A Premium Currency Investment (“PCI”) 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 PCI 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The PCI may not be withdrawn, terminated or repaid prior to the agreed maturity date without our prior consent, which may be subject to such conditions as the Issuer, at its discretion, deem fit to impose. Such conditions may have the effect of reducing the expected return.
If the Issuer allows for any early withdrawal, the Issuer 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 Issuer may impose. In such instances, you may incur a loss on the principal amount upon withdrawal.
The Issuer 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 Issuer’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 Issuer may exercise its discretion to early terminate the structured product. In calculating the sum payable to you, the Issuer 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 Issuer.
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.
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.