Service Details
What is Surplus Cash Facility?
“Surplus Cash Facility” is a cash management service. It allows your excess funds to work harder for you while you wait for your next investment. The idle HK dollar funds in your securities account will automatically be transferred to “Phillip Hong Kong Dollar Money Market Fund*” in search of extra returns.。
This service automatically redeems fund needed for trade settlement, cash withdrawal and transfer, fees payment in Hong Kong Dollar under the securities account.
What kinds of clients are best suited to use the “Surplus Cash Facility” service?
This service suits clients who hold idle funds in their cash or margin accounts and look for high liquidity and low risk.
What are the service charges for “Surplus Cash Facility”?
“Surplus Cash Facility” is free of charge. There’s no commission or service fee.
Does the "Surplus Cash Facility" service offer guaranteed return?
Income of the Hong Kong Dollar Money Market Fund is not guaranteed, “Surplus Cash Facility” is not equivalent to bank deposits. Investor should read the fund fact sheet and related documents in order to understand the underlying risk.
Service Application
How to apply for the "Surplus Cash Facility"?
You need to:
1. Open a securities account with Phillip Securities (HK) Ltd
2. Apply for the E-statement service
3. Complete a Risk Profile Questionnaire
4. Sign the “Surplus Cash Facility” Application Form and Client Standing Authority on Facility Form.
After submitting the application, how long does it take to activate the service?
“Surplus Cash Facility” service will be activated in two business days after the related documents are well received.
If clients under joint account wish to apply for the Surplus Cash Facility service, is it acceptable only one of the account holders signs the “Surplus Cash Facility” application form and the Client Standing Authority form?
No, all joint-account holders must sign the applicable forms.
Can authorized person sign the "Surplus Cash Facility" Application Forms for the clients?
No.
Can CIES clients apply for “Surplus Cash Facility” service?
No, because the Phillip Hong Kong Dollar Money Market Fund is not included in the List of Eligible Collective Investment Schemes under CIES.
If a CIES client holds an account outside of the CIES program, is that account eligible for the application of “Surplus Cash Facility” service?
Yes.
How to terminate the service?
Clients can terminate the service by completing the “Account Particulars Amendment Form” and notifying us.
Fund Transfer
Is there a minimum transfer amount for “Surplus Cash Facility” service?
Yes. When the idle HK dollar fund in securities account is HKD2,000 or above, all but HKD500 of the surplus funds will be transferred to the Phillip HKD Money Market Fund.
If there is a balance due in the account, can “Surplus Cash Facility” transfer funds?
When the securities account has any HKD balance due, “Surplus Cash Facility” will automatically transfer funds for such payments.
If there is a balance due in foreign currency or in accounts other than the Hong Kong securities account, clients can notify their sales representatives to transfer funds for such payments.
For more information, please refer to FAQ: "If clients need to transfer funds through “Surplus Cash Facilities” to “Futures” / “Stock Options” / “Forex” / “Bullion” accounts for transactions on the same day, when should clients inform Phillip of such transfer instruction?"
Why does “Surplus Cash Facility” service transfer more funds than the amount needed for payments or transfer?
Any transaction, payments or transfer occurred in HK Securities Account would debit the cash balance in the account first. If the cash balance is not sufficient to settle the amount, "Surplus Cash Facility" will automatically transfer fund to the HK Securities Account. Also, when “Surplus Cash Facility” transfers funds for transactions, payments or transfer, it will transfer an additional HKD500 (it will transfer the whole amount if the balance is less than HKD500) to ensure that the securities account reserves sufficient cash.
