DUAL CURRENCY ACCOUNT

Transcription

1 17 August 2016 RESPONSIBILITY STATEMENT This Prduct Highlights Sheet has been reviewed and apprved by the directrs and/r authrized cmmittee and/r persns apprved by the Bard f Citibank Berhad and they have cllectively and individually accept full respnsibility fr the accuracy f the infrmatin. Having made all reasnable inquiries, they cnfirm t the best f their knwledge and belief, there are n false r misleading statements, r missin f ther facts which wuld make any statement in the Prduct Highlights Sheet false r misleading. STATEMENT OF DISCLAIMER The relevant infrmatin and dcument in relatin t the Dual Currency Accunt, including a cpy f this Prduct Highlights Sheet has been ldged with the Securities Cmmissin Malaysia under the Ldge and Launch Framewrk. The ldgment f the relevant infrmatin and dcument in relatin t the Dual Currency Accunt, including a cpy f this Prduct Highlights Sheet shuld nt be taken t indicate that the Securities Cmmissin Malaysia recmmends the Dual Currency Accunt r assumes respnsibility fr the crrectness f any statement made r pinin r reprt expressed in this Prduct Highlights Sheet. The Securities Cmmissin Malaysia is nt liable fr any nn-disclsure n the part f Citibank respnsible fr the Dual Currency Accunt and takes n respnsibility fr the cntents f this Prduct Highlights Sheet. The Securities Cmmissin Malaysia makes n representatin n the accuracy r cmpleteness f this Prduct Highlights Sheet, and expressly disclaims any liability whatsever arising frm, r in reliance upn, the whle r any part f its cntents.

2 Date: 17 August 2016 (This Prduct Highlights Sheet nly highlights the key features and risks f this unlisted capital market prduct. Investrs are advised t request, read and understand the disclsure dcuments* befre deciding t invest.) * The disclsure dcuments fr Dual Currency Accunt ( DCA ) include the Prduct Term Sheet, Risk Disclsure Statement, Subscriptin Frm, and relevant extract f the Citibank Accunt Terms and Cnditins applicable t DCA. This investment is NOT PRINCIPAL PROTECTED. This investment is NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA ( PIDM ). The infrmatin prvided in this sheet is valid as at 17 August What is this prduct abut? BRIEF INFORMATION ON THE PRODUCT The Dual Currency Accunt ( DCA ) is a structured prduct investment that may ptentially pay ut a higher return as cmpared t a nrmal depsit accunt. When making a DCA placement, the investr chses the investment amunt ( Principal Amunt ) the Base Currency / Reference Instrument, the Alternate Currency / Reference Instrument, the tenure fr the placement, the Strike Rate and the Interest Rate. The DCA placement will be denminated in the Base Currency / Reference Instrument. On Maturity Date, the investr will be paid the Principal Amunt and interest earned n the Principal Amunt ( Interest ). Hwever, depending n the exchange rate f selected Currency / Reference Instrument n Fixing Date ("Reference Rate"), Citibank Berhad ("Citibank") will pay the Principal Amunt and Interest in either the Base Currency / Reference Instrument r in the Alternate Currency / Reference Instrument (cnverted at the pre-determined Strike Rate) in accrdance with the FX Cnversin Cnditins and the ther terms and cnditins applicable t DCA ( FX Cnversin ). Shuld Citibank pay the Principal Amunt and Interest in the Alternate Currency / Reference Instrument, the Base Currency / Reference Instrument equivalent may be less than the Principal Amunt. As such, DCA is nt principal prtected. Please see What am I investing In? belw fr the definitin f Base Currency / Reference Instrument, Alternate Currency / Reference Instrument, Strike Rate and FX Cnversin Cnditins. 2. Wh is this prduct suitable fr? DCA is suitable fr an investr wh :- PRODUCT SUITABILITY Is risk prfiled 2 r higher (please refer t yur Investment Risk Prfile Wrksheet fr details n Investr Prfiles) Wishes t earn ptentially higher returns than traditinal depsits and is indifferent in accepting maturity prceeds in either the riginal currency f the placement r the alternate currency. Is prepared t hld the DCA placement until maturity and understands the risk f receiving the Principal Amunt and Interest in the Alternate Currency / Reference Instrument n the Maturity Date, which culd be wrth less than the initial Principal Amunt invested, resulting in a lss f part f the Principal Amunt. DCA is nt available t US Persns as defined in the Citibank Accunt Terms and Cnditins. 1

