PRODUCT TERMS AND CONDITIONS & RISK DISCLOSURE STATEMENT. Brand Vantage FRNID (the Investment )

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1 PRODUCT TERMS AND CONDITIONS & RISK DISCLOSURE STATEMENT Brand Vantage FRNID (the Investment ) Description This Investment is a Floating Rate Negotiable Instrument of Deposit (FRNID) with a maturity of three (3) years from the Issue Date. The Principal Amount is only guaranteed if the Investment is held to maturity and is subject to non-occurrence of an early termination in accordance to this Product Terms and Conditions. This Investment is NOT insured by Perbadanan Insurans Deposit Malaysia. This Investment is suitable for Investors who: Seek 100% principal guarantee if held to maturity and is subject to non-occurrence of an early termination in accordance to the Product Terms and Conditions herein; Seek exposure to the Reference Stocks and hold a bullish view on the performance of the Reference Stocks for a three (3) year period; Seek to receive potential Monthly Variable Coupon i on a monthly basis, subject to the performance of Reference Stocks; Are willing to accept the risk of receiving zero coupon for the particular month if any of the Reference Stocks is not at or above the Barrier Level on any of the Valuation Dates during the relevant monthly Observation Period (i) ; and Are willing to hold the Investment until maturity (three (3) years). Product Risk Profile Conservative PRODUCT TERMS AND CONDITIONS The Issuer or the Bank Issue Date Maturity Date Format CIMB Bank Berhad (13491-P) To be determined by the Bank The Bank, may, at its sole discretion, revise any indicative prices or rates, or cancel the proposed issuance or close the offer for sale of the Investment at any time prior to the Issue Date. In the event the Bank decides to cancel the proposed issuance of the Investment, notification will be provided to the Investors and any monies placed with the Bank as Principal Amount will be returned to the relevant Investors. Three (3) years from the Issue Date Subject to adjustment in accordance with the Business Day Convention and to any Settlement Disruption Event. If the last Valuation Date in respect of final Observation Period (i) is postponed due to a Disrupted Day, the Calculation Agent shall in its sole discretion determine as to whether to postpone the Maturity Date to a date falling four (4) Scheduled Trading Days following such postponed last Valuation Date. For avoidance of doubt, there will be no compensation for the delayed payment. FRNID certificates held by Authorised Depository Institution. Page no.: 1/18

2 Calculation Agent Product Code Minimum Amount Principal Amount Issue Price Redemption Amount at Maturity The Bank, which shall make all calculations and determinations for the purposes of the Investment, and make such adjustments and take such actions in relation to the Investment as it deems fit, whose calculations and determinations shall, in the absence of fraud or manifest error, be binding on the parties holding the Investment. SD1525/01/A RM 65,000 and in further multiples of RM 5,000. The principal amount which the Investor applies for and deposits as stated in the FRNID Application Form. Principal Amount is net of early redemptions, if any. For the avoidance of doubt if the Investor early redeems the Investment, the Principal Amount shall mean the balance of the Principal Amount after early redemption. In the event of an early redemption by the Investor or due to the occurrence of an Event (as hereinafter defined) which triggers an early termination by the Bank, the Investor may not necessarily receive the Redemption Amount at Maturity as if the Investment were held to maturity. The Investor may also incur some degree of principal loss. 100% of the Principal Amount. 100% of the Principal Amount Reference Stocks Initial Price Barrier Level Observation Period (i) Valuation Date i Reference Stock i Bloomberg Ticker 1 McDonald s Corp. MCD UN Equity 2 Starbucks Corp. SBUX UQ Equity 3 Domino s Pizza Inc. DPZ UN Equity In respect of each Reference Stock i, the official closing price of the Reference Stock on the Issue Date. If such day is a Disrupted Day with respect to a Reference Stock, the Initial Price shall be based on the official closing price on the next Scheduled Trading Day. 100% of Initial Price, to be specified in the trade confirmation Monthly and shall be the period commencing from and including the relevant Start Date up to and including the corresponding End Date as stipulated in the trade confirmation. For avoidance of doubt, the first Observation Period (i) shall commence on the Scheduled Trading Day immediately after the Issue Date and there will be a total of 36 Observation Periods (where i=1 to 36). In respect of each Observation Period (i), each Scheduled Trading Day in such Observation Period (i). If any Scheduled Trading Day in such Observation Period (i) is a Disrupted Day, then the Consequences of a Market Disruption Event shall apply. Page no.: 2/18

