Hong Kong Ordinances

DEPOSIT PROTECTION SCHEME ORDINANCE - SECT 29

Entitlement to compensation: bare trusts and client accounts

(1) Subject to this Division, if a depositor of a protected deposit with a
failed Scheme member holds the deposit as a bare trustee under a bare trust,
the beneficiary, but not the depositor, is entitled, in respect of the deposit
as at the date of the specified event, to compensation from the Fund.

(2) Subject to this Division, if a depositor of a protected deposit with a
failed Scheme member holds the deposit as a bare trustee under different bare
trusts, the beneficiary of each of those trusts, but not the depositor, is
entitled, in respect of the portion of the deposit held under the trust as at
the date of the specified event, to compensation from the Fund.

(3) Subject to this Division, if a depositor of a protected deposit with a
failed Scheme member holds the deposit in a client account for a client, the
client, but not the depositor, is entitled, in respect of the deposit as at
the date of the specified event, to compensation from the Fund.

(4) If the beneficiary or client consists of 2 or more persons—

   (a)  in the case where the persons carry on business in partnership, those
        persons are, for the purpose of entitlement to compensation from the
        Fund, a single and continuing body of persons as distinct from the
        persons who may from time to time be the members of the partnership;

   (b)  in any other case, each of those persons is entitled, in respect of
        his share in the protected deposit as at the date of the specified
        event, to compensation from the Fund.

(5) For the purposes of subsection (4)(b), each of the persons is deemed to
have an equal share in the protected deposit unless the contrary is proved to
the satisfaction of the Board.