Risk Disclosure

PHILLIP NOVA PTE LTD – RISK DISCLOSURE STATEMENT (ONLINE)

This statement does not disclose all of the risks and other significant aspects of trading in capital markets products (including but not limited to in futures, options, over-the-counter derivatives contracts where the underlying is a currency or currency index (“OTCD currency contracts”) and spot foreign exchange contracts for the purposes of leveraged foreign exchange trading (“Spot LFX trading contracts”)). In light of the risks, the Customer should undertake such transactions only when understanding the nature of securities, derivatives, and the contracts (and contractual relationship) which the Customer is entering into and the extent of the Customer’s exposure to risk. The Customer should carefully consider whether trading in capital markets products is appropriate in the light of own experience, objectives, financial resources, and other relevant circumstances. If in any doubt, the Customer should seek professional advice. Different capital markets products involve different levels of risk and in considering whether to trade or invest in capital markets products, the Customer should be aware of the following points:

1) Terms and Conditions of Trading / Investing in Capital Markets Products

The Customer should read and understand the terms and conditions spelt out (and from time to time amended) in the Customer Trading Agreement, this Agreement, Application Forms, all of which are referred to and construed as part of the agreement between Phillip Nova Pte. Ltd. (“Phillip Nova”) and Customers.

2) Joint Account

Each joint account holder is jointly and severally liable for all debts incurred in a joint account. A joint account may be operated by not more than 2 individuals.

3) Risks associated with Trading / Investing in Capital Markets Products

(i) Price fluctuation

The price and value of any investment in capital markets products and the income, if any, from them, can fluctuate and may fall against the Customer’s interest. An individual security may experience downward price movements and may under some circumstances even become valueless. An inherent risk of trading/investing in capital markets products is that losses may be incurred, rather than profits made, as a result of buying and selling such products.
(ii) Suspension or Restriction of Trading

Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any security because of price limits or trading halts) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.
(iii) Warrants

A warrant is a time-limited right to subscribe for securities and is exercisable against the original issuer of the underlying securities. A relatively small movement in the price of the underlying security results in a disproportionately large movement, favourable or unfavourable, in the price of the warrant. The prices of warrants can therefore be volatile. It is essential for anyone who is considering purchasing warrants to understand that the right to subscribe which a warrant confers is invariably limited in time with the consequence that if the investor fail to exercise this right within the predetermined time-scale then the investment becomes worthless.
(iv) Securities-Based Derivatives (eg. structured warrants, contracts for differences)

These instruments may give the Customer a time-limited or absolute right to acquire or sell one or more types of investments which is normally exercisable against someone other than the issuer of that investment. Or they may give the Customer rights under a contract for differences (CFD) which allow for speculation on fluctuations in the value of the underlying capital markets product. The Customer should be aware of the credit, liquidity and market risks associated with these instruments. CFDs carry a high degree of risk as they often involve gearing or leverage, so that a relatively small movement in the price of the underlying investment results in a much larger movement, favourable or unfavourable, in the price of the instrument. The price of these instruments can therefore be volatile. These instruments have a limited life, and may expire worthless if the underlying instrument does not perform as expected.
(v) Equity-linked investments

These are structured products based on underlying listed securities that offer the potential for high returns but also involve substantial risks including market, liquidity and credit risks. These investments are intended to be held to maturity and are generally for investors who expect the price of the reference security to be stable or moderately bullish in the near future. The principal investment sum and interest are not guaranteed and investors may suffer a capital loss, if the reference security price is below the strike price on determination date, as investors will receive the reference security instead of cash. In providing prices for equity-linked investments, Phillip Nova will enter into the transaction with the customer as principal, unless otherwise stated. Any transaction entered into by the Customer with Phillip Nova could result in a loss to the Customer and a gain to Phillip Nova.
(vi) Debt Securities

Debt Securities and Debt-linked investments offer fixed returns over a defined period and are intended to be held to maturity. These instruments carry a significant amount of risk such as credit, currency and liquidity risks. Credit risk arises from default events that may result in the inability of the issuer to pay interest or principal. Default risk is high when credit rating is non-investment grade or non-rated. In a default situation, the buyer may lose both interest and principal. Currency risk arises from holding Debt Securities that are issued in foreign currency, hence exposing the buyer to fluctuations in exchange rate. There is a high chance that if the currency moves adversely, the buyer may lose more than his original interest and principal. Liquidity risk refers to the availability of prices for buying or selling into a market. It is common for most Debt Securities to suffer from poor liquidity because they are quoted over-the-counter (OTC).
(vii) Over-the-counter (OTC) Products

