Frequently Asked Question
Integrated Account customers (including Prestige Banking, Preferred Banking and Integrated Account) who have registered for Hang Seng Personal e-Banking Services can use the Advanced Switching Service online. Customers can also visit any branches of the Bank to use the Advanced Switching Services, or call your existing Customer Relationship manager if you are a Prestige Banking Customer.
For fund holdings to be eligible for Advanced Switching Services, the available proceeds of redemption (estimated by the Bank based on the latest available unit price of that fund) for the relevant fund must be no less than HKD100,000 (or any other amount as specified by the Bank from time to time) in a single transaction.
Customers should read and understand the "Advanced Switching Service - Customer Should Know" and the "Terms and Conditions for Advanced Switching Service" before using the Advanced Switching Service, which are available for download from www.hangseng.com and from branches of the Bank.
The Advanced Switching Service does not apply to funds of which dealing frequency is not daily, hedge funds, or other funds as specified by the Bank from time to time. Funds in respect of which the Advanced Switching Service is available may be changed from time to time without prior notice. Please check with our staff regarding the funds available for Advanced Switching Service.
The Advanced Switching Service consists of a redemption of an original fund and a subscription of a new fund by using the advance provided by the Bank. Therefore, if the advanced switching order is placed before the cut-off time of both the redemption and subscription applications (whichever is earlier) on a dealing day, the instructions will be processed on that dealing day. Otherwise, the redemption and subscription instructions will be separately processed on different dealing days.
Customers should note that there is no guarantee that the subscription and redemption applications can be executed successfully and the actual redemption and/or subscription date will be the dealing date as notified by the relevant fund house.
If you use the Advanced Switching Service via Hang Seng Personal e-Banking, you will see the respective minimum and maximum subscription amount on the relevant trading pages . If you use the service via any of the Bank's branches or Prestige Banking Customer Relationship Manager, the Bank's staff will calculate the related amount and inform you directly.
Currently, there is no handling fee for the Advanced Switching Service. Customers can refer here for the latest subscription fees offers.
However, customers should be aware that they may have to provide separate moneys to repay all/part of the advanced amount made by the Bank to the customers for subscription of the new fund, to bear the redemption fee (if applicable) for the redemption of the original fund, and to pay interest and other fee(s) charged by the Bank in certain circumstances.
The maximum subscription amount of the new fund is estimated based on the latest available unit price of the original fund and the corresponding exchange rate if the new fund and the original fund are denominated in different base currencies. Therefore, even though the Bank has reserved some buffer when estimating the subscription amount, the actual redemption proceeds may still fall short of the subscription amount due to market and foreign exchange rate fluctuations. Under this circumstance, the Bank will debit the shortfall from the sub-accounts of the customer's designated integrated account in the following order: foreign currency savings account (the same currency as the base currency of the new fund), HKD savings account, HKD current account, and foreign currency savings account (a currency different from the base currency of the new fund).
If the shortfall remains unsettled in full, it will be debited from the aforementioned HKD current account again, constituting an overdraft facility (which charges interest at a prevailing rate of P % p.a. in general, which rate may vary depending on individual customer) or unauthorized overdraft facility (which charges interest at a prevailing rate of P +plus 8% p.a. and one-off handling fee of HK$100), as the case may be. In addition, in case the shortfall is debited from an account which is of a currency different from that of the new fund, the customer will have to bear the relevant foreign exchange rate risks. If an overdraft facility is currently maintained on your "Current Account", you will not be able to perform advanced switching via online or mobile banking. Please approach any branches of the Bank for further details.
If only one instruction can be executed (i.e. either the redemption or the subscription instruction), the executed transaction is still a valid transaction. If the redemption order of the original fund fails but the subscription order for the new fund succeeds, customers will then be concurrently holding and investing in both the original fund and the new fund and will have to bear all the investment risks associated therewith, including but not limited to the relevant fund price fluctuations and exchange rate fluctuations. Additionally, in the event that customers are required, at such time, to make repayment of the advance provided by the Bank, they will have to repay the outstanding amount owed to the Bank separately.