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HSBC Investments
HSBC Capital Protected Plan and Capital Protected ISA Brochure Issue 8
Global Emerging Markets Special EditionIncorporating the Simplified Prospectus and Terms
Available for a limited periodSee our Fund Insert for relevant dates
April 2008
Simplified Prospectus containing:
1
How to contact us 2
About the Capital Protected Plan and Capital 3
Protected ISA
General Risk Factors 5
How does the Capital Protected Fund work? 6
Investing in the Capital Protected Plan and 7
Capital Protected ISA
Income and Withdrawals 9
Keeping in touch 10
Capital Gains Tax and Income Tax 11
ISA Transfers 12
Charges and Costs 13
Further Information 14
Terms and Conditions 17
2
Simplified Prospectus for the Capital Protected Plan and Capital Protected ISA
The Financial Services Authority is the independent financial
services regulator. It requires us, HSBC Trust Company (UK)
Limited, to give you this important information to help you
decide whether the Capital Protected Plan and Capital
Protected ISA is right for you. You should read this
document carefully so that you understand what you are
buying, and then keep it in a safe place for future reference.
This Simplified Prospectus should be read together
with the relevant Fund Insert. The Fund Insert forms an
integral part of the Simplified Prospectus.
This Simplified Prospectus provides information on the
Capital Protected Plan and Capital Protected ISA. These
invest in the HSBC Capital Protected Funds, which are
sub-funds of HSBC Specialist Investment Funds.
HSBC Specialist Investment Funds is an open-ended
investment company (OEIC) and a UCITS scheme registered
in England and Wales under registration number IC74.
It was incorporated on 4 August 2000.
This document contains important information to enable you
to make an informed choice about your investment.
Write to us at:
HSBC Trust Company (UK) Limited
Exchange Place, Poseidon Way,
Warwick CV34 6BY
Call us for general enquires on:
0800 289 505*.
Lines are open from 8am to 6pm Monday to Friday
(excluding public holidays).
Call us to make a withdrawal on:
0845 600 2215*. Lines are open 8am to 5pm,
Monday to Friday (excluding public holidays).
*To help us continually improve our service and in the interests of security, we may monitor and/or record your communications with us.
How to contact the Account Manager
About the Capital Protected Plan and Capital Protected ISA
3
What are the Capital Protected Plan and Capital Protected ISA?
The Capital Protected Plan and Capital Protected ISA
are investment accounts that allow you to make lump
sum investments to one of the HSBC Capital Protected
Funds.
The HSBC Capital Protected Funds are sub-funds of
HSBC Specialist Investment Funds, an open-ended
investment company (OEIC).
The Capital Protected Funds are collective investments.
Your money is pooled with that of other investors in
each Fund.
Your investment is used to buy Shares in the Fund.
The number of Shares you receive is dependent on
the amount you invest and the price of the Shares
at the time of your investment.
Within the Funds the Shares are held in the name of
HSBC Trust Company (UK) Ltd who will act as Account
Manager. You will be and will remain the beneficial
owner of the Shares.
What is the aim of the Capital Protected Funds?
The Capital Protected Funds aim to provide at the end
of each Capital Protected Period:
> Capital growth linked to an Index or Indices*
e.g. FTSE 100 Index;
and
> A protected minimum amount, which is the ‘Capital
Protected Amount’.
To achieve this aim, the Funds will invest in derivatives
during each Capital Protected Period. A derivative is a
financial arrangement the value of which is based on
the performance of other underlying assets e.g.
an index.
Outside of the Capital Protected Periods the Funds will
invest in cash deposits and money market instruments.
These are financial arrangements, which generally return
a fixed rate of interest for a specific term. These may
include Shares in other collective investment schemes.
For some Capital Protected Periods there may variations
in the features we offer. These may include an Early
Release Feature, a Minimum Return Level or a
Maximum Return Level.
You can find more information about the Capital
Protected Fund and any variations in the features that
are currently available for investment in the enclosed
Fund Insert.
*For simplicity, throughout the remainder of this document
we will refer to ‘Index or Indices’ as just ‘Index’.
What is the Capital Protected Amount?
For the initial Capital Protected Period your Capital
Protected Amount will be 100% of your original
investment plus any increase in the value of your
Shares in the Fund, up to the start of the Capital
Protected Period.
