Within HSBC Private Bank France, our specialists from the Investment Advisory Group offer you advice before, during and after the exercise of your stock options, and provide you with a tailored-made solution, taking into account your personal assets position, by instituting/designing a comprehensive and innovative financial scheme.

Exercising your stock options requires financing the acquisition of the underlying stocks at the strike price defined/set by the stock option scheme. The owner of the options then becomes a shareholder.
 
HSBC Private Bank France can study together with the client on his personal situation to find suitable financing solutions (authorized overdraft, redeemable loan, interest-only loan) should he/she does not have the required funds available. Moreover, for tax optimization, it may also be more efficient to borrow funds to purchase the securities.

In line with the current tax legislation, a donation to a spouse and/or descendents can be tied in with the exercise of the stock options.
 
This can be a simple donation or a "donation subject to conditions or obligations", whereby not only the shares are transferred but also the portion of the finance facility used to purchase the shares.
 
The beneficiary is then responsible for paying off the loan and keeps the net capital gain (market value less the cost of financing the acquisition).