OTC products are not listed or available on an officially recognised securities exchange, but traded directly between two parties (buyer and seller) on a principal basis, unless otherwise stated. As a result, an OTC transaction is individually negotiated between two parties and the Customer is thus exposed to credit risk of the counterparty in which they enter into bilateral agreement with. In addition, the Customer may be exposed to liquidity risk and Phillip Nova cannot and does not warrant that there is an active trading market and the price Phillip Nova secures for the Customer will at any time be the best price available to the Customer. In entering into an OTC transaction with the Customer, Phillip Nova may make a profit despite the Customer incurring a loss. The Customer should consider carefully whether each OTC product is suitable in light of the Customer’s investment experience, objective, financial position, risk propensity and other relevant considerations. The Customer should therefore ensure that they understand the risks associated with OTC products and transactions and seek independent advice, if necessary before making a decision to invest in any of the OTC products.
Where Phillip Nova re-sells an obligation of an Issuer or Third Party, the Customer accepts that Phillip Nova is not obliged to settle the underlying obligation of such Issuer or Third Party and the liability of non-payment by the Issuer or Third party is to be borne by the Customer and that such a transaction shall be deemed settled upon the Customer’s payment for the same.

4) Risk of Margin trading (e.g. share margin financing, contracts for differences)

The risk of loss in financing a transaction by deposit of collateral may be significant. The Customer may sustain losses in excess of the Customer’s cash and any other assets deposited as collateral with Phillip Nova. The Customer may be called upon at short notice to make additional margin deposits or interest payments. If required margin deposit or interest payment is not made within the prescribed time, the Customer’s collateral or positions may be liquidated by Phillip Nova at a loss without prior notification to the Customer. The Customer should therefore carefully consider whether such a financing arrangement is suitable in light of the Customer’s own financial position and investment objectives.

5) Assets Received or Held Outside Singapore

The assets of Customer received or held by the licensed person or registered outside Singapore are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from laws of Singapore. Consequently, such assets may not enjoy the same protection as that conferred on client assets received or held in Singapore.

6) Commission, Fees, Interest and Other Charges

The Customer should obtain a clear explanation of all commissions, fees, interest and charges, including charges for the custody of the Customer’s investments, and understand that these charges may affect the Customer’s net profit (if any) or increase the Customer’s loss. The Customer agrees to be liable for these charges (as may be amended from time to time).

7) Transactions in Other Jurisdictions

Transactions on markets in other jurisdictions, including markets formally linked to the Singapore market, may expose the Customer to additional risks. Such markets may be subjected to rules that may offer different or diminished investor protection. Before entering into such trades, the Customer should be aware of the rules relevant to the particular transactions. Our local regulatory authority may be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where the Customer’s transactions have been effected.

8) Currency Risks

The potential for profit or loss from transactions on foreign markets or in foreign currency-denominated securities (traded locally or in other jurisdictions) will be affected by fluctuations in foreign exchange rates.

9) Trading Facilities and Electronic Trading

Phillip Nova’s 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 computer systems, customers will be exposed to risks associated with the systems including the failure of hardware and software. The result of any system failure may be that the Customer’s order is either not executed according to instructions or is not executed at all. The Customer should also be aware that the Internet is not a completely reliable transmission medium and there may be delays in service provisions.

10) Mobile Broking

If the Customer’s trading representative is, or becomes, a member of Phillip Nova’s team of mobile trading representatives, he/she will be operating from outside Phillip Nova office premises. The Customer’s trade orders will be channeled through Phillip Nova proprietary online electronic broking system for execution. As with any transaction carried out over telecommunications networks, the Customer should be aware that there is the risk of possible delay in trade processing or outages. It is in the Customer’s own interest not to provide a ‘care-of’ or ‘PO Box’ address as a mailing address for contract notes and statements of account to be sent to. The Customer is also advised to place trade orders only with the trading representative concerned. Complaints, if any, should be directed to Phillip Nova.

