Cooperation with SFC and ICC
The Investor Compensation Fund (ICF) is established under the Securities and Futures Ordinance to pay compensation to investors who suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation to exchange-traded products in Hong Kong. The ICF is administered by the Investor Compensation Company (ICC) which is a wholly-owned subsidiary of the Securities and Futures Commission (SFC).
Under certain circumstances, a deposit held by a depositor at a failed bank may be protected simultaneously by the DPS and the ICF. To avoid overlapping of compensation paid to depositors / investors, the Board has entered into a Memorandum of Understanding jointly with the SFC and the ICC aiming at fostering cooperation among the parties and information exchange.
International participation
As a member of the International Association of Deposit Insurers (IADI), the HKDPB participates in IADI conferences and seminars and other events organised by the Association’s members, and shares relevant knowledge and experiences on deposit protection issues. The HKDPB has also entered into information sharing and cooperation arrangements with some deposit insurers outside Hong Kong. Such international exchanges are important in enabling the HKDPB to keep abreast of overseas developments and ensure that the DPS remains in line with international best practice.
