Custodian and Broker Risk. Customer assets may be held or delivered for settlement to a custodian or broker or other service provider (whether within or outside Hong Kong) appointed in good faith by CMSHK, or sub-custodians. Such persons are not under the control of CMSHK, and CMSHK accepts no liability for any default of any nature by such third party custodians or brokers, or arising from the transfer of client assets to any such third party for any purposes, and in the event of any such default the Customer may suffer total or partial loss in respect of the Customer's investment. The Customer should familiarise himself with the protections given to money or other property which CMSHK deposits on the Customer's behalf for domestic and foreign Transactions, particularly in the event of the insolvency or bankruptcy of a custodian or broker. The extent to which the Customer may recover his money or property may be governed by specific legislation or local rules. In some jurisdictions, property which may be identified as the Customer's will be pro-rata shared with the other creditors of the insolvent or bankrupt custodian or broker in the same manner as cash for purposes of distribution in the event of a shortfall.
