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Press Releases
09-06-2004
Investor Compensation Company Limited - One Year On and Looking Ahead
The Investor Compensation Company Limited ("ICC") is pleased to report that the ICC has been operating smoothly since the enactment of the Securities and Futures Ordinance ("SFO").
The Investor Compensation Fund ("Fund") was established under the SFO on 1 April 2003 to pay compensation to investors who suffered pecuniary losses as a result of a default of a licensed intermediary, including securities and futures dealers, registered institutions under the Banking ordinance and margin financiers. The ICC is recognized by the Securities and Futures Commission as the company to administer the Fund and process the claims.
In the past year, effort has been successfully made to set up the operational infrastructure of the ICC as an entirely new company in a start up situation, such as hiring staff, establishing various operational procedures, appointing suppliers and vendors, and setting up a new office.
A Board of Directors has been also established to manage the ICC with Ms. Anna H Y Wu, SBS, JP as the Chairperson of the Board. Four committees have been set up to perform and advise on different functions and operations of the ICC, namely Audit and Remuneration Committee, Claims Committee, Management Committee, and Public Relations & Investor Education Committee.
So far, no large-scale default claim has been reported since the establishment of the Fund. Up to 31 May 2004, the ICC has received four isolated claims. One was rejected and the other three claims are still being processed and under investigation. The total amount of alleged loss in the three disputed cases is estimated to be HK$2.3 million.
Going forward, the ICC aims to create public awareness in the investment community, especially amongst retail investors, so that the public can have greater confidence in the market and can file a claim with the ICC promptly and effectively in the event of intermediary defaults.