Installments Margin Scheme

Introduction

Bright Smart Securities is now providing a one shop service called “Installments Margin Scheme” to all our valuable customers. Under this new scheme, customers should purchase stocks at a targeted price and in the payment of which by installments. Investors who wish to take part in this plan can do so simply by opening an account with us called “Account of Installment Margin Scheme” (overseas customers included), then paying 30% of the total investment upfront as the first installment, while Bright Smart Securities will finance up to 70% to you, thus allowing you to buy-in stocks all at once at market price then paying back the balance later in a year. Furthermore, you may sell all your stocks anytime during, or after your financing period at your discretion, without requiring to sell the investment at installments. Also, the particular stock you select for this plan must be a qualifying stock that is listed under “Installment Participating Stocks”, in the case that clients have a preference to invest in non-participating stocks, you are welcome to contact us for further discussion and consideration.  

To participate in this plan, client must do the following: 

i. Choose the Stock that you wish to buy

ii. Set the quantity of stocks for purchase (Must also deposit 30% of the total investment)

When a client wishes to participate in “Installment Margin Scheme”, you must first read and fill out the “Installments Margin Scheme” application, then reserve and deposit 30% of the total investment (Or minimum of HK $10,000) into your “Account of Installments Margin Scheme”, the remaining 70% of the investment will be financed by Bright Smart Securities. Once this step is completed, you may place your purchase order directly with one of our customer representatives via telephone. The term of finance is 1 year in 12 separate installments, monthly payment is due on the 8th of each month at 1:00pm or before. If the due date in any month falls on a public holiday, it will automatically be pushed to the preceding working day (Overdue will be charged a penalty fee on an annual interest of P+5% (10%), and the client shall pay back immediately).


 

Advantages of “Installments Margin Scheme”

1. The trend of property prices points downward. You can start off saving by buying a pot of stocks, and home purchase when the prices cool down.
2. Offering a superb low interest rate (P-1.75% = 3.5) (interest is calculated on a progressive basis, and the most favorable rate of Bank of Communications prevails).
3. Most likely the dividends received on the entire investment are enough to pay off the interest incurred on the Installments Margin Scheme.
4. All stocks belong to you in a year later.
5. The stocks may be sold at your discretion at anytime.
6. Low costs; no annual fees, storage fees, and no fees on transfer of securities from other brokerages or banks.
7. 80 participating stocks for you to choose.
8. Bright Smart's installment scheme is very different from the monthly stock payment plans offered by other securities firms or banks. As our company allows investors to purchase stocks all at once at a “target price”, and this prevents the increase in cost resulting from the possible rise of stock prices, while other brokerages and banks in fact only allow investors to buy stocks in batches over their planned period.


 

 

Terms and Conditions

1. Clients have already opened a Margin Account.
2. Clients participating in the Installments Margin Scheme must reserve at least HK$10,000 as deposit in their account.
3. Clients must buy at least one board lot (for those securities within the list of designated securities for installment) or must buy worth of securities of HK$10,000(whichever is higher).

4. Buy or sell:

(a) When clients participate in the Installments Margin Scheme, they must complete the Application Form and reserve 30% of the value of the intended securities (or at least HK$10,000). They can then place order instructions directly through telephone (the remainder 70% of the value of the intended securities will be paid by Bright Smart first).

(b) Meanwhile, clients can at anytime sell all securities through telephone (please note that our Company does not accept clients to sell part of or a portion of securities).

5. Clients applying for the same security, the same installment schedule within the same trading day are regarded as enrolling for the same security. We will consolidate their applications after close of trading hours.

6. Monthly Installment:

During the participation in the Installments Margin Scheme, clients are required to pay the monthly installment by depositing funds to Bright Smart Securities at or before 1:00 pm on the 8th day of each calendar month (the reference time should be taken from the bank confirmation of deposit), in accordance with the monthly contribution amount stated on the Repayment Schedule (our company provides different Repayment Schedule to different clients based on their different stocks holding and amount of outstanding) (if the 8th day of any calendar month is not a trading day, the previous trading day shall be taken as the repayment day). Failure to serve the monthly installment will render the clients to pay a P+5% default interest which are required to be paid immediately.

7. If Clients default in payment, we reserve the right to liquidate clients’ positions at anytime. Clients should bear the relevant fees and any outstanding amount due to us.
8. During the monthly installment, if clients early sell the securities or repay all loans, our Company will charge clients 1% of the outstanding amount as the administration fee.
9. If existing clients want to transfer the securities and outstanding amount from securities account or margin account to Installments Margin Scheme account, they will be charged 2% of the outstanding amount as the administration fee.
10. When our Company issues margin calls, clients will then deposit funds into their accounts to cover the shortfall. To this effect, our Company will issue another Repayment Schedule on the remaining outstanding loan amount. The installment period will remain the same.
11. Clients should follow the terms and conditions of our margin account. For details, please refer to the Clause 3 of Section III of the Terms and Conditions of Trading Account.
12. If there is rights issue, clients must pay full amount of the rights issue. Otherwise our Company will not exercise the rights on the clients' behalves.
13. Mortgaged portions and the list of designated securities will vary depending on the market situation. Clients should take note of the situation on the day they apply for the Scheme.
14. Clients should be bound by the relevant sections under the Account Opening Form, the Client Acknowledgement and the Terms and Conditions of the Trading Account.
15. Our Company may vary the above terms at anytime. Our Company will notify clients. Clients could also refer to the notice of amendments and details of amendments posted onto our website or call us by phone for enquiries.

16. Risk Disclosure:

Investors should pay attention: Investment involves risk. The price of investment product can go up or down. Investors should understand the risk of the investment product and consult professional advice before investment. Clients could read further from the risk disclosure statements attached onto our Account Opening Form to understand the risk level of each product in details. Clients could also refer to Section IX “Risk Disclosure Statement” of the Terms and Conditions of Trading Account for complete details.

17. In case of discrepancies between the English and Chinese versions of this Application Form (Terms and Conditions), the Chinese version will prevail.