Authorisation Letter to Financial Institution

The 'Authorisation Letter to Financial Institution' is a document that grants permission to a financial institution to open and maintain a cash/margin investment/securities trading account on behalf of the account holder. The document starts with a formal address to the financial institution and includes the current date. It is addressed to the account job company and provides the company's address. The letter serves as a request and authorization for the financial institution to open and maintain the specified account.

 

The document emphasizes the importance of the agreement that accompanies the authorization. It states that the agreement forms an integral part of the authorization and that the account and any dealings in securities will be subject to the provisions of the agreement. The account holder confirms receipt of a signed copy of the agreement.

 

To open the account, the account holder must enclose a duly completed and signed account opening form, copies of their Hong Kong identity card/passport, and a copy of a bank statement or utility bill from the last 3 months as proof of home address.

 

The account holder warrants that the information provided in the account opening form is true and correct. They also undertake to promptly inform the financial institution of any material changes to the information.

 

The document confirms that there are authorized persons who are authorized on behalf of the account holder to give oral, telephone, or written instructions regarding the operation of the account, as well as purchases, sales, holdings, and other dealings in securities and transfer of funds. The document states that the signatures provided by the authorized persons are genuine and operate as their specimen signatures.

 

The account holder acknowledges that the financial institution is entitled to rely and act on any instructions given by the authorized persons on their behalf. This applies to both oral, telephone, and written instructions. In the case of joint account holders, the authorization remains in force upon the death of any account holder unless written notice to the contrary is provided.

 

The document states that all confirmations and statements issued by the financial institution in relation to the account shall be conclusive and binding on the account holder. The account holder elects for all investment/trading in securities to be conducted by the financial institution as their agent on a cash/margin basis.

 

The account holder declares that they have been duly explained the contents of the authorization, account opening form, and agreement in a language (English or Chinese) that they understand. They agree to be bound by the provisions of these documents.

 

The 'Authorisation Letter to Financial Institution' is a crucial document that grants permission for the opening and maintenance of a specified account. It ensures that the financial institution has the necessary authorization and instructions to carry out transactions on behalf of the account holder.

How to use this document?

1. Fill in the recipient details: Enter the name and address of the account job company to whom the letter is addressed. Make sure to provide accurate and complete information.

2. Specify the type of account: Indicate whether the account to be opened is a cash account, margin account, or securities trading account. Clearly state the purpose of the account and the types of transactions that will be conducted.

3. Provide personal information: Complete the account opening form with your personal information, including your name, identification details (Hong Kong identity card/passport), and proof of home address (bank statement or utility bill from the last 3 months).

4. Confirm the accuracy of information: Warrant that the information provided in the account opening form is true and correct. Undertake to promptly inform the financial institution of any material changes to the information.

5. Designate authorized persons: List the individuals authorized to give instructions on your behalf regarding the operation of the account, securities transactions, and fund transfers. Ensure that the provided signatures are genuine and serve as specimen signatures.

6. Understand the agreement: Acknowledge that the agreement accompanying the authorization is an integral part of the document. Confirm receipt of a signed copy of the agreement and familiarize yourself with its provisions.

7. Grant reliance and authority: Acknowledge that the financial institution is entitled to rely and act on instructions given by the authorized persons on your behalf. This applies to both oral, telephone, and written instructions.

8. Joint account considerations: If the account is a joint account, understand that the authorization remains in force upon the death of any account holder unless written notice to the contrary is provided.

9. Conclusive statements and binding agreements: Agree that all confirmations and statements issued by the financial institution regarding the account shall be conclusive and binding.

10. Specify investment/trading basis: Elect whether all investment/trading in securities should be conducted on a cash basis or margin basis.

11. Confirm understanding and agreement: Declare that the contents of the authorization, account opening form, and agreement have been duly explained to you in a language (English or Chinese) that you understand. Agree to be bound by the provisions of these documents.

By following these steps, you can effectively use the 'Authorisation Letter to Financial Institution' to grant permission for the opening and maintenance of the specified account.