3 KEY PRODUCT FEATURES 3. What am I investing in? Minimum Investment Investment tenure Principal prtectin Interest Rate Interest payment frequency MYR50,000 r equivalent in Base Currency/Reference Instrument. Tenures f 1 week, 2 weeks and 1 mnth are available, depending n the Base Currency / Reference Instrument and Alternate Currency / Reference Instrument pairing selected. The Principal Amunt is nt prtected. The interest rates available fr yur chsing will vary depending n a variety f factrs including the Base Currency / Reference Instrument and Alternate Currency / Reference Instrument pairing, the investment tenure, the Strike Rate and market mvements. Please speak t yur Relatinship Manager / Treasury Cnsultant n the interest rates available. The interest earned will be paid n Maturity Date. Interest prceeds calculatin Principal Amunt x Interest Rate x (Investment tenure in days/either 360 r 365 depending n the Base Currency / Reference Instrument). Underlying asset /reference The underlying asset / reference fr this structured prduct investment wuld be the Base Currency / Reference Instrument and Alternate Currency / Reference Instrument that yu chse. The available Currencies / Reference Instrument are :- Australian Dllars (AUD), Canadian Dllars (CAD), Eur Dllars (EUR), Pund Sterling (GBP), Japanese Yen (JPY), Malaysian Ringgit (MYR), New Zealand Dllars (NZD), Singapre Dllars (SGD), US Dllar (USD), Gld (XAU) Pairing Refers t the Base Currency / Reference Instrument and Alternate Currency / Reference Instrument pairing that yu chse. Trade Date Value Date Fixing Date Maturity Date Base Currency / Reference Instrument Alternate Currency / Reference Instrument Spt Rate The date that the subscriptin takes place. The date that the Dual Currency Accunt cntract begins. The date determined by the Calculatin Agent based n the Investment tenure. The date that the Dual Currency Accunt cntract ends. The currency / reference instrument that yur DCA placement is denminated in. The currency / reference instrument that yur Principal Amunt and Interest earned may be cnverted t, n Maturity Date, using the Strike Rate. The Spt Rate is determined at the time f the rder is entered int the system n Trade Date. Strike Rate The rate at which the Principal Amunt and Interest in the Base Currency / Reference Instrument are cnverted int the Alternate Currency / Reference Instrument in the event f an FX Cnversin. The Strike Rate is determined at the time f the rder is entered int the system n Trade Date. 2

4 Reference Rate Under what circumstances will the Principal Amunt and Interest n the Principal Amunt be paid in the Alternate Currency / Reference Instrument (FX Cnversin Cnditins) Calculatin Agent Reference Rate, as determined by the Calculatin Agent, is the spt exchange rate fr the Pairing n the Fixing Date. Please refer t the Prduct Term Sheet fr mre infrmatin. In summary :- The Principal Amunt and Interest will be cnverted using the Strike Rate and paid in the Alternate Currency / Reference Instrument if the Reference Rate dentes that the Base Currency / Reference Instrument has strengthened against the Alternate Currency / Reference Instrument beynd the Strike Rate. Otherwise, the Principal Amunt and Interest will be paid in the Base Currency / Reference Instrument if: (i) The Reference Rate is equal t the Strike Rate (ii) The Reference Rate dentes the Base Currency/Reference Instrument has weakened against the Alternate Currency/Reference Instrument Please refer t the Prduct Term Sheet fr mre infrmatin. Citibank Berhad 4. What are the pssible utcmes f my investment? These illustratins are prvided fr illustrative purpses nly. It des nt present all pssible utcmes r describe all factrs that may affect the value f an investr s investment in a DCA. If yu have any questins r wuld like additinal infrmatin, please cntact yur Relatinship Manager. Illustratin 1 3

5 Illustratin 2 (Reverse Pairing) 5. Wh am I investing with? An investr is investing with Citibank Berhad, a bank licensed under the Financial Services Act 2013 f Malaysia. An investr assumes the risk that Citibank Berhad will nt be able t satisfy its bligatins under a DCA. N ther party is respnsible fr Citibank Berhad s bligatins under a DCA. Citibank Berhad acts as principal in a DCA. Citibank Berhad is the Calculatin Agent. While the Calculatin Agent will act in gd faith and in a cmmercially reasnable manner, it des nt assume any bligatin r duty t, r any relatinship f agency r trust fr r with the investr. Please als read the Pssible Cnflict f Interest Risk clause in the Prduct Term Sheet. 6. What are the key terms and cnditins f this prduct I shuld knw? Restrictins : Nn-transferable. Partial Withdrawals are nt allwed. An investr is nt permitted t give any ther party rights ver a DCA. Fr example, an investr cannt charge r assign this investment t a bank that has prvided the investr credit facilities. Cling ff Perid: Cling Off Perid des nt apply fr Dual Currency Accunt. 4

