) Limited

 

Bank Account Number: 012-875-0-058685-6

 

 

Q13

As soon as clients bank-in their cheques, bank drafts, or transfer fund in Fair Eagle Securities Company Limited’s stipulated bank account(s), how would clients inform Fair Eagle Securities Company Limited thereafter ?

 

 

 

Clients could return their bank-in slips, with securities trading account numbers written on the slips, via facsimile number 2845 5731 to Fair Eagle Securities Company Limited;

 

Clients could inform Fair Eagle Securities Company Limited's staff of settlement via telephone their bank-in slips and trading account numbers; and

 

Clients could visit our office and present their cheques and bank drafts by hand.

 

 

Q14

Procedures for withdrawal of funds from securities trading account (For Trust and Margin accounts)

 

 

 

A client may give instructions to Fair Eagle Securities Company Limited to prepare a cheque for withdrawal of funds from his/her account over the telephone or in person. The client may choose to collect the cheque at Fair Eagle Securities Company Limited's office or Fair Eagle Securities Company Limited may directly bank-in to client's designated bank account as stated in the Account Opening Information Form.

*** Note: After receiving the withdrawal request from the client, Fair Eagle Securities Company Limited will generally execute the order on the trading day. The withdrawal request received after 12 noon every day will be reserved for the next day.

 

 

Q15

How would client exercise his/her equity warrants ?

 

Client could exercise his/her equity warrants by giving instruction to Fair Eagle Securities Company Limited's staff of settlement via e-mail or telephone. Also, deposit the required subscription fees and charges..

 

 

Q16

How would Fair Eagle Securities Company Limited manage client’s dividend(s) and other rights as equity stakeholder ?

 

In case of dividend distribution by listed companies, the staff of the delivery department of Fair Eagle Securities Company Limited will deposit the dividends into the designated bank account of the client on the day of the dividend distribution. In case of bonus shares distribution by listed companies, Fair Eagle Securities Company Limited will immediately credit the customer's account after receiving the bonus shares. If the shares held by the client involve other interests (such as issuing new shares, bonds, etc.), Fair Eagle Securities Company Limited will notify the client in writing or by email, waiting for the instructions of the client.

 

 

Q17

What kind of statements would client normally receive ?

 

Combined Daily Statements (incorporating contract notes)

 

After client completes his/her trade on trade date, Fair Eagle Securities Company Limited will despatch to client a combined daily statement by day-end on T + 1 
detailing client's securities trading account, the relevant contract note(s) on trade date and the stocks held list.

 

Monthly Statements

 

Whenever there is any movement, adjustment, variation of terms, cash or stocks balance in terms of client's securities trading account, Fair Eagle Securities Company Limited will prepare and despatch monthly statement to client within 7 business days after month-end.

 

 

Q18

Would Fair Eagle Securities Company Limited provides investment advice to clients ?

 

Fair Eagle Securities Company Limited's website www.faireagle.com.hk provides updates on various cash market securities instruments and, via www.faireagle.com.hk, clients could procure useful information from other investment information services providers. Notwithstanding this, Fair Eagle Securities Company Limited would not ensure the authenticity and accuracy of investment information furnished from these services providers. Fair Eagle Securities Company Limited will continuously expand and update its website for the benefits of clients.

 

 

Q19

What kind of trade order(s) could clients despatch to Fair Eagle Securities Company Limited’s licensed account executives and dealers ?

 

Clients could give out buy- and sell-limit-order as well as buy- and sell-market-order to Fair Eagle Securities Company Limited's licensed account executives and dealers. Fair Eagle Securities Company Limited's ET-trade system will, according to client's instruction(s), execute client's trade request accordingly.

 

 

Q20

How to trade securities in the internet ?

 

For cash client who wants to trade over the internet, the client must complete and sign off the Supplemental Agreement for Internet Trading. Client could download this supplemental agreement from https://www.faireagle.com.hk. As soon as client's application for internet trading is approved, Fair Eagle Securities Company Limited will inform client via e-mail his/her login number and password. Client could trade in the internet immediately thereafter.

 

 

Q21

Could margin account client trade in the internet ?

 

No. Fair Eagle Securities Company Limited will not provide internet trading services to margin account clients.

 

 

Q22

If client does not have any personal computer equipments: what could he/she do to trade securities ?

 

Account executives and dealers of Fair Eagle Securities Company Limited will take trade order(s) from clients via telephone: these licensed specialists will only take trade order instructions from clients and will not furnish any investment advice to clients.

 

 

Q23

Is there any technical advice services from Fair Eagle Securities Company Limited regarding internet trading ?

 

In case of need, internet trading clients could contact with Fair Eagle Securities Company Limited via a technical assistance hotline 2526 2538