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Home » General Terms and Condition » General Terms and Conditions
General Terms and Conditions

(Revised clause 14.4 - Date of notification 01 April 2015)

  Risk Disclosure Statement
I. RISK DISCLOSURE STATEMENT FOR SECURITIES
I Unless the context otherwise requires, the words and phrases in this statement shall have the same meaning as the words and phrases in CIMB’s General Terms and Conditions.
 
This brief statement cannot and does not disclose all of the risks and other significant aspects of investing or trading in Securities. It is recommended that:
 
1. I/We seek the advice of my/our financial legal and other professional advisors concerning the risks associated
    with investing or trading in Securities.
 
2. I/We undertake trading or investing in Securities only:
(a) if I/we understand the nature of the products which I/We am/are investing or trading in and the extent of my/our
      exposure to risk; and
(b) if I/we have carefully considered whether trading or investing is appropriate for me/us in light of my experience,
      objectives, financial and other relevant circumstances.
 
The following specific points should be considered by me/us:
1. DOCUMENTATION
  To ensure that I/we clearly understand the legal relationship between CIMB and myself/ourselves, I/we should carry out a comprehensive review of CIMB’s General Terms and Conditions with my/our legal adviser.
2. SECURITIES
2.1 Investing in Securities involves market, currency, economic, political, social, business and investment risks. The price of Securities that are quoted and listed on any securities exchange (including the securities exchanges owned, operated or maintained by Bursa Malaysia Securities Berhad (“Bursa Securities”), can and will fluctuate, and any individual security may experience upward or downward movements in its price, and may even become valueless. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling Securities traded on the Bursa Securities and any other recognized stock exchanges including the loss of the entire principal amount invested.
2.2 Past performance is no guarantee of future results. Index returns shown are historical and include the change in share price, reinvestment of dividends, and capital gains. Indexes are unmanaged and do not reflect the impact of transaction costs.
2.3 Market conditions (e.g. illiquidity of a security) and/or the operation of the rules of certain markets (e.g. the delisting of Securities or the suspension of trading in Securities) and/or any request by a company to suspend trading of its shares (e.g. prior to major announcements) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate or offset my/our positions in such Securities.
2.4 Securities may also be compulsorily acquired in a take-over or pursuant to a scheme of arrangement.
3. NOMINEES SERVICES
3.1 In relation to Foreign Securities, CIMB will appoint foreign sub-agents as an intermediary to safe-keep my/our Foreign Securities or assets. I/We acknowledge that there may be additional risks in relation to such foreign sub-agents, including risks arising from the operation of foreign law, rules and regulations, and I/we agree to accept such risks.
3.2 I/We acknowledge that as a shareholder I/we am/are aware of all corporate events in regards to the Securities invested by me/us. CIMB will process the corporate event to the best of CIMB’s ability and I/we agree that I/we am/are prepared to assume the risks of delayed processing due to market condition. I/We agree to bear any and all charges incurred due to the processing of the corporate eventsin regards to the Securities invested by me/us.
4. RIGHTS ISSUE, WARRANT AND OTHER OPTIONS
4.1 Investing in rights issues, warrants and other options (each a “Right” and collectively, “Rights”) carry the following additional risks:
 
(a) the Rights are wasting assets which become worthless when they expire. I/We run the risk of losing the entire
      amount paid for the Rights in a relatively short period of time. If I/we neither sell my/our Rights in the secondary
      market nor exercise them prior to their expiration I/we may lose my/our entire investment in the Rights;
 
(b) the fact that Rights become valueless upon expiration means that I/we must not only be right about the direction
      of an anticipated price change in the underlying interest, but must also be right about when the price change will
      occur;
 
(c) the more a Right is out of the money and the shorter the remaining time to expiration, the greater the risk that
      I/we will lose all or part of my/our investment in the Right. The greater the price movement of the underlying
      Securities necessary for the Right to become profitable (that is, the more the Right is out of the money when
      purchased and the greater the cost of the Right) and the shorter the time within which this price movement must
      occur, the greater the likelihood that I/we will incur a loss;
 
(d) the exercise provisions of a Right may create certain risks for me/us. If the Right does not have an automatic
      feature, I/we must, to exercise the Right, ensure that action is taken in a timely manner. Accordingly, I/we must
      give such instructions to, and where necessary make such payments in reasonably sufficient time as may be
      required by CIMB, for CIMB to exercise or procure the execution of such instructions. I/We acknowledge that
      failing to comply with CIMB’s deadline may result in me/us loosing my/our rights. On the other hand, if the Right
      has an automatic exercise feature such as one that will cause the Right to be automatically exercised at the
      expiration if it is in the money by a specified amount the Right may be exercised at a price at which I/we would
      not voluntarily choose to exercise in view of the transactions costs of exercise or other factors. The transaction
      costs associated with the exercise could even exceed the cash settlement amount of the Right, with the result
      that I/we would incur a net loss from the exercise; and
 