11) Risk of Short Selling

When the Customer short sell a stock, Phillip Nova must borrow such stock on the Customer’s behalf to effect delivery of such stock to the purchaser, if the lender subsequently issues a re-call notice for such stock, Phillip Nova will attempt to re-borrow the stock on behalf of the Customer. The Customer understand and agree that if Phillip Nova is unable to re-borrow such stock, Phillip Nova, without notice to the Customer, is authorised by the Customer to cover the short position by purchasing such stock on the open market at the then-current market price and the Customer shall be liable for any resulting losses and all associated costs incurred.

12) Deposited Cash and Property

The Customer should be familiarised with the protection accorded to any money or other property which the Customer deposit for domestic and foreign transactions, particularly in a firm’s insolvency or bankruptcy. The extent to which the Customer may recover the money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as its own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

13) Non-Advisory Nature of Relationship

Unless the Customer has a specific agreement with Phillip Nova for the provision of advisory services or fund management services, the Customer should note and accept that Phillip Nova’s relationship with the Customer in relation to the Customer’s transactions in capital markets products is purely as an execution-only broker / dealer or as a counterparty to the Customer. In either case, while the Customer is entitled to expect Phillip Nova or its Officer to answer the Customer’s queries, the obligation in so answering is only to be honest. Such answers should not be assumed to be backed by any prior reasonable due diligence or research or specifically suitable for reliance by the Customer without the Customer first independently confirming that the answer is intended as specific advice to and is suitable for or to the Customer’s specific financial needs and objectives or the Customer verifying the same with the Customer’s independent advisers on its specific suitability for the Customer’s specific financial needs and objectives.

14) Additional Risk Disclosure Statement for Futures Contracts/ Options Trading

The Customer should undertake transactions in futures/ options only when understanding the nature of the contracts (and contractual relationships) into which the Customer is entering and the extent of own exposure to the risks. Trading in futures/ options may not be suitable for everyone. The Customer should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources and other relevant circumstances. In considering whether to trade, the Customer should be aware of the following, in addition to the risk factors disclosed above:

(14a) Futures, OTCD currency contracts and Spot LFX trading contracts

(i) Effect of ‘Leverage’ or ‘Gearing’

Transactions in futures, OTCD currency contracts and Spot LFX trading contracts carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, OTCD currency contract or Spot LFX trading contract transaction so that the transaction is highly ‘leveraged’ or ‘geared’. A relatively small market movement will have a proportionately larger impact on the funds deposited or will have to deposit by the Customer; this may work against or for the Customer. The Customer may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain the position. If the market moves against the position or margin levels are increased, the Customer may be called upon to pay substantial additional funds on short notice in order to maintain the position. If the Customer fail to comply with a request for additional funds within the specified time, the position may be liquidated at a loss and the Customer will be liable for any resulting deficit in the account.
(ii) Risk-Reducing Orders or Strategies

The placing of certain orders (e.g. ‘stop-loss’ orders, where permitted under local law, or ‘stop-limit’ orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions.

(14b) Options

(i) Variable Degree of Risk

Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (i.e. put or call) which the Customer contemplate trading and the associated risks. The Customer should calculate the extent to which the value of the options would have to increase for the position to become profitable, taking into account the premium paid and all transaction costs.
The purchaser of options may offset its position by trading in the market or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futures contract, OTCD currency contract or Spot LFX trading contract, the purchaser will have to acquire a position in the futures contract, OTCD currency contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTCD currency contracts and Spot LFX trading contracts above). If the purchased options expire worthless, the Customer will suffer a total loss of the investment which will consist of the option premium paid plus transaction costs. If the Customer is contemplating purchasing deep-out-of-the-money options, the Customer should be aware that, ordinarily, the chance of such options becoming profitable is remote.
Selling (‘writing’ or ‘granting’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of the amount of premium received. The seller will be liable to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract, OTCD currency contract or spot LFX trading contract, the seller will acquire a position in the futures contract, OTCD currency contract or spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTCD currency contracts and Spot LFX trading contracts above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTCD currency contract, spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.
Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

(14c) Additional Risks Common to Futures, Options and Leveraged Foreign Exchange Trading

(i) Terms and Conditions of Contracts

The Customer should ask for the terms and conditions of the specific futures contract, option, OTCD currency contract or spot LFX trading contract which the Customer is trading and the associated obligations (e.g. the circumstances under which the Customer may become obligated to make or take delivery of the underlying interest of a futures contract, OTCD currency contract or spot LFX trading contract transaction and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances, the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.
(ii) Suspension or Restriction of Trading and Pricing Relationships

