Is My Capital Safe with Follow SMART?
Fund security is ensured through a multi‑layered protection framework. To safeguard your investment capital, Follow SMART has established comprehensive safety mechanisms covering regulatory compliance, asset custody, and risk control. Detailed information is provided below:
- Investor Compensation Scheme (ICC) Protection Mechanism
- Regulatory Compliance:
Follow SMART is regulated under a Type 9 License (Asset Management) issued by the Hong Kong Securities and Futures Commission (SFC) and fully complies with Hong Kong financial regulatory standards.
- Asset Custody:
Your investment capital is not held directly by Follow SMART. Instead, it is held in custody at all times by the licensed brokerage uSMART Securities (holder of SFC Type 1, 4, 6, and 9 licenses).
uSMART opens a separate, dedicated, and verified account in your name, with independent asset custody administered by authorized banks.
- ICC Compensation Coverage:
Under the Hong Kong Investor Compensation Corporation (ICC) mechanism, eligible securities assets traded on the Hong Kong Stock Exchange held in your account are covered (excluding OTC products).
Each investor is entitled to compensation up to a maximum of HKD 500,000 (final amounts are subject to the latest announcements from the ICC).
- Prevention of Misappropriation and Investor Protection
Follow SMART employs multiple safeguards to prevent unauthorized use or misappropriation of funds:
- Asset Segregation and Beneficial Ownershipa.
- Your funds are held in a dedicated account opened under your name with uSMART Securities.
- This account is completely segregated from the assets of the platform and investment managers.
- Legally, full ownership of assets remains with you at all times.
- Strictly Defined Authorization Scopea.
- Investment managers may only operate within the scope of authority granted by you (i.e., the investment strategy defined in the agreement).
- They have no authority to transfer, withdraw, or divert funds for any purpose unrelated to investment activities.
- This structure eliminates the risk of misappropriation through institutional design.
iii. Internal Risk Control and Continuous Monitoringa.
- Follow SMART maintains an Internal Asset Risk Control Committee.
- The committee regularly reviews investment holdings and transaction records executed by managers.
- It ensures all activities remain consistent with the defined investment strategy and regulatory requirements.
Summary
Your investment capital within the Follow SMART ecosystem is protected by multiple layers of security:
- Compliance assurance under the regulation of the Hong Kong SFC
- Bank‑grade independent asset custody
- ICC Investor Compensation Fund coverage for HKEX‑traded assets (up to HKD 500,000)
- Multi‑level risk control and authorization restriction mechanisms
These measures form a robust protective framework for investor capital, allowing you to invest with confidence.