6 Pre-terminatin/ Early Redemptin by Investr: A Dual Currency Accunt is a shrt term investment prduct designed fr investrs t hld t maturity. Investrs shuld be aware that in the event they wish t make a pre-terminatin/early redemptin, they may nt achieve the ptential r enhanced returns via the expsure t the underlying asset/reference. Pre-terminatin/early redemptin will be made at the investr s sle discretin. By applying fr pre-terminatin/early redemptin, the Investr expressly acknwledges that the Principal Amunt and/r Interest may be lst r reduced as the market value f the underlying asset/reference may be substantially less than the Principal Amunt invested. The calculatin f any lss r reductin f the Principal Amunt and/r Interest is based n the market value f the underlying asset/reference upn the receipt f the pre-terminatin/ early redemptin request. The market value f the underlying asset/reference is generally gverned by the supply f and demand fr the underlying asset/reference and will generally fluctuate with, amng ther things, the liquidity and vlatility f the financial markets, ecnmic, financial and plitical events in ne r mre jurisdictins, develpments r trends in a particular industry and the financial cnditin f the underlying asset/reference. The calculatin f any lss r reductin f the Principal Amunt and/r Returns will nt necessarily cnfrm t r crrelate with any theretical pricing frmula r chart, any previus redemptin pattern f any previus r ther Dual Currency Accunt, and the exchange rates r value f the Currency / Reference Instrument at any particular time. There is n additinal fee r sales charges charged by Citibank fr such pre-terminatin/early redemptin. Yu may wish t cnsult yur financial advisr and/r tax cnsultant befre requesting fr a pre-terminatin/early redemptin. 7. What are the fees and charges I have t pay? All fees and charges are imputed within the investment s structure and return mechanics. There are n additinal fees and charges that an investr has t pay. 8. What are the key risks invlved? Investrs may be expsed t these key risks assciated with Dual Currency Accunt : Currency / Reference instrument Risk, Pre- Terminatin/ Early Redemptin Risk (By the investr) and Cmmitment Risk, Credit Risk, Legal Risk, Market/Underperfrmance Risk, Liquidity Risk, Operatinal Risk, Optins Risk, Cunter-party Risk, Mismatch Risk, Ptential Return Risk, Pssible Cnflict f Interest Risk, Exchange Cntrl Risk, Svereign Risk, Event Risk, Early Terminatin By Citibank Risk, Leverage Risk, Risk Relating t the Discretin f the Issuer r Calculatin Agent, Re-investment Risk, Taxatin Risk and Cmpunding f Risk. An investr must carefully cnsider all risk factrs befre making an investment decisin. Prir t entering int a transactin, an investr shuld cnsult with his wn legal, regulatry, tax, financial and accunting advisrs t the extent that he cnsiders it necessary. 9. Hw ften are valuatins available? The nminal investment amunt will be stated in the mnthly bank statement which is available t investrs every mnth. Mark t market valuatin is nt available as a DCA is a shrt term investment prduct that is meant t be held t maturity. 10. Hw can I exit frm this investment and what are the risks and csts invlved? If an investr wishes t terminate a DCA prir t its Maturity Date, the investr may make a request t Citibank. A Dual Currency Accunt is a shrt term investment prduct designed fr investrs t hld t maturity. Investrs shuld be aware that in the event they wish t make a pre-terminatin/early redemptin, they may nt achieve the ptential r enhanced returns via the expsure t the underlying asset/reference. Pre-terminatin/early redemptin will be made at the investr s sle discretin. By applying fr pre-terminatin/early redemptin, the Investr expressly acknwledges that the Principal Amunt and/r Interest may be lst r reduced as the market value f the underlying asset/reference may be substantially less than the Principal Amunt invested. The calculatin f any lss r reductin f the Principal Amunt and/r Interest is based n the market value f the underlying asset/reference upn the receipt f the pre-terminatin/early redemptin request. The market value f the underlying asset/reference is generally gverned by the supply f and demand fr the underlying asset/reference and will generally fluctuate with, amng ther things, the liquidity and vlatility f the financial markets, ecnmic, financial and plitical events in ne r mre jurisdictins, develpments r trends in a particular industry and the financial cnditin f the underlying asset/reference. The calculatin f any lss r reductin f the Principal Amunt and/r Returns will nt necessarily cnfrm t r crrelate with any theretical pricing frmula r chart, any previus redemptin pattern f any previus r ther Dual Currency Accunt, and the exchange rates r value f the Currency / Reference Instrument at any particular time. There is n additinal fee r sales charges charged by Citibank fr such pre-terminatin/early redemptin. Yu may wish t cnsult yur financial advisr and/r tax cnsultant befre requesting fr a pre-terminatin/early redemptin. 5

