Concept of customer standing authorization
The standing authorization of the customer is the authorization obtained by the Hong Kong brokerage from the customer in order to comply with the customer money and customer securities rules under the Securities and Futures Ordinance. This clause authorizes Webull to:
1. Webull can transfer money (including currency conversion) between the relevant separate accounts of customers in order to fulfill your settlement obligations, or to pay any responsibilities or obligations owed to any member of the Webull Group.
2. For overseas market transactions, Webull may need to transfer all or part of the customer’s proposed transaction amount to the customer’s separate account of an overseas securities broker to obtain pre-authorization for the transaction, and Webull may continue to broker in overseas securities The proceeds from the sale of stocks are deposited in the separate accounts of the merchant's customers.
3. As far as the margin account is concerned, the deposit of securities collateral in the local bank has obtained bank financial accommodation.
When to sign the client's standing authorization
In the third step of your account opening process, "Risk Disclosure", you need to check "Completely accept and agree to abide by the "Client Agreement"". When you agree to the client agreement, you have agreed to give Webull Securities a standing authorization. If you choose not to agree to the standing authorization, we will no longer be able to provide services to you.
What is the content of the standing authorization?
Standing authorization under the Securities and Futures (Client Money) Rules (applicable to cash and margin accounts): Please refer to Article 9.4 of the Client Agreement.
Standing authorization under the Securities and Futures (Client Securities) Rules (applicable to margin accounts): Please refer to paragraph 5 of Schedule A of Part III of the "Client Agreement".
How long is the standing authorization valid for?
The standing authorization is valid for one year, and the effective period start when your account is successfully opened. Webull will send a "renewal notice" and "renewal confirmation" to the customer service before the permanent authorization expires.
Renewal notice: Webull Securities will send a renewal notice to your account opening mailbox 14 days before the expiration of the standing authorization. You can choose to agree or refuse to renew. If you do not respond to the renewal notice, Webull will default to your consent to the renewal.
Renewal confirmation: Webull Securities will send a renewal confirmation to your account opening email address within one week after the expiry date of the standing authorization.