Risk Disclosure

Market risk

Prices of securities fluctuate, sometimes sharply and without warning, in response to economic conditions, company performance, policy changes, global events and sentiment. The value of your investment can fall below what you paid, and you may not recover the amount invested.

No assurance of returns

No return is assured on any market-linked investment. Historical performance describes the past and is not a guide to the future. Any projection shown on this website is an arithmetical illustration of an assumption you selected, not a forecast.

Derivatives and leverage

Futures and options are leveraged instruments traded against a margin. A small adverse move in the underlying can cause a loss that is large relative to the margin placed, and losses can exceed the amount deposited.

Margin requirements are set by the exchange and can change intraday. If margins fall short, positions may be squared off without further reference to you, at prices that may be unfavourable.

The equity derivatives segment is not suitable for most individual investors. The regulator has published studies on the outcomes of individual traders in this segment; read them before participating.

Other risks

Depending on what you hold, you may also be exposed to:

• Credit risk - a bond issuer or counterparty fails to meet its obligations. A credit rating is an opinion, not a guarantee.
• Liquidity risk - you cannot buy or sell at a fair price, or at all, when you want to.
• Concentration risk - too much of your outcome depends on a single company, sector or theme.
• Interest-rate risk - bond prices move inversely to interest rates.
• Currency risk - where an investment is exposed to exchange-rate movements.
• Inflation risk - nominal returns fail to keep pace with the rising cost of living.
• Operational and technology risk - system outages, connectivity failures or errors can prevent or delay a transaction.

IPO-specific risks

Allotment in an oversubscribed public issue is not guaranteed. A stock may list below its issue price, and there is no assurance of any listing gain. The risk factors in the offer document are the most important part of it - read them.

Suitability

Only invest money you can afford to leave invested for the intended period, and only in products you understand. Consider your objectives, time horizon and ability to absorb a loss before you begin, and seek independent professional advice where appropriate.

Statutory risk disclosure

[REQUIRES REVIEW] The mandatory risk disclosure document and any prescribed statutory wording required of a broker or authorised partner must be reproduced here verbatim by SNNB Fintech LLP’s compliance reviewer. No prescribed wording has been paraphrased or invented on this page.

This section requires review and completion by SNNB Fintech LLP’s legal and compliance adviser before publication.