Market conditions (e.g. illiquidity) or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or ‘circuit breakers’) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Customer have sold options, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the futures contract, and the underlying interest and the option may not exist. This can occur when, e.g., the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge ‘fair’ value.
(iii) Deposited Cash and Property

The Customer should familiarise with the protection accorded to any money or other property which the Customer deposit for domestic and foreign transactions, particularly in a firm’s insolvency or bankruptcy. The extent to which the Customer may recover such money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as the Customer’s own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

(14d) Commission and Other Charges

Before begin to trade, the Customer should obtain a clear explanation of all commissions, fees and other charges. These charges will affect the net profit (if any) or increase loss which the Customer will be entitled or liable respectively.

(14e) Transactions in Other Jurisdictions

Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose the Customer to additional risk. Such markets may be subject to a rule which may offer different or diminished investor protection. Before trading, the Customer should enquire about any rules relevant to the particular transactions. The Customer’s local regulatory authority will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where the transactions have been effected. The Customer should ask the firm with for such transactions’ details about the types of redress available in both the Customer’s home jurisdiction and other relevant jurisdictions before starting to trade.

(14f) Currency Risks

The profit or loss in transactions in foreign currency-denominated futures and options contracts (whether they are traded in the Customer’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.

(14g) Trading Facilities

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. The Customer’s ability to recover certain losses may be subject to limits on liability imposed by the one or more parties, namely the system provider, the market, the clearing house or member firms. Such limits may vary. The Customer should ask the firm for such transactions’ details in this respect.

(14h) Electronic Trading

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 the Customer undertake transactions on an electronic trading system, the Customer 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 the Order is either not executed according to the communication of the Customer or not executed at all.

(14i) Off-Exchange Transactions

In some jurisdictions, firms are permitted to effect off-exchange transactions. The firm with which the Customer conduct the transactions may be acting as the Customer’s counterparty to the transaction. 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 the Customer undertake such transactions, the Customer should familiarise with the applicable rules and attendant risks.

(14j) Payment Token Derivatives (PTDs)

Transactions in PTDs such as Cryptocurrency Futures carry a high degree of risk, and may not be suitable for all investors. Losses may exceed deposits. Do conduct due diligence and consult financial advisor before making any trading decisions. The Customer should carefully consider whether such trading is appropriate in the light of its experience, objectives, financial resources and other relevant circumstances. In considering to trade, the Customer should be aware of the following risks, which include but are not limited to:

(i) Lack of Legislative Protection by Monetary Authority of Singapore (MAS)

Cryptocurrencies are not legal tender and are not issued by any government nor backed by any asset or issuer. Cryptocurrencies are currently not subjected to any regulatory requirements or supervisory oversight by the MAS. Hence, the safeguards afforded under MAS’ regulatory framework will not apply to consumers dealing with unregulated products, such as CFDs on Cryptocurrencies.
(ii) Extreme Volatility

Cryptocurrencies have little or no intrinsic value, making them hard to value and extremely volatile. Being highly speculative, investing in cryptocurrencies entails high risks as prices are prone to sharp, sudden swings as a result of unanticipated events or changes in market sentiments primarily due to the lack of price transparency.
(iii) Liquidity Risks and Price Slippages

Cryptocurrencies is a relatively new asset class and regulations, or a lack thereof, may have an impact on liquidity which in turn may result in unwanted price slippages. This is exacerbated in times of market volatility.
Possible failure of cryptocurrency exchanges may also increase illiquidity.
(iv) Cybersecurity Risks

Being a virtual, decentralized currency with no overarching regulatory body, cryptocurrency intermediaries are vulnerable to security breaches and market manipulations. Technical glitches on cryptocurrency intermediaries may happen as well. Such scenarios may cause disruption to trading and may cause substantial volatility in prices.
(v) Hard Forks

A hard fork changes the software, making it not backward compatible. Blocks running the new software will not be recognized and work with users running the older software, essentially splitting a single cryptocurrency into two. Hard forks may cause substantial volatility in prices.
Exchanges may in its sole discretion, take alternative action with respect to hard forks in consultation with market participants as may be appropriate.
Phillip Nova will endeavor to inform Customers of any hard forks but it is ultimately the Customer’s responsibility to be aware of them.
(vi) Weekend Gap Risk on Cryptocurrencies

Major cryptocurrencies trade 24 hours including weekends. However, Cryptocurrency Futures offered by Phillip Nova are not tradable on weekends and have specific trading hours. This may result in wide price gaps when the market opens after weekends that experienced market volatility.