3 Monthly Variable Coupon i, for each monthly Observation Period (i), if any, shall be determined as follows: (a) If the official closing price of EACH Reference Stock on any Valuation Dates during the relevant monthly Observation Period (i) is at or above the Barrier Level, the Monthly Variable Coupon i shall be payable and shall be calculated as follows: Principal Amount x Coupon Rate x 1/12 x FX End / FX Start Monthly Variable Coupon i Where: o Coupon Rate = Indicatively 8.88% p.a., where the final Coupon Rate shall be stated in the trade confirmation to be issued to the Investor. o FX End = Amount of MYR that can be bought in exchange for one (1) USD on a date no more than five (5) Business Days from the last Valuation Date in respect of a relevant Observation Period (i). o FX Start =Amount of MYR that can be sold in exchange for one (1) USD on the Issue Date. For avoidance of doubt, the official closing price of each Reference Stocks do not have to be at or above the Barrier Level on the same Valuation Date during the relevant monthly Observation Period (i). (b) If the official closing price of ANY of the Reference Stocks is not at or above the Barrier Level on any of the Valuation Dates during the relevant monthly Observation Period (i), the Coupon Rate shall be 0.00% p.a. and the Monthly Variable Coupon i shall not be payable. Monthly, commencing one (1) month after the Issue Date up to and including Maturity Date. The Coupon Payment Date(s) shall be specified in the trade confirmation and are subject to adjustments in accordance with Business Day Convention and to any Settlement Disruption Event. Coupon Payment Date(s) If the last Valuation Date in respect of a relevant Observation Period (i) is a Disrupted Day and is postponed ( Postponed Last Valuation Date ), the Calculation Agent shall in its sole discretion determine as to whether to postpone the relevant Coupon Payment Date in respect of the relevant Observation Period (i) to a date falling four (4) Scheduled Trading Days after the Postponed Last Valuation Date. For the avoidance of doubt, no further interest or compensation will be payable to the Investor due to any postponement of Coupon Payment Date(s). Page no.: 3/18

4 Events Events Market Disruption Event Events shall comprise the following: (i) Market Disruption Event: (ii) (iii) (iv) (v) (vi) Potential Adjustment Event; Extraordinary Event; Change in Law; Settlement Disruption Event; and Other Disruption Event (as applicable). With respect to each Reference Stock, a Market Disruption Event includes but without limitation to the following: (a) (b) (c) (d) the suspension of or limitation imposed on trading on the relevant Reference Stock by the Exchange and/or Related Exchanges; any event (other than an event described in (c) below) that disrupts or impairs the ability of market participants to effect transactions or obtain the market value of the relevant Reference Stock; the closure on any Scheduled Trading Day of any relevant Exchange(s) or Related Exchange(s) prior to its scheduled closing time unless such earlier closing time is announced by such Exchange(s) or such Related Exchange(s), as the case may be, at least one hour prior to (A) the actual closing time for the regular trading session on such Exchange(s) or such Related Exchange(s) on such Scheduled Trading Day or (B) the submission deadline for orders to be entered into the Exchange or Related Exchange system for execution at the valuation time on such Scheduled Trading Day, whichever is earlier; and/or a general moratorium is declared in respect of banking activities in any relevant country, which in any such case the Calculation Agent determines is material. Disrupted Day The Calculation Agent shall be entitled, at its sole and absolute discretion, to determine and make such adjustments to the terms of the Investment as it shall deem necessary in accordance with market practice, to reflect the economic effects of the Market Disruption Event. Any Scheduled Trading Day on which an Exchange or a Related Exchange fails to open for trading during its regular trading session or on which a Market Disruption Event occurs. Page no.: 4/18

5 Consequences of a Market Disruption Event If any Valuation Date is a Disrupted Day in respect of any of the Reference Stocks, as determined by the Calculation Agent in its sole and absolute discretion, the official closing price of each Reference Stock not affected by the occurrence of such Disrupted Day shall be determined on such day, and the official closing price of each affected Reference Stock ("Affected Reference Stock") shall be determined on the first (1 st ) succeeding Scheduled Trading Day that is not a Disrupted Day in respect of the Affected Reference Stock, unless each of the eight (8) Scheduled Trading Days immediately following that day is a Disrupted Day in respect of the Affected Reference Stock. In that case, (i) the eighth (8 th ) Scheduled Trading Day shall be deemed as the Valuation Date for the Affected Reference Stock notwithstanding that such day is a Disrupted Day and (ii) the Calculation Agent shall determine in good faith estimate the value per share or unit of the Affected Reference Stock on the eighth (8 th ) Scheduled Trading Day. Page no.: 5/18

