Terms and Conditions
|Risk Disclosure and Important Note:
Should the security coverage ratio in respect of the outstanding amount of the facility, as conclusively determined by Fubon Bank (Hong Kong) (the “Bank”) at its sole and absolute discretion, fall to or below 100%, then the Borrower must upon request by the Bank either (a) provide additional security to the Bank; or (b) reduce the outstanding under the facility so that the said security coverage ratio will at all times be maintained equivalent to, or above, 100%. If the Borrower fails to comply with the request for additional security or reduce outstanding within the prescribed time, the pledged Unit Trust may be liquidated at a loss without notice. The Borrower will remain liable for any resulting deficit.
Borrower should have sufficient resources to:
1) Pay, out of own pocket the total value of the Unit Trust, including the portion not financed by the facility;
2) Meet scheduled principal repayment (if any) and aggregate interest payment over the entire intended facility arrangement; and
3) Repay on demand the entire sum and aggregate interest owed under the facility as required by the Bank.
The Bank reserves the right to accept or reject the loan application and offer such customers interest rates, loan tenors or loan plans subject to the approval result of the loan for each customer at sole discretion.
The following risk disclosure statements cannot disclose all the risks involved. You should undertake your own research and study before you trade or invest. You are advised to seek independent financial and professional advice before you trade or invest.
All investment involves risks. Price of investment products may go up as well as down and may even become valueless. Past performance is not indicative of future performance. Before making any investment decisions, a person should carefully consider whether the investment is suitable in light of his/her financial situation, investment experiences, investment objectives, and risk tolerance level. The Borrower may face substantial loss from relatively small movements in Unit Trust value, and the loss may be in excess of the initial investment amount. The Borrower should seek independent professional advice if necessary.
Using Unit Trust Financing Service will increase the investment risk. The Borrower may face substantial loss from relatively small movements in Unit Trust values and/or exchange rate, and the loss may be in excess of the Borrower’s initial investment amount and the Borrower may be requested upon a short notice to deposit additional funds with the Bank to maintain the security coverage positions. The Borrower understands that the leverage position is marked-to-market regularly and the customer may be called upon a short notice to deposit additional margin funds if the account margin level has reached margin call and/or force-sell level. If the Borrower fails to comply with the request for additional funds within the time prescribed or positions have reached force-sell level, the Borrower’s pledged Unit Trust may be liquidated at a loss without notice and without any margin calls. The Borrower will remain liable for any resultant deficit. The Borrower must have sufficient net worth to be able to assume the risks and agrees to bear the potential losses of investment through Unit Trust Financing Service.
The Borrower should have sufficient net worth to be able to assume the risks that the Unit Trust cannot be redeemed.
Interest Rate Risk
Under the facility, the interest rates applicable to the loan(s) may change over time, such that the Borrower may be required to pay additional interests and the costs of financing the loan(s) may increase. In addition, it may lead to the net cost of interest payable higher than the rate of return generated from the Unit Trust, resulting in the loss.
Dividend/Interest Distribution Risk
The dividend/interest distributed from the Unit Trust may not be sufficient to cover the interest payable under the facility and therefore reduce the rate of return from the Unit Trust, which may then require the Borrower to pay interest payments from his/her own pocket.
Exchange Rate Risk
If the currency of the pledged Unit Trust is different from the currency of the loan, it will be subject to exchange rate risk. The exchange rate between the two currencies may rise or fall. The fluctuation in exchange rates may result in losses.
The contents of this webpage have not been reviewed by the Securities and Futures Commission of Hong Kong and are for reference only, and does not constitute, nor is it intended to be, nor should it be construed as any advice, offer or solicitation to deal in any of the investment products. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives. You should not base on this webpage alone to make any investment decision, but should read in detail the relevant offering documents and Risk Disclosure Statements of the investment products or seek independent professional advice if in doubt. Certain unit trusts are investment product involving derivatives. The investment decision is yours but you should not invest in the investment product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience, investment objectives, and risk tolerance level.
The Bank is the authorized distributor of the fund house(s), and is responsible for introduction of the investment funds. The investment funds are not the product of the Bank. The Bank is not responsible for any terms or obligations of the investment funds. In case you file a written complaint regarding the selling process or processing of the related transaction to the Bank and the complaint is an “Eligible Dispute(s)” as defined in the Terms of Reference for the Financial Dispute Resolution Centre, the Bank is required to enter into a Financial Dispute Resolution Scheme process with you if the Eligible Dispute cannot be resolved after the Bank has issued the final written reply. If the complaint/dispute is related to the policy term, it should be resolved directly between the fund house(s) and you.
The collection of the above personal information is for our handling of customer's enquiry/application for the Fubon Investment Fund Financing Service which is provided at the customer's own discretion. The Bank will use the personal data so collected to contact you for responding your enquiry. When the Bank requests for any personal information, the Bank will state the purpose of collecting personal information, and ensure that the personal information shall only be used in accordance with the collection specification. Please click here for the details of "Notice to Customers and Other Individuals relating to the Personal Data (Privacy) Ordinance and Consumer Credit Data" ("Notice"). Your attention is also drawn to the Notice in relation to the supply, use and access of your credit data.