Client joining the scheme should open a master account (margin account or cash account) and sub-account(Share Mortgage Scheme Account, margin account).
Customer should deposit 30% of the investment amount (min HK$30,000) before joining the scheme.
Customer should at least purchase 1 broad lot or HK$100,000 equivelant stock(whatever which is higher) on the designated stock list.
Customer purchase same stock on the same trading day will regard as joining a same plan.
Handling fee (1% of purchase amount) will be charged.
The finance provided by Phillip should be repaid by 12 installments. Payment will be transferred from the Master Account to the Sub Account on the fifteenth day of each month.
Customers can request their Account Executive to sell their stock at market price at any time.
The fund received after the selling proceeds should be enough to cover the outstanding principal and interest accrued up to the settlement date. If the proceeds do not cover the outstanding principal and interest, the stocks remained will be sold out compulsorily on the next day at market.
There is no addition charge for early termination of the plan, but customer has to complete the early termination application form and deposit the outstanding principle and interest accrued to the master account.
There may be margin call if the net equity value (Market Value of Stock Collateral – Outstanding) of each contract in the Share Mortgage Account falls below 20% of the market value of the stock collateral.
Client can only buy and sell stocks at market price. All transaction order can be only placed by Account Executive. Internet trading is not accepted.
The scheme is for purchase amount form HK$100,000 to HK$1,000,000. Otherwise, it need special approval and takes longer time for approval.