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 note that SG Kleinwort Hambros Bank Limited does not provide tax advice. The level of taxation depends on individual circumstances and such levels and bases of taxation can change. You should seek professional tax advice to understand any applicable tax consequences. In addition, the material is not intended to provide and should not be relied on for, accounting or legal purposes and independent advice should be sought where appropriate.
Council Directive (EU) 2018/822 amending Directive 2011/16/EU (“DAC 6”) - United Kingdom
The arrangement described herein may be considered as a reportable cross-border arrangement according to Council Directive (EU) 2011/16 regarding disclosable arrangements under hallmark category D (as amended by The International Tax Enforcement (Disclosable Arrangements) (Amendment) (No. 2) (EU Exit) Regulations 2020) and, as such, may need to be reported to the relevant tax authorities in accordance with the relevant regulations.
SG Kleinwort Hambros Bank Limited does not provide tax advice and you should consult your tax advisors for any further assistance.
Council Directive (EU) 2018/822 amending Directive 2011/16/EU (“DAC 6”) - Gibraltar
The arrangement described herein may be considered as a reportable cross-border arrangement according to Council Directive (EU) 2011/16 regarding disclosable arrangements under hallmark category D (as amended by The Income Tax Act 2010 (Amendment) (EU Exit) Regulations 2021) and, as such, may need to be reported to the relevant tax authorities in accordance with the regulations. Cross-border arrangements involving tax residents and/or intermediaries situated in Spain may still be subject to DAC 6 reporting under all hallmarks as foreseen in the applicable regulations.
SG Kleinwort Hambros Bank Limited, Gibraltar Branch 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.
Compensation Schemes - Structured Products
United Kingdom, Channel Islands and Gibraltar
For clients of SG Kleinwort Hambros Bank Limited and clients of SG Kleinwort Hambros Bank Limited, Gibraltar Branch, investments in structured products will not benefit from protections provided by the UK Financial Services Compensation Scheme (the “Compensation Scheme”).
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 Scheme.
However, investors may be eligible to claim compensation under the Compensation Schemes if, due to failure or insolvency, SG Kleinwort Hambros Bank Limited is unable to meet claims against its UK Head Office or Gibraltar branch 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.
There is no compensation scheme in relation to investment accounts available in the Channel Islands. In the event of default or failure of SG Kleinwort Hambros Bank Limited, Jersey Branch or SG Kleinwort Hambros Bank Limited, Guernsey Branch or the Issuer of the structured product, no compensation will be payable.
United Kingdom, Channel Islands and Gibraltar
The UK head office and Gibraltar branch of SG Kleinwort Hambros Bank Limited are covered by the Financial Services Compensation Scheme ("FSCS"). Investors and depositors may be entitled to compensation under the Financial Services Compensation Scheme (“FSCS”) if Kleinwort Hambros cannot meet its obligations, depending on the circumstances of the claim. Most clients – including most individuals and businesses – are covered by the scheme, up to the limit of £85,000 per person. Full details of the scheme are available at: www.fscs.org.uk.
SG Kleinwort Hambros Bank Limited, Jersey Branch 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 at: www.gov.je/dcs.
SG Kleinwort Hambros Bank 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 at: www.dcs.gg. For further information about the schemes (including the amounts covered and eligibility to claim), please contact your Private Banker.
Jersey and Guernsey do not have compensation schemes in relation to investment services. However UK-regulated mortgage business conducted by SG Kleinwort Hambros Bank Limited is covered by the FSCS if you were resident in the UK at the time the service was provided.
Legal and Regulatory Information
This document is issued by SG Kleinwort Hambros Bank Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK. The company is incorporated in England & Wales under number 964058 with registered office at One Bank Street, Canary Wharf, London E14 4SG. Services provided by non-UK branches of SG Kleinwort Hambros Bank Limited will be subject to the applicable local regulatory regime, which will differ in some or all respects from that of the UK. Please see the Information Documents on our website for further information: https://www.kleinworthambros.com/en/important-information.