General Risk Disclosure

Introduction

Universal Securities and Investments Limited (hereinafter called “the Company”) is an Investment Firm regulated by the Financial Services Authority (FRN 574754)

This notice is provided to you in accordance with Markets in Financial Instruments Directive (MiFID) of the European Union and the FSA Rules.

Risk Warnings

The Client should not engage in any investment directly or indirectly in Financial Instruments unless he knows and understands the risks involved for each one of the Financial Instruments. So, prior to applying for an account the client should consider carefully whet her investing in a specific Financial Instrument is suit able for him in the light of his circumstances and financial resources.

The client is warned of the following risks:

  1. The Company does not and cannot guarantee the initial capital of the client s’ portfolio or its value at any time or any money invested in any financial instruments.
  2.  The client should acknowledge that, regardless of any information which may be offered by the Company, the value of any investment in Financial Instruments may fluctuate downwards or upwards and it is even probable that the investment may become of no value.
  3. The client should acknowledge that he runs a great risk of incurring losses and damages as a result of the purchase and/or sale of any Financial Instrument and accepts that he is willing to undertake this risk.
  4. Information of the previous performance of a Financial Instrument does not guarantee its current and/or future performance. The use of historical data does not constitute a binding or safe forecast as to the corresponding future performance of the Financial Instrument s to which the said information refers.
  5. The client is hereby advised that the transactions undertaken through the dealing services of the Company may be of a speculative nature. Large losses may occur in a short period of time, equalling the total of funds deposited with the Company.
  6. Some Financial Instruments may not become immediately liquid as a result e.g. of reduced demand and the client may not be in a position to sell them or easily obtain information on the value of these Financial Instrument s or the extent of the associated  risks.
  7. When a Financial Instrument is traded in a currency other than the currency of the client’s country of residence, any changes in the exchange rates may have a negative effect on its value, price and performance.
  8. A Financial Instrument on foreign markets may entail risks different to the usual risks of the markets in the client’s country of residence. In some cases, these risks may be greater. The prospect of profit or loss from transactions on foreign markets is also affected by exchange rate fluctuations.
  9. A Derivative Financial Instrument (i.e. option, future, forward, swap, contract for difference) may be a non delivery spot transaction giving an opportunity to make profit on changes in currency rates, commodity, stock market indices or share prices called the underlying instrument.
  10. The value of the Derivative Financial Instrument may be directly affected by the price of the security or any other underlying asset which is the object of the acquisition
  11. The client must not purchase a Derivative Financial Instrument unless he is willing to undertake the risks of losing entirely all the money which he has invested and also any additional commissions and other expenses incurred.
  12. Under certain market conditions it may be difficult or impossible to execute an order.
  13. Placing Stop-Loss orders serves to limit your losses. However, under certain market conditions the execution of a Stop-Loss order may be worse than its stipulated price and the realised losses can be larger than expected.
  14. A Bank or Broker through whom the Company deals or the Company, itself, may act in the same market as you, its own account involvement could be contrary to your interests.
  15. The insolvency of the Company or of a bank or broker used by the Company to effect its transactions may lead to your positions being closed out against your wishes.
  16. The client’s attention is expressly drawn to currencies traded so irregularly or infrequently that it cannot be certain that a price will be quoted at all times or that it may be difficult to effect transactions at a price which may be quoted owing to the absence of a counterparty
  17. Trading on-line, no matter how convenient or efficient, does not necessarily reduce risks associated with currency trading.
  18. There is a risk that the client’s trades in Financial Instruments may be or become subject to tax and/or any other duty for example because of changes in legislation or his personal circumstances. The Company does not warrant that no tax and/ or any other stamp duty will be payable. The client should be responsible for any taxes and/or any other duty which may accrue in respect of his trades.
  19. Before the client begins to trade, he should obtain details of all commissions and other charges for which the client will be liable. If any charges are not expressed in money terms (but for example as a dealing spread), the client should ask for a written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms.
