Terms and Conditions
You should understand that:
- a dual currency investment involves a currency option which confers on the deposit-taking institution the right to repay the principal sum at maturity in either the base or alternate currency; and
- part or all of the interest earned on this investment represents the premium on this option
By purchasing this dual currency investment you are giving the issuer of this product the right to repay you at a future date in an alternate currency that is different from the currency in which your initial investment was made, regardless of whether you wish to be repaid in this currency at that time.
The PCI may not be withdrawn, terminated or repaid prior to the agreed maturity date without our prior consent, which may be subject to such conditions as we, at our discretion, deem fit to impose. Such conditions may have the effect of reducing the expected return.
If the Bank allows for any early withdrawal, the Bank shall be entitled to deduct from the original investment amount, any loss, costs, charges and/ or expenses incurred (including but without limiting to the unwinding or termination of its hedging and/ or funding position) and such other administrative and other charges as the Bank may impose. In such instances, you may incur a loss on the principal amount upon withdrawal.
The Bank has the sole and absolute discretion to early terminate the PCI under a variety of circumstances set out in the relevant offering documents such as for extraordinary reasons, illegality, impossibility, force majeure or the occurrence of a material hedging or disruption event. For example, if the Bank’s performance under the PCI has become illegal or impractical in that it is no longer legal or practical for the Issuer to maintain its hedging arrangements under the structured product, the Bank may exercise its discretion to early terminate the structured product. In calculating the sum payable to you, the Bank will factor in the costs of terminating hedging and funding arrangements relating to the structured product. This may reduce the early termination amount payable to you and may result in the loss of all or part of your initial investment amount. Please refer to the relevant Product Documentation for more detail on what events may lead to an early termination and what payment amount you would receive in the event of an early termination by the Bank.
PCIs are also known as Dual Currency Investments. Dual currency investments are subject to foreign exchange fluctuations which may affect the return of your investment (including the payment of interest and principal amounts). Exchange controls may also be applicable to the currencies your investment is linked to. You face the risk of exchange rate fluctuations and controls (where applicable) that may (i) affect the applicable exchange rate and result in the receipt of reduced settlement amounts and/or a loss of principal when converted to your local currency and (ii) make it impossible or impracticable for the Issuer to pay you in the original settlement currency. Exchange controls or other monetary controls may be imposed by a government, sometimes with little or no warning. Such measures may have a significant effect on the convertibility or transferability of a currency and may have unexpected consequences for a PCI. You may incur a loss on your principal sum in comparison with the base amount initially invested.
The minimum amount for a PCI is SGD50,000.
PCI is available in these currencies: AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, USD and ZAR.
You may wish to seek advice from a licensed or an exempt financial adviser before making a commitment to purchase this product. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether this product is suitable for you.
This document is being distributed for general information only and it does not constitute an offer, recommendation, solicitation to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments.
This document has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice nor an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser on the suitability of an investment for you, taking into account these factors before making a commitment to invest in an investment.
The product specified here is not a deposit and does not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners' Protection Schemes Act 2011.
It is essential that prior to taking into consideration any information on this site, or responding to or sending any information or materials to us in response to this mailer, you have read and understood this Important Legal Notice.