Safeguarding your security trading interests

Financial intermediaries

From time to time, the Securities and Futures Commission (SFC) may require licensed firms' clients to confirm their account balances and provide additional information with respect to their dealings with the licensed firm.

This confirmation exercise is important for the SFC to supervise the licensed firms. You will find the following information in the SFC confirmation request letter:

  • Statement of account: Record details of the movements in your account with the licensed firm, including cash balance and stock holdings as at the statement date and transactions during the statement period.
  • Reply form: Asking you to confirm if the information in the enclosed statement of account is complete and correct. If any discrepancies are noted, please record them in the reply form and report promptly to the SFC staff.
  • Confirmation questionnaire: Asking your experience in dealing with the licensed firm such as any irregularities noted in receiving trade documents and settlement cheques, and depositing/withdrawing funds and physical scrip.

When you receive a confirmation request from the SFC, please promptly respond to the SFC directly after carefully checking the information in the enclosed statement of account against your own records.

The confirmation request is generally sent to you by mail. Please return the completed confirmation to the SFC using the enclosed return envelope within the specified date. You may call the SFC's Intermediaries Supervision Department at 2231 1222 (Press "2" after language selection) to verify if the SFC has sent you the confirmation request.

Five pointers

  • Do not ignore the confirmation request
  • Promptly and carefully check all information in the statement of account
  • Sign and return the completed confirmation and questionnaire promptly and directly to the SFC
  • Record any discrepancies and promptly report these to the named SFC staff on the confirmation request
  • Do not discuss the discrepancies with the licensed firm nor return the confirmation to the firm