7 11. What d I need t d if there are changes t my cntact details? It is imprtant that yu infrm Citibank Berhad f any changes in yur cntact details t ensure that all crrespndence reach yu in a timely manner. T change yur cntact details, kindly cntact Citiphne at: (KL) (Penang) (JB) (Kuantan) (Melaka) (Sabah & Sarawak) 12. Where can I get further infrmatin r t ldge a cmplaint? 1. Shuld yu require additinal infrmatin abut investment, please refer t the bankinginf bklet n Investing Yur Mney, available at all ur branches and the website. 2. Kindly cntact yur designated Relatinship Manager if yu have any enquiries. Yu may als cntact us at: Citibank Berhad Wealth Management Prducts Level 19 Menara Citibank 165 Jalan Ampang Kuala Lumpur Tel : Fax : malaysia.custmer.service@citi.cm (*attentin: fr nn-accunt related r nn cnfidential query and feedback nly) 3. If yu have filed a cmplaint in cnnectin with this prduct and are nt satisfied with the utcme f ur cmplaint reslutin prcess, yu may refer yur dispute t the Securities Industries Dispute Reslutin Crprate (SIDREC): (a) via phne t : (b) via fax t : (c) via t : inf@sidrec.cm.my (d) via letter t : Securities Industry Dispute Reslutin Center (SIDREC) Unit A-9-1, Level 9, Twer A Menara UOA Bangsar N. 5, Jalan Bangsar Utama Kuala Lumpur 4. Yu can als direct yur cmplaint t the Securities Cmmissin f Malaysia ( SC ) even if yu have initiated a dispute reslutin prcess with SIDREC. T make a cmplaint, please cntact the SC's Investr Affairs & Cmplaints Department: (a) via phne t the Aduan Htline at : (b) via fax t : (c) via t : aduan@seccm.cm.my (d) via the nline cmplaint frm which is available at (e) via letter t:- Investr Affairs & Cmplaints Department Securities Cmmissin Malaysia N 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur 6

8 5. Members f the public can cntact BNMLINK and BNMTELELINK fr infrmatin, enquiries r redress in the areas f cnventinal and Islamic banking, insurance and takaful, advisry services fr small and medium enterprises, freign exchange administratin and ther matters under Bank Negara Malaysia's purview. If yur query r cmplaint is nt satisfactrily reslved by us, yu may cntact Bank Negara Malaysia LINK r TELELINK at: BNMLink Custmer Service Center Grund Flr, Blck D Jalan Dat' Onn Kuala Lumpur Tel : Website: bnmtelelink@bnm.gv.my NOT COVERED BY COMPENSATION FUND 6. Yu understand that yu are nt cvered by the Cmpensatin Fund established in accrdance with Part IV f the Capital Markets and Services Act Therefre, if yu suffer any mnetary lss as a result f any actins and/r missins by a directr, fficer r emplyee r representative f a registered persn such as Citibank in cnnectin with a DCA, yu have n rights against the Cmpensatin Fund. In respect f any mnetary lss related t any actins and/r missins by a directr, fficer r emplyee r representative f a registered persn such as Citibank, yu may ldge a cmplaint with Citibank:- (a) via phne ( ) (b) via fax ( ) (c) via t: malaysia.custmer.service@citi.cm (*attentin: fr nn-accunt related r nn cnfidential query and feedback nly) 13. Other Investment Linked t Derivatives Prducts available at Citibank Market Linked Investment Fr mre infrmatin, please speak t yur respective Relatinship Manager. Disclsures and Disclaimers All bligatins hereunder are payable slely at and by Citibank Berhad, subject t the laws f Malaysia and any ther applicable laws (including any gvernmental actins, rders, decrees and regulatins) whether due t the investr s cuntry f citizenship, dmicile, residence r taxpaying status and shall als be excused by ther events beynd its cntrl which prevent its perfrmance. Cnfidential Dcument: This dcument is nt an ffer t sell nr is it a slicitatin f an ffer t enter int a transactin and all expressins f pinin are subject t change withut ntice. The cntents f this dcument are cnfidential and intended slely fr the use by Citibank Berhad and the prspective investr t whm it is delivered. It is nt t be reprduced r distributed t any ther persn except t that prspective investr s prfessinal advisrs. The terms set frth herein are intended fr discussin purpses nly and are subject t the final expressin f the terms f the transactin in the applicable cnfirmatin advice which accmpanies a subscriptin f a Dual Currency Accunt. 7