1.
The Client Acknowledges
1.1
The Client has appointed TBNZ as the Client’s agent for the purpose of
trading in securities in accordance with the terms of this Client
Acknowledgement and Risk Disclosure Statement and the terms of the Client
Services Agreement.
2.
Risk Disclosure Statement
2.1
All investment involves risk, which in a financial context can be
defined as the uncertainty of return and the possibility of sustaining a loss
or reduction in value. Consequently, there is a risk of loss in trading in
securities. The Client should therefore carefully consider whether that kind of
trading is appropriate for them in the light of their financial circumstances.
In deciding whether or not they will become involved in trading in securities,
the Client should be aware of the following matters:
(a)
the price, value and income derived from investments can vary. Values
can go up or down, depending upon price fluctuations and multifarious market
influencers. Therefore it is possible that an investor may receive back less
than their initial investment
(b)
Liquidity of securities may also fluctuate, resulting in situation where
an investor may not be able to buy or sell the security when the investor wants
to or for their preferred price if the turnover volume were to drop. Under
certain conditions, it could become difficult or impossible for the Client to
liquidate a position (this can, for example, happen when there is a significant
change in prices over a short period);
(c)
If an investment in a financial instrument is carried out in a foreign
currency, the return or performance of this transaction depends heavily on the
development of the exchange rate of the foreign currency in relation to the
base currency of the investor (e.g. Swiss franc). Sinking exchange rates lead
to a diminishment in the value of the foreign currency investment. Investors
only investing in their own country’s currency can exclude this risk.
(d)
The provision of information (for example the cost or terms and
conditions of a financial product) or making a recommendation or giving an
opinion relating to a class of financial products, or explaining the procedure
for acquiring or disposing of a financial product – none of these examples
constitute the giving of financial advice. Financial advice which does not take
into consideration an individual investor’s particular financial situation or
goals does not constitute a personalized service in terms of section 15 of the
Financial Advisers Act 2008. Clients should refer to their preferred qualified
financial advisor before making any investment decisions and should make
themselves aware of the risks which the type of investment under their
consideration carry.
This statement does not disclose all of the
risks and other significant aspects involved in trading in securities. The
Client should therefore study trading in securities and take advice relevant to
their trading experience and ambition before becoming involved.