Cooperation with SFC and ICC
The Investor Compensation Fund (ICF) is established under the Securities and Futures Ordinance to pay compensation to investors who suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation to exchange-traded products in Hong Kong. The ICF is administered by the Investor Compensation Company (ICC) which is a wholly-owned subsidiary of the Securities and Futures Commission (SFC).
Under certain circumstances, a deposit held by a depositor at a failed bank may be protected simultaneously by the DPS and the ICF. To avoid overlapping of compensation paid to depositors / investors, the Board has entered into a Memorandum of Understanding jointly with the SFC and the ICC aiming at fostering cooperation among the parties and information exchange.
Cooperation with Deposit Insurers Outside Hong Kong
To foster information sharing and cooperation, the Board has entered into Memoranda of Understanding (MoUs) or other formal arrangements with the following deposit insurers outside Hong Kong:
|Type of Arrangement
|The Association of German Banks
|The German Private Banks’ Statutory Compensation Scheme
|Deposit Insurance Corporation of Japan
|Exchange of Letters
|Singapore Deposit Insurance Corporation Limited
|Central Deposit Insurance Corporation, Taiwan