Structured Products Performance Update – Important Information
For discretionary portfolio management and investment advisory clients: the asset allocation and risk profile of your portfolio continues to reflect your investment objectives and risk appetite and any other investment requirements we have previously agreed, as at the date of this report. If you wish to review your investment strategy, or there have been any changes to your financial circumstances, please contact your relationship manager.
Tax, Accounting and Legal
Any services and investments may have tax consequences and it is important to bear in mind that the Kleinwort Hambros Group does not provide tax advice. The level of taxation depends on individual circumstances and such levels and basis of taxation can change. You should seek professional tax advice in order to understand any applicable tax consequences.
Kleinwort Hambros shall not be liable for any losses and expenses arising directly out of the use or reliance on the information set out herein, including any reliance on book costs shown. The information contained herein is for your private use only and may not be reproduced, distributed or published without the prior written consent of Kleinwort Hambros.
Council Directive (EU) 2018/822 amending Directive 2011/16/EU (“DAC 6”)
The arrangement described herein may be considered as a reportable cross-border arrangement according to Council Directive (EU) 2011/16 regarding disclosable arrangements legislation (as amended from time to time) and, as such, may need to be reported to the relevant tax authorities in accordance with the relevant regulations.
SG Kleinwort Hambros Bank Limited and SG Kleinwort Hambros Bank (Gibraltar) Limited does not provide tax advice and you should consult your tax advisors for any further assistance.
The value of the index, indices, 'basket' of selected assets or other factor or combination of factors may fall as well as rise and you may not get back the amount initially invested through investment in this structure.
You should be aware that any maximum benefit described may only be available after a set period and the rate of income or growth may depend on specific conditions being met. The initial capital invested may be placed into high-risk investments and it may be geared, therefore a small percentage fall in any related index may result in a larger reduction in the amount paid out. There is a risk that you may not receive back all of your investment in the event of a default by the issuer. Please note that there is a restricted market for these types of investments. It may therefore not be readily realisable, and it may be difficult to sell, assign to a third party or obtain reliable information about its value, prior to maturity. If this product can be sold before the end of the investment term, then the price obtained may be lower than the purchase price paid.
Performance and fees
Past performance should not be seen as an indication of future performance. Investments may be subject to market fluctuations and the price and value of investments and the income derived from them can go down as well as up. Your capital may be at risk and you may not get back the amount you invest. Changes in inflation, interest rates and the rates of exchange may have an adverse effect on the value, price and income of investments.
United Kingdom, Channel Islands and Gibraltar
Investments in structured products will not benefit from protections provided by the UK Financial Services Compensation Scheme, the Channel Islands Financial Ombudsman, the Gibraltar Financial Services Commission or the Gibraltar Financial Services Ombudsman, when available, or the Gibraltar Investor Compensation Scheme (individually, a “Compensation Scheme” and collectively, the “Compensation Schemes”).
This means that, in general, the Compensation Schemes will not pay compensation to investors in the event of the failure of the issuer of such structured products. Where they apply to this product, any guarantee obligations on the Issuer are also not covered by the Compensation Schemes.
However, investors may be eligible to claim compensation under a Compensation Scheme, if due to failure or insolvency, SG Kleinwort Hambros Bank Limited, SG Kleinwort Hambros Bank (CI) Limited or SG Kleinwort Hambros Bank (CI) Limited – Guernsey Branch, as the case may be, is unable to meet claims against it for negligent advice or misselling in respect of a structured product of which it is the distributor and provider of advice.
In respect of a structured product of which SG Kleinwort Hambros Bank Limited is the plan provider or individual savings account (ISA) manager in the UK, investors may be eligible to claim compensation under the UK Financial Services Compensation Scheme for maladministration, mismanagement or misappropriation of funds.
Except for the Compensation Scheme limitations applicable to structured products as outlined above, SG Kleinwort Hambros Bank Limited is covered by the Financial Services Compensation Scheme ("FSCS"). The FSCS can pay compensation to investors if a bank is unable to meet its financial obligations. Most investors – including most individuals and businesses – are covered by the scheme.
In relation to investment services the limit is £85,000 per person. Compensation will be payable, however, only in circumstances where we have been in default to you of our obligations. It will not be available merely because your investments have not performed as well as you had expected unless we are somehow at fault.
For further information about the schemes (including the amounts covered and eligibility to claim) please contact your Private Banker or refer to the FSCS website: www.fscs.org.uk.
Except for the Compensation Scheme limitations applicable to structured products as outlined above, SG Kleinwort Hambros Bank (CI) Limited is a participant in the Jersey Bank Depositors Compensation Scheme (the “JBDC Scheme”). The JBDC Scheme offers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any five-year period. Full details of the JBDC Scheme and banking groups covered are available on the States of Jersey website www.gov.je/dcs or on request.
Except for the Compensation Scheme limitations applicable to structured products as outlined above, SG Kleinwort Hambros Bank (CI) Limited – Guernsey Branch is a participant in the Guernsey Banking Deposit Compensation Scheme (the “GBDC Scheme”). The GBDC Scheme offers protection for “qualifying deposits” up to £50,000, subject to certain limitations. The maximum total amount of compensation is capped at £100,000,000 in any five-year period. Full details are available on the GBDC Scheme’s website www.dcs.gg or on request.
Except for the Compensation Scheme limitations applicable to structured products as outlined above, SG Kleinwort Hambros Bank (Gibraltar) Limited is a participant in the Gibraltar Investor Compensation Scheme (the “Investor Scheme”). You may be entitled to compensation from the Investment Scheme if we cannot meet our obligations. Further details of the Investor Scheme are available on request or can be found at www.gics.gi. If you would not normally be classified as a retail client you may not be eligible for the Investor Scheme.
Legal and Regulatory Information
This document is issued by the following companies in the Kleinwort Hambros Group under the brand name Kleinwort Hambros:
SG Kleinwort Hambros Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm reference number is 119250. The company is incorporated in England and Wales under number 964058 and its registered address is 5th Floor, 8 St James’s Square, London SW1Y 4JU.
SG Kleinwort Hambros Bank (CI) Limited is regulated by the Jersey Financial Services Commission ("JFSC") for banking, investment, money services and fund services business. The company is incorporated in Jersey under number 2693 and its registered address is PO Box 78, SG Hambros House, 18 Esplanade, St Helier, Jersey JE4 8PR.
SG Kleinwort Hambros Bank (CI) Limited, Guernsey Branch’ is also regulated by the Guernsey Financial Services Commission ("GFSC") for banking, investment and money services business. Its address is PO Box 6, Hambro House, St Julian’s Avenue, St Peter Port, Guernsey, GY1 3AE.
SG Kleinwort Hambros Bank (Gibraltar) Limited is authorised and regulated by the Gibraltar Financial Services Commission for the conduct of banking, investment and insurance mediation business. The company is incorporated in Gibraltar under number 01294 and its registered address is 32 Line Wall Road, Gibraltar.