What is a Standing Authority?
A Standing Authority is a written authorization provided in advance by the client to uSMART Securities Limited, allowing us to handle the client's money, securities, or securities collateral from time to time within the scope of the authorization, without obtaining separate written instructions for each transaction.
Common purposes include:
- S. Securities Trading – When you trade U.S. securities, you authorize us to transfer funds to our U.S. executing broker account for trading purposes and, after settlement, to transfer the funds back from the U.S. executing broker account to your account.
- Margin Financing – If you are a margin client, you authorize us to pledge your securities as collateral for financing when necessary (not applicable to cash clients).
The specific scope of the Standing Authority is governed by the Client Agreement and the relevant Standing Authority document(s) that you have agreed to.
Please note that if your securities or securities collateral are lent, pledged, re-pledged, or deposited with a third party pursuant to the Standing Authority (applicable only to margin clients), such third party may have a lien, security interest, or other rights over the relevant assets. If that third party defaults or becomes insolvent, you may suffer losses or experience delays in recovering your assets.
We also offer cash accounts, which do not involve the lending or pledging of your securities as described above. If you do not require margin financing or do not wish your securities to be lent or pledged, you should choose to open a cash account.
