Bison bank stipulations and concerns

Fairly normal stuff.

Stock loan is common with brokerage accounts as a way to raise money. It’s only going to apply for publicly traded stocks where there is a secondary market to lend into. It won’t apply to these kinds of depository shares.

The intermediary is probably Bison Securities Ltd. Which could go bankrupt. But frankly again for these kinds of shares, the risk is probably quite low. In a typical brokerage account, shares are held in street-name, e.g. they’re bought and sold on your behalf but fundamentally they’re still on the books of the broker; it’s not as if there’s some stock certificate sitting around with your name on it. In the case of these funds, there is - you signed documents with the fund, the fund has registered shares to your name. They’re sitting in an account at Bison, but that’s more of an accounting/legal thing than anything - I bet if you were Portuguese, you wouldn’t need Bison, just as if you’re a US investor buying into a US hedge fund, you simply wire money straight to the fund, you don’t need your shares registered on the books of some bank or brokerage. So if Bison did go bankrupt, any creditor would be damn hard-pressed to come after your fund shares as any sort of common asset.

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