6 Potential Adjustment Event With respect to each of the Reference Stock, a Potential Adjustment Event includes but without limitation to any of the following: (a) (b) (c) (d) a subdivision, consolidation or reclassification of the company of the relevant Reference Stock (unless resulting in a merger event) or a free distribution or dividend of any such Reference Stock to existing holders by way of bonus, capitalisation or similar issue; special dividend, dividend-in-specie, capital repayment or capital distribution. For avoidance of doubt, ordinary dividend which includes interim and final dividend is not considered a Potential Adjustment Event; rights issue; or any other event that the Calculation Agent determines would have a dilutive or concentrative effect on the theoretical value of the relevant Reference Stock. If the Calculation Agent determines that a Potential Adjustment Event has occurred, the Calculation Agent shall be entitled to, at its sole and absolute discretion, to: (a) make such adjustment(s) to the terms or variables of the Investment, including but not limited to the Initial Price and/or Barrier Level; and/or (b) substitute the Reference Stock affected by such Potential Adjustment Event with a substitute Reference Stock having such criteria as the Calculation Agent deems appropriate; and/or (c) make a corresponding adjustment(s), if any, to any variables or other terms of the Investment as the Calculation Agent deems appropriate to account for such dilutive or concentrative effect. These adjustment(s) may, but need not, be determined by reference to the adjustment(s) in respect of such Potential Adjustment Event made by an options exchange to options on the Reference Stock traded on such options exchange, and to determine the effective date(s) of the adjustment(s) and/or substitution(s). The calculation and/or determination of the Calculation Agent above shall be final and binding on the Investor. If the Calculation Agent determines that it is, or may be, impossible to make such adjustment(s) and/or substitution(s) or no adjustment(s) or substitution(s) that it could make will produce a commercially reasonable result, the Issuer may, by notice to the Investor, terminate this Investment. If this happens, the Issuer will pay the Investor, in full satisfaction of all obligations of the Issuer under this Investment, such amount as the Calculation Agent shall determine to be fair and reasonable in all circumstances. Upon such payment, the Issuer shall be fully released and discharged from its future obligations to the Investor in respect of this Investment. For the avoidance of doubt, any adjustments and/or substitutions made, if any, pursuant to the above shall not apply retrospectively towards any prior calculation or determination of the variables or terms of the Investment nor that of any prior settlement and/or delivery that has already been made, settled, paid and/or delivered prior to the effective date of the adjustment and/or substitution as determined by the Calculation Agent. Page no.: 6/18

7 Extraordinary Event With respect to the Reference Stock, an Extraordinary Event includes but without limitation to a merger event, tender offer, replacement of the Reference Stock with a successor of the Reference Stock, nationalisation, delisting of the Reference Stock, Change in Law (as hereinafter defined), winding up of the company of the Reference Stock, hedging disruption and increased cost of hedging. If an Extraordinary Event occurs, then the Calculation Agent may in its sole and absolute discretion: (a) make such adjustments to any variables or other terms of the Investment as the Calculation Agent deems appropriate to account for the economic effect on the Investment. These adjustment(s) may, but need not, be determined by reference to the adjustment(s) in respect of such Extraordinary Event made by an options exchange to options on the Reference Stock(s) traded on such options exchange; and/or (b) substitute the Reference Stock affected by such Extraordinary Event with substitute Reference Stock having such criteria as the Calculation Agent deems appropriate; and to determine the effective date(s) of the adjustment(s) and/or substitution(s). The calculation and determination of the Calculation Agent above shall be final and binding on the Investor. If the Calculation Agent determines that it is, or may be, impossible to make such adjustment(s) and/or substitution(s) or no adjustment(s) or substitution(s) that it could make will produce a commercially reasonable result, the Issuer may, by notice to the Investor, terminate the relevant Investment. If this happens, the Issuer will pay the Investor, in full satisfaction of all obligations of the Issuer under such Investment, such amount as the Calculation Agent shall determine to be fair and reasonable in all circumstances. Upon such payment, the Issuer shall be fully released and discharged from its future obligations to the Investor in respect of the relevant Investment. For the avoidance of doubt, any adjustments and/or substitutions made, if any, pursuant to the above shall not apply retrospectively towards any prior calculation or determination of the variables or terms of the Investment nor that of any prior settlement and/or delivery that has already been made, settled, paid and/or delivered prior to the effective date of the adjustment and/or substitution as determined by the Calculation Agent. Page no.: 7/18