Please refer the following table：
| Examples | HK Securities Account Balance before Settlement/Payment | Settlement/Payment Amount | Debit Balance in HK Securities Account | “Surplus Cash Facility” related fund’s balance | “Surplus Cash Facility” transfer amount (Account Debit Balance+Reserve Cash) |
HK Securities Account Balance after Settlement/Payment |
| 1 | HK$ 500 | HK$ 1000 | HK$ 500 | HK$ 1000 | HK$ 1000 (HK$ 500+HK$500) |
HK$ 500 |
| 2 | HK$ 200 | HK$ 1000 | HK$ 800 | HK$ 2000 | HK$ 1300 (HK$ 800+HK$500) |
HK$ 500 |
| 3 | HK$ 1500 | HK$ 2000 | HK$ 500 | HK$ 800 | HK$ 800 (HK$ 500+HK$300) |
HK$ 300 |
| Examples | HK Securities Account Balance before Settlement/Payment | Settlement/Payment Amount | Debit Balance in HK Securities Account | “Surplus Cash Facility” related fund’s balance | “Surplus Cash Facility” transfer amount (Account Debit Balance+Reserve Cash) |
HK Securities Account Balance after Settlement/Payment |
| 4 | HK$ 500 | HK$ 400 | HK$0 | HK$1000 | HK$ 0 | HK$ 100 |
When is the instruction deadline to withdraw cash on the same day through “Surplus Cash Facility”?
Withdrawal request have to be successfully submitted to sales representatives or POEMS before 09:20 (per our system time) on a transaction date.
Does “Surplus Cash Facility” have a maximum transfer amount?
Can clients set a maximum transfer amount limit on “Surplus Cash Facility”?
No. When the idle HK dollar fund in securities account is HKD2,000 or above, all but HKD500 of the surplus funds will be transferred to the Phillip HKD Money Market Fund.
If clients need to transfer funds through “Surplus Cash Facilities” to “Futures” / “Stock Options” / “Forex” / “Bullion” accounts for transactions on the same day, when should clients inform Phillip of such transfer instruction?
Clients should inform their sales representative before 9:20 (per our system time) of such transfer instruction for it to be completed on the same day.
What is the impact if transfer instructions are given after 09:20?
For transfer instructions submitted between 09:20 – 15:20, Phillip will first debit the amount from HK securities account and redeem the fund units on the next trading day. Interests may be incurred for at least one overnight. Please refer to the below table for further details:
| Transfer Instruction Time | Complete transfer from HK Securities Account | Will interest incur in HK Securities Account? |
| 00:00 - 09:20 | Same Day | No |
| 09:21 – 15:30 | Same Day | Yes, at least interest for one overnight |
| 15:31 - 23:59 | Next Trading Day | No |
How do I check “Surplus Cash Facility” related fund’s balance?
Clients can check their balance on their e-statement.
In addition, clients can enquire about balance of last trading day via "Position>>Balance BF" under POEMS and "Position>>Previous Balance" under SATS platforms.
Product Transactions
Will clients’ purchasing power be affected after clients’ surplus cash has been transferred to the Fund?
No. Clients of Phillip HKD Money Market Fund will have the same purchasing power as if they are holding the same amount in cash.
Will “Surplus Cash Facility” service transfer funds to settle transactions of foreign stocks?
Yes, provided that the clients selected HKD as the settlement currency of such transactions.
Will “Surplus Cash Facility” automatically transfer fund to “Futures” / “Stock Options” / “Forex” / “Bullion” accounts?
No. Clients must inform their sales representatives for transfer request to these accounts.
IPO Subscription
If clients apply for IPO in cash, will the application be rejected due to insufficient balance in the securities account given surplus cash in the account has been transferred to the fund through “Surplus Cash Facility”?
No. If clients apply for IPO in cash, “Surplus Cash Facility” will automatically redeem fund units to settle the application amount on payment date.
If clients apply IPO on margin, will the application be rejected due to insufficient balance in the securities account given surplus cash in the account has been transferred to the fund through “Surplus Cash Facility”?
No. If clients apply IPO on margin, “Surplus Cash Facility” will automatically redeem fund units to settle the margin amount on payment date.
After announcement of the IPO allotment result, will “Surplus Cash Facility” automatically transfer funds to settle the outstanding amount if the application is made on margin?
Yes. We will redeem fund units according to the maximum allocation amount of shares published by HKEX to ensure there are sufficient funds transferred to clients’ accounts for settlement.
