34. Deposits in client accounts

(1)

Where a depositor of an insured deposit placed with a failed Scheme member holds the insured deposit in a client account and the books of the Scheme member disclose —

(a)

the identity of a client and his share of the insured deposit; or

(b)

the identity of a client and the total number of clients in that client account,any client who is an insured depositor, but not the depositor, shall be entitled, in respect of the insured deposit held in the client account as at the quantification date, to compensation from the Fund.

(2)

For the purposes of subsection (1), where the clients in a client account consist of 2 or more insured depositors, each of those insured depositors shall be entitled, in respect of his share in the insured deposit as at the quantification date, to compensation from the Fund.

(3)

For the purposes of determining the share of each insured depositor in an insured deposit under subsection (2), each client in a client account which contains an insured deposit, whether or not he is an insured depositor, shall be deemed to have an equal share in the insured deposit unless there is an express provision to the contrary in the books of the failed Scheme member.

(4)

For the avoidance of doubt, subsection (3) does not affect any rights as between the clients themselves.[HK DPS Ord 2004, s. 29 (3) to (5)]

Terms defined in s 2

client account
Defined · s 2
“client account”, in relation to a depositor, means an account maintained by the depositor with a Scheme member for the purpose of holding moneys held by the depositor for a client of the depositor, whether or not other moneys may be held in the account;
Open s 2
depositor
Defined · s 2
“depositor” means any person who is entitled to repayment of a deposit, whether or not the deposit is made by him;
Open s 2
failed Scheme member
Defined · s 2
“failed Scheme member” means a Scheme member in respect of which the Authority has determined that compensation will be paid out of the Fund to insured depositors;
Open s 2
Fund
Defined · s 2
“Fund” means the Deposit Insurance Fund established under section 9;
Open s 2
insured deposit
Defined · s 2
“insured deposit” has the meaning as specified in the First Schedule;
Open s 2
insured depositor
Defined · s 2
“insured depositor” means any of the following depositors: (a)an individual, except an individual who places a deposit in an account with a Scheme member in the name of a partnership or sole proprietorship;(b)a charity as defined in section 2(1) of the Charities Act, which is —(i)registered under section 5 of that Act;(ii)specified in the Schedule to that Act; or(iii)excepted by regulations made under that Act;(c)such other person or class of persons as may be prescribed,and includes —(i)in the case of a deposit held by a trustee under a trust, a beneficiary of the trust who is a person specified in paragraph (a), (b) or (c) or the estate of a deceased person; and(ii)in the case of a deposit held by a depositor in a client account, the depositor’s client who is a person specified in paragraph (a), (b) or (c) and whose moneys are held in the client account;
Open s 2
quantification date
Defined · s 2
“quantification date” means —(a)the date on which a Scheme member is wound up; or(b)where a Scheme member is not wound up, the date on which the notice of payment of compensation is published in the Gazette under section 30(4);
Open s 2
Scheme member
Defined · s 2
“Scheme member” means a member of the Scheme;
Open s 2

Report

Read on from s 35

Schedules

Read on from Schedules