We use cookies to give you the best possible experience on our website. By continuing to browse this site, you give consent for cookies to be used. For more details, please read our Online Terms & Conditions, Privacy Policy, Cookies Policy and Personal Information Collection Statement.
We recommend using a computer web browser or Hang Seng Mobile App to log on for enhanced security. Please visit "Security Information Centre" for more security tips.
Central Securities Depositories Regulation (CSDR), Art 38(5) Offer and Art 38(6) Disclosure
Central Securities Depositories Regulation (CSDR), Art 38(5) Offer and Art 38(6) Disclosure
The European Union’s CSDR is designed to increase the safety and efficiency of securities settlements and settlement infrastructures as well as to apply high prudential requirements for Central Securities Depositories (‘CSDs’).
Under Article 38(5) of the CSDR, Hang Seng Bank Limited (‘Hang Seng’), as a direct participant of a CSD in the European Economic Area (EEA), must offer its clients whose securities are held through the CSD the choice between an Omnibus Client Segregated Account (OSA) and an Individual Client Segregated Account (ISA). In addition, article 38(6) of the CSDR requires Hang Seng to 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.
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 Hang Seng’s own proprietary securities. An OSA is used to hold the securities of a number of clients on a collective basis. However, Hang Seng does not hold its own proprietary securities in Omnibus Accounts.
The article 38(5) CSDR requirement only applies where a Hang Seng is a direct participant of an EEA CSD. For example, Hang Seng is not required to offer the choice between an ISA and an OSA in respect of securities which it is holding for clients through a sub-custodian who in turn is the CSD participant for the securities.
The article 38(5) and (6) CSDR requirements become effective as of the date of authorization of the relevant CSD under the CSDR. Please click on the link below for the “Notice to clients of Hang Seng Bank Limited, under CSDR Article 38(5) and (6)”.
Notice to clients of Hang Seng Bank Limited under CSDR Article 38(5) and (6) (PDF)