8 Means that on or after the Issue Date of the Investment: (a) due to the adoption of or any change in any applicable law or regulation including without limitation, any tax law, exchange control laws or fx moratorium imposition which has an effect on the Investment and/or any of the cross-currency swap transactions related to the Investment undertaken by the Issuer, or Change in Law Settlement Disruption Event (b) due to promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority), the Calculation Agent determines in good faith that it has become illegal for the Bank to hold, acquire or dispose the Reference Stocks or its hedge positions or that the Bank will incur a materially increased cost in performing its obligations under the Investment (including without limitation, due to any increase in tax liability, decrease in tax benefit or other adverse effect on its tax position). Means: (a) Any event beyond the control of the Bank that causes the payment of the Monthly Variable Coupon i, Early Termination Amount and/or Redemption Amount at Maturity to be delayed, affected, restricted, prevented and/or or disrupted; or (b) Any event which occur at any time (as determined by the Calculation Agent) that delay, affect, restrict, prevent and/or disrupt the Bank from (i) converting USD into MYR through customary legal channels or (ii) repatriate any funds in any currency from the country or market in which its relevant hedge positions in respect of the Investment are traded; or (c) An event where the Calculation Agent determines that it has become impracticable, illegal or impossible (as a result of, without limitation, the adoption of, or any change in (or change in the interpretation of), any applicable law, rule, regulation, judgment, order, directive or decree of any Governmental Authority, exchange control, or otherwise as well as, any disruptions in the market for USD (including, without limitation, the existence of distortions in or unavailability of prices for USD)) for (i) the Issuer to convert the USD to MYR to make payment to the Investor; or (ii) the Issuer to repatriate any funds in any currency from the country or market in which its relevant hedge positions in respect of the Investment are traded. Page no.: 8/18

9 Consequences of Settlement Disruption Event Other Disruption Event If a Settlement Disruption Event occurs, : (a) the Issuer may either (at its option, and in its sole and absolute discretion): (i) delay payment of any and all amounts under or in connection with this Investment until the Settlement Disruption Event no longer exists, and/or (ii) pay any amounts in the Settlement Currency due under or in connection with this Investment calculated by reference to the rate of exchange between USD and MYR as the Calculation Agent determines to be reasonably obtainable at the relevant time (or, if no exchange would be possible at such time, by reference to such rate as it determines to be reasonable for such purposes in its discretion) (acting in good faith and in a commercially reasonable manner) and/or (b) Calculation Agent shall make such adjustments to the terms of the Investment deemed necessary in accordance with market practice, to reflect the economic effects of the Settlement Disruption Event. Other Disruption Event is, without limitation, the occurrence of any other event which has an effect on the Investment. The Calculation Agent shall make such adjustments to the terms of the Investment deemed necessary to reflect the economic effects of the Other Disruption Event. Other Terms Scheduled Trading Day Exchange Related Exchange Business Day Business Day Convention Early Redemption In respect of each Reference Stock, a day on which the Exchange and the Related Exchange are scheduled to be open for trading for its regular trading sessions. New York Stock Exchange & NASDAQ Global Market. All Exchanges, meaning each exchange or quotation system where trading has a material effect (as determined by Calculation Agent) on the overall market for futures or options contracts relating to any of the Reference Stocks. A day (other than Saturday, Sunday or public holiday) on which commercial banks are open for business (including dealing in foreign exchange and foreign currency deposits) in Kuala Lumpur and New York. Following. If the convention for adjusting any relevant date falling on a day that is not a Business Day or Scheduled Trading Day, as the case may be, is specified as Following, that date will be the first following Business Day or Scheduled Trading Day, as the case may be. Any early redemption requested by the Investor(s) shall be at the discretion of the Bank. In the event of an early redemption which has been accepted by the Bank, Investors agree that the early redemption amount may not necessarily be equal to the Redemption Amount at Maturity. Any redemption of the Investment prior to the Maturity Date will be at a price that will be published by the Issuer and may result in a partial loss of the Principal Amount. Any partial redemption of the Principal Amount of the Investment must be in a minimum denomination of RM65, and in further multiples of RM5, provided always that any partial redemptions must not result in the outstanding Principal Amount being less than RM65,000.00, or any other denominations/amounts as may be notified by the Bank from time to time. Page no.: 9/18

10 Early Termination Settlement Method in the event of Early Termination Upon the occurrence of any of the Event(s), the Bank shall have the discretion to terminate the Investment prior to the Maturity Date whereupon: (a) (b) The Bank shall issue a notice to the Investor(s) to inform Investor(s) of the occurrence of the Event which has triggered the early termination and all future coupons in respect of this Investment will no longer be payable ( Early Termination Event Notice ); Following issuance of the Early Termination Event Notice, the Bank shall within a reasonable period as determined by the Bank in its sole discretion, issue a second notice ( Early Termination Valuation Notice ), to inform the Investor of the Early Termination Amount and the Early Termination Settlement Date, where ; (i) (ii) Early Termination Amount is the amount in Malaysian Ringgit as determined by the Calculation Agent in its sole discretion after taking into consideration of currency conversion adjustments and all costs, including but not limited to, the cost of unwinding hedges and the cost of any applicable taxes, in good faith, and; Early Termination Settlement Date is the latest date by which the Bank shall pay such Early Termination Amount to the Investor and where such date shall be no later than seven (7) Business Days from the Early Termination Valuation Notice. Upon the delivery of the Early Termination Event Notice, this Investment shall be deemed terminated and save for the payment of the Early Termination Amount the Bank shall have no further obligations to the Investor under this Investment including but not limited to payment of any Redemption Amount at Maturity and future coupons to the Investor(s). For the avoidance of doubt, any failure by the Bank to inform or deliver a notification to the Investor on the occurrence of an Event shall not prejudice the Bank s right to deliver such notification subsequently and such failure shall not operate as a waiver of any right of the Issuer to early terminate this Investment in accordance with the terms and conditions herein. Cash Settlement in MYR. Page no.: 10/18