(e) in the case of Foreign Securities, the exercise of Rights may be subject to any applicable foreign rules, laws or
      regulations. It is possible that a court, a stock exchange or another regulatory agency having jurisdiction would
      impose a restriction which would have the effect of restricting the exercise of a Right. In such a case the Right
      would not be exercisable until the restriction was terminated. In the remote possibility that the restriction were to
      remain in effect until the expiration of the Right, the Right would expire worthless, and I/we would lose the entire
      amount that I/we paid for the option.
5. STRUCTURED WARRANTS
5.1 I/We understand and accept the following relating to structured warrants:
 
(a) the purchaser of a structured warrant is subject to the risk of losing the full purchase price of the structured
      warrants and all transaction costs;
(b) in order to realise any value from a structured warrant, it is necessary to sell the structured warrants or exercise
      the structured warrants on or before their expiry date;
(c) under certain conditions, it may become difficult to sell the structured warrants;
(d) upon exercise of the structured warrants, the issuer may settle its obligations via actual delivery of the
      underlying assets, in cash or a combination of both depending on the terms of the issue of the structured
      warrants;
(e) the placing of contingent orders, such as “stop-loss” or “stop limit” orders, will not necessarily limit my losses to
      the intended amount.  Market conditions may not make it possible to execute such orders;
(f)  the high degree of leverage that is obtainable from structured warrants because of the small initial outlay, can
      work against me/us as well as in my/our favour. The use of the leverage can lead to large losses as well as
      gain; and
(g) this brief statement cannot disclose all risks associated with trading in structured warrants.
 
Structured warrants: means individually or collectively as the context may require, call warrants, put warrants, basket warrants, bull equity-linked structures or such other structures that may be specified by Bursa Securities from time to time.
6. OTHER RISKS
6.1 I/We should familiarise myself/ourselves with the protection accorded to any money or other property which I/we deposit for domestic and foreign transactions, particularly in the event of insolvency or bankruptcy. The extent to which I/we may recover my/our money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as my/our own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.
6.2 Before I/we begin to trade, I/we should know all commissions, fees and other charges for which I/we will be liable. These charges will affect my/our net profit (if any) or increase my/our loss.
6.3 Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose me/us to additional risks such as different or diminished investor protection. Before I/we trade, I/we should enquire about any rules relevant to my/our particular transactions. My/Our local regulatory authority will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where my/our transactions have been effected. I/We should know and understand the types of redress available in both my/our home jurisdiction and other relevant jurisdictions before I/we start to trade.
6.4 The profit or loss in transactions in foreign currency-denominated Securities (whether they are traded in my/our 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.
6.5 Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. My/Our ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or member firms. Such limits may vary. I/We should know and understand such risks before I/we start to trade.
6.6 Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If I/we undertake transactions on an electronic trading system, I/we will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that my/our order is either not executed according to my/our instructions or not executed at all.
6.7 For off-exchange transactions, it may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before I/we undertake such transactions, I/we should familiarise myself/ourselves with the applicable rules and attendant risks.
6.8 I/We acknowledge that as a shareholder I/we am/are aware of all corporate events in regards to the Securities invested by me/us. CIMB will process the corporate event to the best of CIMB’s ability and I/we agree that I/we am/are prepared to assume the risks of delayed processing due to market condition. I/We agree to bear any and all charges incurred due to the processing of the corporate eventsin regards to the Securities invested by me/us.
7. NON-ADVISORY NATURE OF RELATIONSHIP
  Unless I/we have a specific agreement with CIMB for the provision of financial advisory services I/we should note and accept that CIMB’s relationship with me/us in relation to my/our securities and securities related transactions is purely as execution broker/dealer only or as a counter party to me/us. Any answers provided by CIMB or its employees or representatives to answer my/our queries should not be assumed to be backed by any prior reasonable due diligence or research or specifically suitable for reliance by myself/ourselveswithout me/our first independently confirming that the answer is intended as specific advice to and is suitable for or to my/our specific investment objectives, financial situation and particular needs or me/us verifying the same with my/our independent advisers on its specific suitability for my/our specific investment objectives, financial situation and particular needs.
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Part D :

Part E :

Part F :

Part G :

Part H :

Part I :

Part J :

Part K :

Part L :

 



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