15) Additional Risk Disclosure Statement for Payment Token Derivatives (“PTDs”)
Trading in PTDs such as futures contracts, cryptocurrency CFDs, debentures and/or collective investment schemes such as funds and ETFs that reference digital payment tokens (or cryptocurrencies) carries a high level of risk. The Customer runs the risk of losing all of their invested capital, or potentially more.The customer must be fully aware of the following risks associated with both derivatives and products that invest in cryptocurrencies, and carefully assess whether these products are suitable for their investment objectives and risk appetite:

(i) Lack of Legislative Protection by Monetary Authority of Singapore (MAS)

Cryptocurrencies have a wide range of attributes, characteristics and features and most cryptocurrencies fall outside of the ambit of the Payment Services Act. Therefore, the safeguards afforded under the Monetary Authority of Singapore (MAS) regulatory framework may not apply to investors dealing in unregulated products such as these cryptocurrencies.
(ii) Extreme Volatility

Cryptocurrencies have no central authority and are not backed by any government, have little or no intrinsic value, and exhibit high volatility. PTDs and investment products with exposure or investments in cryptocurrencies are prone to sudden sharp swings as a result of unanticipated events or changes in market sentiments primarily due to the lack of price transparency;
(iii) Liquidity Risks

Liquidity may also become limited and price gaps may occur in such circumstances;
(iv) Cybersecurity Risks

Cryptocurrency exchanges, where cryptocurrencies are bought and traded, may be susceptible to cyber security breaches. In the event of a cyberattack and theft of cryptocurrencies, it may result in drastic, adverse price movements.

16) Extended Hours Trading Risk Disclosure Statement

You, the Customer, should consider the following points before engaging in extended hours trading. “Extended hours trading” means trading outside of “regular trading hours”. “Regular trading hours” generally refers to the time between 9:30 a.m. and 4:00 p.m. Eastern Standard Time. Additionally, this disclosure is also available on the Phillip Nova website (www.phillipnova.com.sg).

(16a) Risk of Lower Liquidity

Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular trading hours. As a result, your order may only be partially executed, or not at all.

(16b) Risk of Higher Volatility

Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular trading hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price when engaging in extended hours trading than you would during regular trading hours.

(16c) Risk of Changing Prices

The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular trading hours, or upon the opening the next morning. As a result, you may receive an inferior price when engaging in extended hours trading than you would during regular trading hours.

(16d) Risk of Unlinked Markets

Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.

(16e) Risk of News Announcements

Normally, issuers make news announcements that may affect the price of their securities after regular trading hours. Similarly, important financial information is frequently announced outside of regular trading hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.

(16f) Risk of Wider Spreads

The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.

17) Risk Disclaimer

All publicity materials (including this website) are provided for general information only and do not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. They do not have any regard to your specific investment objectives, financial situation or any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the action or omission of the Customer based on this information. Investments are subject to investment risks. The risk of loss in leveraged trading can be substantial. The Customer may sustain losses in excess of the initial funds and may be called upon to deposit additional margin funds at short notice. If the required funds are not provided within the prescribed time, the Customer’s positions may be liquidated. The resulting deficits in the account are subject to penalty charges. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange. The Customer should also be aware of the commissions and finance costs involved in trading leveraged products.

These products may not be suitable for those Customers whose investment objective is preservation of capital and/or whose risk tolerance is low. Customers are advised to understand the nature and risks involved in margin trading. The Customer may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that the Customer choose not to obtain advice from a qualified financial adviser, the Customer should assess and consider whether the investment product is suitable before proceeding to invest and Phillip Nova do not offer any advice in this regard unless mandated to do so by way of a separate engagement. Customers are advised to read the trading account Terms & Conditions and Risk Disclosure Statement (available online at www.phillipnova.com.sg) before trading in this product. This advertisement has not been reviewed or endorsed by MAS.

All publicity materials (including this website) intended for general circulation only and do not take into account the specific investment objectives, financial situation or particular needs of any particular person. The Customer should seek advice from a financial adviser regarding the suitability of the investment product, taking into account the specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.

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Risk Disclosure

PHILLIP NOVA PTE LTD – RISK DISCLOSURE STATEMENT (ONLINE)

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