11 Transferability Survivorship Clause Authorised Depository Institution (ADI) In the event the Investor intends to sell this Investment to another Investor, the Issuer will be required to conduct an assessment on the proposed new Investor's suitability prior to transferring the Investment to the new Investor. The Issuer has the right to refuse the proposed transfer if the assessment indicates a lack of customer suitability or any other criteria required by the Issuer. The minimum Principal Amount transferred or to be transferred must be no less than RM65, ("Minimum Transfer Amount") at all times and any additional amounts transferred or to be transferred above the Minimum Transfer Amount shall be in further multiples of RM5, ( Additional Transfer Amount ) provided always that any transfer or proposed transfer must not result in the outstanding Principal Amount being less than the Minimum Transfer Amount, or any other denominations/amounts as may be notified by the Bank from time to time. With effect from the date the Minimum Transfer Amount and/or the Additional Transfer Amount is transferred to the new Investor ("Transfer Date"), (i) (ii) the Bank and the Investor are each released and discharged from further obligations to each other with respect to the Minimum Transfer Amount and/or Additional Transfer Amount of the Investment and their respective rights against each other thereunder are cancelled, provided that such release and discharge shall not affect any rights, liabilities or obligations of the Bank or Investor with respect to payments or other obligations due and payable or due to be performed prior to the Transfer Date, and all such payments and obligations shall be paid or performed by the Bank or the Investor in accordance with the terms of this Product Terms and Conditions the Bank and the new Investor shall each undertake liabilities and obligations towards the other and acquire rights against each other identical in their terms to this Product Terms and Conditions. Provided always that the Bank shall have the right to require evidence satisfactory to it (including the relevant letters of administration or grant of probate) of the rights of any person or persons seeking to claim on the Investment under this clause in the event of a death, and subject to compliance (if required) with all applicable laws, Shariah laws, regulations or any internal policy of the Bank: (i) for any Investment which is held by an individual, in the event of such individual s death; or (ii) for any Investment which is jointly held, in the event of the death of any one of the Investment holders; the Bank is authorised to take such action as it deems fit, including make all payments (or transfers, where applicable) in respect of all such Investment to the order of beneficiary or the surviving account holder of the Investment. Notwithstanding the above, the Bank is entitled to request for any other evidence or document as may be necessary in order to make any such payments or transfers. Any payments made in accordance to the above, shall be a complete discharge of the obligations of the Bank under this Investment. The Bank. The Bank hereby agrees to waive all charges of the Securities Custodial Account (SCA) in relation to this Investment, in its capacity as Authorised Depository Institution (ADI). The terms and conditions governing the operations of the SCA opened with the Bank shall be applicable. Page no.: 11/18

12 Communication Notice of Changes Issuance Program Governing Law Each communication to be made hereunder shall be in writing. Any notice or communication under this Product Terms and Conditions shall be delivered personally, sent by post, facsimile or transmission to the addresses, and facsimile numbers or addresses specified below or to such other address, or facsimile number or address as the recipient may have notified the other party hereto in writing. Proof of posting or dispatch of any notice or communication shall be deemed to be proof of receipt: (a) if it is personally delivered, at the time of delivery and duly acknowledged; (b) in the case of a letter sent by post, on the 5th Business Day after posting; and (c) (d) in the case of a facsimile, on the Business Day immediately after transmission provided that the sender has received a successful fax transmission report; and if sent by transmission, upon receipt by the recipient. In addition to the above, the Bank is entitled to deliver any notice or communication under this Product Terms and Conditions through any means of public communication which the Bank maintains, including but not limited to the Bank s official website. The Investor shall verify all statements, confirmation and advices sent in accordance with the Bank s standard practice by post and/or other forms of electronic communication to the Investor. If no objection is raised by the Investor within seven (7) days of the date of such statement, confirmation or advice, such statement, confirmation or advice shall be deemed conclusive and binding against the Investor and the Investor shall not be entitled to object thereto. However, the Bank may at any time, rectify any error on any entry, statement, confirmation or advice which has been proven to its satisfaction. The Investor shall immediately notify the Bank if a statement, confirmation or advice is not received by the Investor in the ordinary course. The Bank reserves the right upon giving adequate notice to add, delete or amend any of the provisions stated herein at any time. Any variations, additions, deletions or amendments ( the Amendment ) to the provisions herein shall be binding on the Investor and be brought to the attention of the Investor by electronic means, in writing, or displayed at the Bank's business premises and website and the Amendment shall be deemed binding on the Investor from the date as specified by the Bank in the notification. Floating Rate Negotiable Instruments of Deposit is issued pursuant to Bank Negara Malaysia s Guidelines on Introduction of New Products (2011) and Guidelines on Product Transparency and Disclosure (2013). The laws of Malaysia. Page no.: 12/18

