This page sets out certain regulatory disclosures that we are required to make to our customers from time to time.
Central Securities Depositories Regulation, Art 38(5) Offer and Art 38(6) Disclosure
As a direct participant of a Central Securities Depository (CSD) in the European Economic Area, we are required to:
(1) offer our clients whose securities are directly held through the CSD the choice between an Omnibus Client Segregated Account (OSA) and an Individual Client Segregated Account (ISA) and inform clients of the costs and risks associated with each option (Article 38(5) of the Central Securities Depositories Regulation (CSDR))
(2) publicly disclose the levels of protection and the costs associated with the different levels of segregation that the accounts provide, and to offer those services on reasonable commercial terms (Article 38(6) of the CSDR)
An ISA is used to hold the securities of a single client and therefore the securities of that client are held separately from the securities of other clients and HSBC’s own proprietary securities. An OSA is used to hold the securities of a number of clients on a collective basis. However, HSBC does not hold its own proprietary securities in OSA.
The article 38(5) and (6) CSDR requirements listed above become effective as of the date of authorization of the relevant CSD under the CSDR. Please click on the link below for detailed information about what it means for you, the ISA offer to clients and the relevant disclosures. Please note that the below disclosures are applicable to HSBC Broking Securities (Asia) Limited. For other lines of business within HSBC, please refer to the disclosures on their respective websites.