27-06-2017, 09:11 PM
I'm not sure whether the shares are kept under our name in CDP, or under iFAST's CDP account. My assumption is that people who buy shares through iFAST have their shares 'comingled' with other customers of iFAST; all their shares are held under iFAST's CDP account. iFAST then has the responsibility to keep proper and segregated accounts of each of its customer's shareholdings, because CDP doesn't know to whom those shares belong to, right? Please correct me if I am wrong.
As for cash, I believe they should be held in a trust account, where again iFAST has the responsibility to keep proper and segregated accounts of each of its customer's cash holdings, right? If iFAST goes belly up, it could take some time before the judicial managers sort out the mess and return customer's monies. That is if the monies isn't already misappropriated for other purposes like trading loses. But of course, I don't think iFAST trades its own account so the risk of this happening is low. Please correct me if I am wrong.
As for cash, I believe they should be held in a trust account, where again iFAST has the responsibility to keep proper and segregated accounts of each of its customer's cash holdings, right? If iFAST goes belly up, it could take some time before the judicial managers sort out the mess and return customer's monies. That is if the monies isn't already misappropriated for other purposes like trading loses. But of course, I don't think iFAST trades its own account so the risk of this happening is low. Please correct me if I am wrong.