  20. Investing in some Financial Instrument s entails the use of “gearing” or “leverage”. In considering whether to engage in this form of investment, the client should be aware that the high degree of leverage that is obtainable in Spot Foreign Exchange Trading can work against him as well as for him. The use of leverage can lead to large losses as well as gains. So, the client should unreservedly acknowledge and accept that he runs a great risk of incurring losses and damages as a result of the dealing in some Financial Instruments and accept and declare that he is willing to undertake this risk.
  21. Transactions may not be undertaken on a recognised or designated investment exchange and, accordingly, they may expose the client to greater risks than exchange transactions. The terms and conditions and trading rules may be established solely by the counterparty. The client may only be able to close an open position of any given contract during the opening hours of the exchange. The client may also have to close any position with the same counterparty with whom it was originally entered into.
  22. The Company will not provide the client with investment advice relating to investments or possible transactions in investments or make investment recommendation of any kind.
  23.  The Company may be required to hold the client’s money in an account that is segregated from other clients and the Company’s money in accordance with current regulations, but this may not afford complete protection. This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in all Financial Instrument and Investment services.
  24. The Company transacts with third party banking institutions to hold client money and also deposits client margin with our liquidity counterparty, itself a regulated banking institution, so as to be able to execute transactions on your behalf. The insolvency of any of these third party entities may cause the insolvency of the Company may delay the return of client moneys to you. Note however that the Company attaches the greatest importance to client money protection and has taken steps to protect client funds. [In general, individual and small company clients of the Company, being a UK designated investment business, should benefit from protection of up to £85,000 per individual client (and up to £170,000 for joint accounts) for cash deposits from the Financial Services Compensation Scheme in the event of a client money shortfall due to the Company’s insolvency or winding up.] – refer to www.fscs.org.uk for further details The Company is also required to hold a statutory amount of regulatory capital as a financial buffer to mitigate the adverse financial effects of its insolvency and/or winding up on its clients.
  25. Competent authorities may prohibit certain transactions outright or otherwise bans on specific trade positions, including, without limitation, bans on short-selling of financial stocks, bonds CFDs. Regulatory bodies may exercise their statutory discretion to compel the firm to cease trading which will result in your positions being closed or alternatively, you and/or the Company may be prevented from closing or risk managing your position or Company may even be prevented from notifying you that such events have taken place for a given period of time. You are likely to suffer loss in any of these situations.
  26. Competent authorities may also impose increasingly onerous compliance & reporting obligations, licensing fee, regulatory capital or other operational requirements on the firm which may, in severe circumstances, result in the Company ceasing to trade. The Company takes a prudent approach to its liquidity and capital requirements to mitigate this risk.
  27. If the Company’s own technology or that of its liquidity counterparty or any third party infrastructure on which its operations are dependent, including, without limitation, its data centre servers or commercial broadband as well as back-up providers or systems for essential infrastructure, suffers a fault for whatever reason, you may suffer loss as a result. The Company will in each circumstance assess the reason for the losses incurred and, where possible and at its sole discretion, compensate the affected clients.
  28. If an extraordinary event outside the control of you or the Company occurs, known as an Act of God or force majeure event, which includes, without limitation, war, strike, riot, crime, hurricane, flooding, earthquake, volcanic eruption, which prevents Company from fulfilling its contractual obligations to you (each, a “Force Majeure Event”), your positions may be closed or may be unable to be managed for a period of time. You may suffer loss as a result of a Force Event occurring.
  29. Whilst the Company will provide best-execution for its client transactions, you have no guarantee that your quoted prices will be the best-available market price at any time.
  30. Other than third-party information sources which the Company may provide from time to time (such as market event calendars) and without any liability for having done so, the Company will not advise you that any significant market news is pending or has occurred, nor will the Company convey any corporate actions or other notifications from underlying single stocks, including, without limitation, any information concerning rights issues, dividends, share splits, mergers, etc….

 

I/We have read and understood the risk warnings specific to the Saudi Share Swap Trades as set out above.

Client’s Name   ___________________________Signed       ________________________

Client’s Name   ___________________________Signed________________________(joint account)

Date (dd/mm/yyyy)          ____________________

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