13 Should you require additional information about investment, please refer to the banking info booklet on Investing Your Money, available at all our branches and the website. 1. For internal dispute / complaints, if any, relating to any matter herein can be made and sent to the following address of CIMB and/or by contacting CIMB by telephone and/or facsimile at the following numbers: (i) Customer Resolution Unit (CRU) (a) via phone to : (b) via fax to : (c) via to : CRU@cimb.com (d) via letter to : 19th Floor, Menara Bumiputra Commerce 11, Jalan Raja Laut Kuala Lumpur 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the following: (ii) Bank Negara Malaysia Laman Informasi Nasihat dan Khidmat (LINK) (a) via phone to : extension 8950 / 8958 (b) via website : (iii) BNMTELELINK (a) via phone to : LINK ( ) (b) via fax to : (c) via to : bnmtelelink@bnm.gov.my (d) via letter to : Jabatan Komunikasi Korporat Bank Negara Malaysia P.O. Box Kuala Lumpur Page no.: 13/18

14 RISK DISCLOSURE STATEMENT The purpose of this Risk Disclosure Statement is for the Investor to make an informed assessment of the risks and uncertainties associated with the Investment. Accordingly, the Investor should read this Risk Disclosure Statement carefully to ensure that it understands the risks involved and should carefully consider whether or not investing in the Investment is suitable for the Investor in light of its financial condition, risk tolerance level, investment requirements and experience. The Investor should assume that this list of, and description of, possible risks is not exhaustive, and should seek independent advice from its own professional advisers (including legal, tax, financial and accounting) as to the risks and merits of investing in this Investment. Credit Risk This Investment is principal guaranteed if held to maturity. This Investment is NOT insured by Perbadanan Insurans Deposit Malaysia. The payment of the Principal Amount or returns (coupon) of this Investment depends upon the ability of the Bank to make such payments. The Investor is therefore taking the credit risk of the Bank as the issuer to the Investment. Given this long-term exposure, the Investor should be comfortable with the credit strength of the Bank and its ability to perform its obligations herein. Mismatch Risk The timely payment of the Monthly Variable Coupon i and the Redemption Amount at Maturity is an obligation of the Bank, which is obliged to obtain the necessary funds and to put in place the necessary hedges to ensure its ability to make such payments. Hence the Investor does not bear the direct risk of mismatch between the Investment and the underlying hedges. The Investor should however ensure the suitability of the Investment for matching its own investment or return requirements. Market Risk The returns on the Investment may be dependent upon the performance of the underlying reference(s). The performance may be susceptible to fluctuations due to economic factors, market sentiments and may vary depending on the outcome of one or more market factors. This may include the possibility that the returns on this Investment may be substantially less than expected, or even that no returns at all may result from this Investment. Principal Guarantee, Early Redemption and/or Early Termination The Redemption Amount at Maturity of this Investment is guaranteed only if the Investment is held to maturity. If this Investment is redeemed earlier than at maturity, either due to an early redemption or due to an Event which triggers an early termination by the Issuer, the Investor may not necessarily receive the Redemption Amount at Maturity as if the Investment were held to maturity. The Investor may also incur some degree of principal loss. As such, potential Investors should be prepared to hold this Investment to maturity. Legal Risk This Investment is subject to Malaysian laws, regulatory guidelines issued by Bank Negara Malaysia and such other relevant laws, regulations and guidelines. The Investor should be aware of the legal terms and conditions of the Investment (and if necessary seek legal advice in relation thereto) to ensure that, in entering into this Investment the Investor is not in breach of any laws, regulations, contractual or other legal limitations that may apply to the Investor. In the event of a change in such laws, regulations or guidelines, the Bank may be obliged to change some or all of the terms and conditions of the Investment, including the possibility of an early termination by the Bank. Page no.: 14/18

