Investors suffering losses due to defaults by licensed or registered intermediaries, securities margin financiers and banks can claim up to $150,000 through the Investor Compensation Fund Company.

In its latest Dr Wise column published today, the Securities & Futures Commission described "default" as meaning any situation in which an intermediary, its employee or its associated person is in bankruptcy, wound up or insolvent or has committed breach of trust, defalcation, fraud or misfeasance.

The maximum claim is capped at $150,000 for both securities and futures products traded on the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange. Both margin clients and cash clients are entitled to compensation if their intermediaries default.

The commission said investors lodging claims need documents such as the client agreement, their latest account statements, contract notes, proof of payment, and deposit receipts for securities. The more evidence a claimant can provide, the easier it will be to deal with the claim.

Click here to know more about investor compensation in Hong Kong.