Risks Disclosure Statement

Risk of Investment

The prices of investment fluctuate, sometimes dramatically. The price of an investment may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling investments.

In certain circumstances, the Accountholder's right to redeem or sell or otherwise dispose of an investment may be restricted or the Accountholder's ability to do so may be limited, inhibited or restricted in certain manner.

(Where past performance is quoted) the past performance figures shown are not indicative of future performance.

Risk of Debt Instruments

Market Risks

The return of an investment product may be affected by (or linked to) market factors such as interest rates or currency exchange rates. Movements in such factors can be unpredictable, sudden and drastic, and affected by complex political and economic factors.

Country Risks

Political changes such as nationalization or government intervention in emerging markets countries may affect the capital markets more profoundly than in industrialized countries. Foreign exchange regulations may impose restrictions on the exchange and transfer of invested funds. Independent supervision of business practices, stock market dealings and issuers may not be as developed as mature markets. Insufficient transparency may result in market-distorting influences. Natural disasters or armed conflicts can occur anywhere. Not all countries have a mature legal system with transparent standards and precedents. The influences of a high interest rate or inflation rate can have much more serious consequences for economic development than in mature markets. Currency fluctuations may be sudden and extreme, producing a disproportionate impact on the value of investments.

Interest Rate Risks

Movements in interest rates can be affected by complex political and economic factors and can be unexpected, sudden and drastic. Bonds are more susceptible to fluctuations in interest rates and generally prices of bonds will fall when interest rates rise.

Credit Risks

An investment product may not be secured by any collateral and may be subject to the credit and insolvency risks of the issuer or another counterparty. Credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer or the counterparty. If the issuer or the counterparty becomes insolvent or defaults on its obligations under the product, the Accountholder could, in the worst case, suffer a total loss of the Accountholder's investment.

Currency Risks

The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in the Accountholder's own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

Liquidity Risks

An investment product may be designed to be held till maturity. The Accountholder may not have a right to request early termination of the product before maturity. The issuer may at its absolute discretion refuse to consent to any withdrawal request before maturity. Some products may not have active secondary markets and it would be difficult or impossible for the Accountholder to sell the product before its maturity.