15 Liquidity Risk This Investment may represent one or more embedded financial instruments, including derivative instruments. The underlying instruments themselves or the combination of such instruments may be relatively illiquid. Such illiquidity may be reflected in the pricing or valuation of this Investment in the event of early redemption or transfer. In addition, Investors should be aware of the possibility that there may not be a liquid secondary market for this Investment, nor is the Bank under any obligation to make a market in this Investment. Currency Risk Investors will be exposed to foreign exchange risk as the Monthly Variable Coupon i is calculated based on the prevailing rate of exchange between USD and MYR. Currency fluctuations may have an adverse effect on the potential coupon to be earned by the investor. In addition, the imposition of currency control measures may restrict the convertibility or transferability of currency or cause delay in settlement. Options Risk The Investment may contain one or more embedded financial instruments making use of certain derivatives such as options or swaps. The value of such instruments depend on a variety of market factors, including movements in the underlying Reference Stocks, the variability or volatility of such Reference Stocks, interest rate levels, dividend levels, foreign exchange rates and other factors. In particular, the Investor should be aware that the value of the instrument may not necessarily change in constant proportion to changes in the underlying Reference Stocks. Further, such instruments by their nature will tend to decline in value over time, assuming that all other market factors remain unchanged. These factors affecting the value of the instrument will also be reflected in the value of the Investment in which it is embedded. The Investors should also be aware that by entering into this Investment, the Investors are foregoing floating/variable deposit rates in exchange for potential option/variable payouts and/or fixed/minimum returns. Tenor Risk Generally, the further away an Investment is from its maturity, the lower its market value is compared to its potential value at maturity. For a principal guaranteed investment, the principal protection component aims to achieve the guaranteed value or principal value at maturity. As the principal protection component forms part of the Investment's value, potential Investors may receive an early redemption value which is lower than its potential value at maturity if they redeem during the early stages of the Investment before maturity. Role of Calculation Agent The Calculation Agent does not act as the agent of the Investor and therefore owes no fiduciary duty to the Investor in arriving at its calculations and determinations. The Calculation Agent however is obliged to act in good faith in making its calculations in respect of the amounts to be paid out. Operational Risk The performance/execution of the terms and conditions of this Investment depends upon the proper functioning of the systems and processes both internal and external. An unforeseen disruption of such systems and processes, including that resulting from a market disruption or system interruption, may result in a delay in the performance of such terms. The Investor should also be prepared for, and have the necessary resources to manage, any internal operational issues arising from this Investment, including receipt of principal and returns. Tax Risk Before entering into any Investment, the Investor should understand the tax implications of doing so e.g. income tax. Different transactions may have different tax implications. The tax implications are dependent upon the nature of the Investor s activities and the transaction in question. The Investor should, therefore, consult the Investor s tax advisor to understand the relevant tax considerations. Page no.: 15/18

16 Privacy Laws (for individuals) (a) Pursuant to the requirements of the Personal Data Protection Act 2010, the Bank is required to obtain the Investor s consent for the processing of the Investor s personal data. Therefore, the Investor hereby consents to the Bank s processing of the personal data which the Investor may provide to the Bank now and from time to time in connection with the Investment herein as well as the services provided by the Bank to the Investor. In this regard, the Investor also confirms that the Investor has read, understood and agreed to be bound by the CIMB Group privacy notice (which is available at or ( Privacy Notice ) and the clauses herein, as may relate to the processing of the Investor s personal information. For the avoidance of doubt, the Investor agrees that the said Privacy Notice shall be deemed to be incorporated by reference into this Product Terms and Conditions. (b) In the event the Investor provides personal and financial information relating to third parties, including information relating to its next-of-kin, guarantors and other individual security providers and dependents, for the purpose of opening, maintaining or operating its account(s) with the Bank, facilitating this Investment or otherwise subscribing to the Bank s products and services, the Investor (a) confirms that Investor has obtained their consents or are otherwise entitled to provide this information to the Bank and for the Bank to use it in accordance with this Product Terms and Conditions and the continuing operation of any account; (b) agree to ensure that the personal and financial information of the said third parties is accurate; (c) agree to update the Bank in writing in the event of any material change to the said personal and financial information; and (d) agree to the Bank s right to terminate this Product Terms and Conditions should such consent be withdrawn by any of the said third parties. (c) Where the Investor instructs the Bank to effect any sort of cross-border transaction (including to make or receive payments), the details relevant to the cross-border transaction (including information relating to those involved in the said transaction) may be received from or sent abroad, where it could be accessible (whether directly or indirectly) by overseas regulators and authorities in connection with their legitimate duties (e.g. the prevention of crime). In instructing the Bank and/or its agents to enter into any cross-border transaction on the Investor s behalf, the Investor agrees to the above said disclosures on behalf of itself and others involved in the said cross-border transaction. (d) The Bank may use a credit reporting/reference agency to help make decisions, for example when the Bank needs to (a) check details on applications for credit and credit-related or other facilities; (b) manage credit and credit-related accounts or facilities, including conducting reviews of the Investor s portfolio(s) or pursuant to this Investment; and/or recover debts. The Investor will be linked by credit reporting/reference agencies to any other names the Investor uses or has used, and any joint and several applicants. The Bank may also share information about the Investor and how it manages its account(s) and/ or the Investment with relevant credit reporting/reference agencies. (e) Notwithstanding subparagraph (a) above, the Investor will have the option to withdraw the consent given by it earlier. In such instances, the Bank will have the right to not enter into or discontinue any Investment or any product, service, account(s) that is/are linked with such information. Without derogation to anything herein provided in this clause and specifically with respect to third parties, in the event that the said consents or authorizations referred to in subparagraph (b) above is/are subsequently revoked by any of the said third parties, the Investor agrees that the Bank shall have the absolute right to terminate this Product Terms and Conditions and/or close the account(s) for which the consents of such third parties are related to the Investment(s) or which may be required for the carrying on of any services by the Bank. Page no.: 16/18

