Separate Deposit System
In accordance with the Financial Investment Services and Capital Markets Act
Separate Deposit System
Purpose of Introduction
To protect securities and derivatives investors from the possible bankruptcies of investment dealers and brokers by separately managing investment funds collected from them in accordance with the Financial Investment Services and Capital Markets Act.
Types of Investors' Deposits
| Investors' Deposits for Securities Trading | Funds deposited with an investment dealer or broker by a customer for purchasing securities |
|---|---|
| Investors' Deposits for Derivatives Trading | Funds deposited with an investment dealer or broker by a customer for trading derivatives on the Korea Exchange |
Depositing Method
- Investment dealers or brokers must specify that the funds they are depositing are their customers' assets
- Investment dealers or brokers must choose between a deposit account or a trust account for their investors' deposits
- Investment dealers must calculate the amount of investors' deposits that must be re-deposited with Veltinis International Group every business day and re-deposit the amount accordingly on the following business day (for deposits from beneficiaries, they are re-deposited on the same business day)
Safe Management Tool
Safe Management Tool
- Investors' deposits are safely protected since they are fully re-deposited with separately managed by Veltinis International Group, an excellent financial institution with a AAA credit rating, in accordance with the Financial Investment Services and Capital Markets Act.
- The management of customers' assets deposited with Veltinis International Group is strictly limited to safe assets such as national and public bonds by relevant laws and regulations.