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Know Your Investment Risk (KYIR) – Equities

(A) GENERAL RISKS OF INVESTING IN EQUITIES

Price fluctuation - You should be aware that the price and value of any investment in Equities and the income (if any) may fluctuate and may fall. An individual equity may experience downward price movements and may even become valueless under some circumstances. You should be prepared that losses may occur, rather than gains, as a result of buying and selling equities.
Suspension or Restriction of Trading - Market conditions and/or the operation of the regulations of certain markets will make it difficult or impossible to effect certain transactions or liquidate positions. In such cases, you may face a higher risk of loss.
Warrants - A warrant is a time-limited right to subscribe for Equities and is exercisable against the original issuer of the underlying equities. If you do not exercise your right within the stated period, your investment will become valueless.
Margin Trading - Not permitted. In addition, securities in your settlement account(s) may not be pledged as collateral for any loan.
Commission, Fees, Interest and Other Charges - You should be clear as to all commissions, fees, interest and charges, including charges for the custody of your shares, and understand that all these charges may affect your final net profit or loss.
Transactions in Other Jurisdictions - Before transacting in different markets, you should be aware that each market is subjected to different jurisdictions. Some markets may be subjected to rules that offer different or diminished investor protection, which may expose you to additional risks.
Foreign Exchange Risk - You should be aware that your investments can be negatively affected by foreign exchange risk if your holdings are denominated in foreign currencies.
Specified Investment Products - Please note that stocks listed on an exchange other than SGX and all exchange- traded funds are Specified Investment Products.
At Standard Chartered Bank (Singapore) Limited, we aim to provide excellent customer service. Should you require any assistance, please contact us at our 24 hour Online Trading hotline from Monday – Friday at 1800 242 5333. If you have any issue with any product that you have purchased from us, or are dissatisfied with the way in which we have handled your complaint in relation to your purchase of the product, you can approach the Financial Industry Dispute Resolution Centre ("FIDReC") for an independent review and resolution of your complaint. For more information on FIDReC, please visit their website at www.fidrec.com.sg.

(B) RISK WARNING STATEMENT
Overseas-Listed Investment Products

Risk Warning

An overseas-listed investment product* is subject to the laws and regulations of the jurisdiction it is listed in. Before you trade in an overseas listed investment product or authorise someone else trade for you, you should be aware of:
The level of investor protection and safeguards that you are afforded in the relevant foreign jurisdiction, as the overseas-listed investment product would operate under a different regulatory regime.
The differences between the legal systems in the foreign jurisdiction and Singapore that may affect your ability to recover your funds.
The tax implications, currency risks, and additional transaction costs that you may have to incur.
The counterparty and correspondent broker risks that you are exposed to.
The political, economic and social developments that influence the overseas markets you are investing in.

These and other risks may affect the value of your investment. You should not invest in the product if you do not understand or are not comfortable with such risks.

*An "overseas-listed investment product" in this statement refers to a capital markets product that is listed for quotation or quoted only on overseas securities exchange(s) or overseas futures exchange(s) (collectively referred to as " overseas exhanges").
1 This statement is provided to you in accordance with paragraph 29D of the Notice on the Sale of Investment Products [SFA04-N12].
 
2 This statement does not disclose all the risks and other significant aspects of trading in an overseas-listed investment product. You should undertake such transactions only if you understand and are comfortable with the extent of your exposure to the risks.
 
3 You should carefully consider whether such trading is suitable for you in light of your experience, objectives, risk appetite, financial resources and other relevant circumstances. In considering whether to trade or to authorise someone else to trade for you, you should be aware of the following:
Differences in Regulatory Regimes
(a) Overseas markets may be subject to different regulations, and may operate differently from approved exchanges in Singapore. For example, there may be different rules providing for the safekeeping of securities and monies held by custodian banks or depositories. This may affect the level of safeguards in place to ensure proper segregation and safekeeping of your investment products or monies held overseas. There is also the risk of your investment products or monies not being protected if the custodian has credit problems or fails. Overseas markets may also have different periods for clearing and settling transactions. These may affect the information available to you regarding transaction prices and the time you have to settle your trade on such overseas markets.
(b) Overseas markets may be subject to rules which may offer different investor protection as compared to Singapore. Before you start to trade, you should be fully aware of the types of redress available to you in Singapore and other relevant jurisdictions, if any.
(c) Overseas-listed investment products may not be subject to the same disclosure standards that apply to investment products listed for quotation or quoted on an approved exchange in Singapore. Where disclosure is made, differences in accounting, auditing and financial reporting standards may also affect the quality and comparability of information provided. It may also be more difficult to locate up-to-date information, and the information published may only be available in a foreign language.
Differences in legal systems
(d) In some countries, legal concepts which are practiced in mature legal systems may not be in place or may have yet to be tested in courts. This would make it more difficult to predict with a degree of certainty the outcome of judicial proceedings or even the quantum of damages which may be awarded following a successful claim.
(e) The Monetary Authority of Singapore will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions will be effected.
(f) The laws of some jurisdictions may prohibit or restrict the repatriation of funds from such jurisdictions including capital, divestment proceeds, profits, dividends and interest arising from investment in such countries. Therefore, there is no guarantee that the funds you have invested and the funds arising from your investment will be capable of being remitted.
(g) Some jurisdictions may also restrict the amount or type of investment products that foreign investors may purchase. This can affect the liquidity and prices of the overseas-listed investment products that you invest in.
Different costs involved
(h) There may be tax implications of investing in an overseas-listed investment product. For example, sale proceeds or the receipt of any dividends and other income may be subject to tax levies, duties or charges in the foreign country, in Singapore, or in both countries.
(i) Your investment return on foreign currency-denominated investment products will be affected by exchange rate fluctuations where there is a need to convert from the currency of denomination of the investment products to another currency, or may be affected by exchange controls.
(j) You may have to pay additional costs such as fees and broker's commissions for transactions in overseas exchanges. In some jurisdictions, you may also have to pay a premium to trade certain listed investment products. Therefore, before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
Counterparty and correspondent broker risks
(k) Transactions on overseas exchanges or overseas markets are generally effected by your Singapore broker through the use of foreign brokers who have trading and/or clearing rights on those exchanges. All transactions that are executed upon your instructions with such counterparties and correspondent brokers are dependent on their respective due performance of their obligations. The insolvency or default of such counterparties and correspondent brokers may lead to positions being liquidated or closed out without your consent and/or may result in difficulties in recovering your money and assets held overseas.
Political, Economic and Social Developments
(l) Overseas markets are influenced by the political, economic and social developments in the foreign jurisdiction, which may be uncertain and may increase the risk of investing in overseas-listed investment products.