17 (f) The Bank reserve the right to amend this clause from time to time at its sole discretion and shall provide prior notification to the Investor in writing and place any such amendments on the Bank s websites and/or by placing notices at the banking halls or at prominent locations within the Bank s branches. (g) For the purposes of this clause, the CIMB Group consists of CIMB Group Holdings Berhad and all its related companies as defined in Section 6 of the Companies Act 1965 and Affiliates that provide financial and other regulated services, excluding companies, branches, offices and other forms of presence operating outside Malaysia, and the use of the words the Bank are to be read as references to the CIMB Group. (h) This clause shall be without prejudice to any other clause in this Product Terms and Conditions which provides for the disclosure of information. Privacy Laws (for corporates) (a) The Investor confirms that in the event it provides the Bank with personal information relating to third parties including information relating to the Investor s individual shareholders, directors, officers, authorized representatives, the Investor has obtained their respective requisite consent: (i) for their personal information to be provided to the Bank as the Bank may require; and (ii) for the Bank to disclose the information to its subsidiaries or related corporations in facilitating the Investments, business and operations pursuant to this Product Terms and Conditions. (b) The Investor agrees to update the Bank in writing should there be any changes to the personal information of the said third parties as stated in subparagraph (a) above in a timely manner in which event the Investor s confirmation in respect of the said requisite consent are accordingly provided by the Investor as set out in subparagraph (a) above. Page no.: 17/18

18 Additional Notice The Bank owes no fiduciary duty to the Investors and the only legal duties and obligations of the Bank to the Investors are as expressly set out herein. Investors of this Investment are not covered by the compensation fund under the Capital Markets and Services Act 2007, as amended from time to time. The compensation fund does not extend to Investors of this Investment who have suffered monetary loss as a result of a defalcation, or fraudulent misuse of moneys or other property, by a director, officer, employee or representative of the Bank. Where Investors suffer monetary loss in the above circumstances related to the acts of the Bank s employee, Investors may lodge a complaint with the complaints handling unit of the Bank. Investors who are not satisfied with the decision of the Bank may refer his/her case to the Financial Mediation Bureau within 180 days of receiving a final decision from the Bank. In the event of any inconsistency, conflict, ambiguity or discrepancy between the English text or any other version in a different language of the Product Terms and Conditions, Risk Disclosure Statement and Product Disclosure Sheet the English version shall prevail. Where request is made by the Investors for the Bahasa Malaysia version of the relevant Agreements herein, the Bank shall provide the same and allow the Investors to complete the relevant forms and sign the Agreements relating to this Investment in the Bahasa Malaysia version and such version in Bahasa Malaysia signed by the Investors shall form the basis of the contract between the Bank and the Investors relating to this Investment. Investors must read and understand the Risk Disclosure Statement, Warning and Disclaimer, if any, as contained in this document for this product before deciding to invest. Investors may seek clarification from the Bank should they require additional information about the Investment. While all information in this document has been produced or compiled from sources believed to be reliable, the Bank makes no representation as to its accuracy or completeness. Nothing in this document is to be construed as a solicitation or offer of legal, investment, tax or other advice or a recommendation to engage in any transaction. The performance of the Reference Stocks is used as a basis to calculate the returns on this Investment. However, this Investment is not a direct investment in the Reference Stock(s) or any of its components. Page no.: 18/18