The Capital Protected Plan and Capital Protected ISA
are aimed at investors seeking the potential for
growth rather than income. The Funds do not have a
fixed term, however each Capital Protected Period
does.You should look to keep your investment
throughout each Capital Protected Period, which
typically lasts between five and six years.
If you invest without receiving advice we will
categorise you as a retail customer and treat you as
such in all our dealings with you in respect of this
investment. However, if you invest through a
Professional Adviser they will tell you how you have
been categorised. In this case your Professional
Adviser will explain your categorisation and any rights
you have to request a different category. The decision
to accept a request for recategorisation is at the
discretion of your Professional Adviser and/or us.
You can invest jointly in the Capital Protected Plan
with one other person. However, only individual
investors can invest in a Capital Protected ISA.
As a guide, we have risk rated the Capital Protected
Funds as cautious. This is because the Funds aim to
protect your capital.
This does not constitute investment advice and if you
have any doubts about the suitability of this
investment for your needs you should contact your
Financial Adviser.
What is an ISA?
An ISA is a tax efficient way of investing.
There are two types of ISA
> Stocks and Shares, or
> Cash.
The overall subscription limit per Tax Year is £7,200, of
which up to £3,600 can be subscribed to a Cash ISA.
You cannot subscribe to more than one of each type
of ISA per Tax Year
The Capital Protected ISA is a Stocks and Shares ISA.
4
What type of investor are the Capital Protected
Plan and Capital Protected ISA aimed at?
5
General Risk Factors
Please remember that Your Capital Protected Amount is
not guaranteed. During each Capital Protected Period
the Capital Protected Funds will invest in derivatives
offered by large financial institutions, known as
counterparties. While we believe that the institutions
are financially sound and will be able to meet their
obligations, in the event that they default on their
obligations your capital will be at risk and you may not
get back all of your Capital Protected Amount.
To help protect you from this risk, cash and other
secure investments (known as collateral) will be
deposited with independent financial institutions. This
collateral will cover 90% of the Fund’s liabilities.
In the unlikely event that the counterparties providing
the derivatives and the institutions holding collateral
both fail then you may not get back your Capital
Protected Amount. Please see the enclosed Fund Insert
for further details.
The value of the Shares can fall as well as rise.
If you cancel your Capital Protected Plan or Capital
Protected ISA within the cancellation period, you may
get back less than the amount you originally invested if
the market has fallen in that time.
If you sell some or all of your Shares during a Capital
Protected Period, their value may be significantly less
than the amount you originally paid for them.
If you sell part of your investment during a Capital
Protected Period the amount of your Capital Protected
Amount will be reduced.
Although the amount you originally invested is
protected at the end of a Capital Protected Period
please remember that inflation will reduce what you
could buy in the future with your investment.
If the Index does not rise then your investment will
not grow.
Past performance of the Index or any Funds is not a
guide to future performance or returns.
Where you transfer your ISA to us from another ISA
manager your investment will be transferred as cash and
the approximate time out of the market could be up to
30 days. During this time the market may move up or
down, resulting in potential loss of growth and/or income.
The sub-funds of HSBC Specialist Investment Funds
OEIC are not separate legal entities. Accordingly, if a
sub-funds assets are not sufficient to meet its liabilities,
the Authorised Corporate Director (ACD) may re-allocate
assets, liabilities, expenses, costs and charges between
sub-funds, including the Capital Protected Funds, in a
manner which would be fair to the investors of the
OEIC generally.
Tax practice and legislation could change in the future.
The preferential tax treatment of ISAs may not be
maintained in future.
Risk factors relating to specific events or actions are
also detailed in the relevant sections of this document.
These risks are also described in the full prospectus for
the HSBC Specialist Investment Funds OEIC. Copies of
the full prospectus are available on request free of
charge by contacting us.
How does the Capital Protected Fund work?
6
Each Capital Protected Fund follows an investment cycle:
The Limited Issue Period
Investments can only be made to a Capital Protected
Fund during a Limited Issue Period, which typically
lasts for ten to twelve weeks.
Throughout this period the Fund holds cash deposits
and other money market instruments, which may
include other collective investment schemes.
Each Capital Protected Fund has a limit on the amount
that can be invested in it. The ACD may have to close a
Fund early if this limit is reached. If this happens we
will return your application and payment in full to you,
or, if you are transferring an ISA to us, we will offer you
an alternative ISA investment with HSBC or another
ISA manager.
The Reconciliation Period
The Fund continues to hold cash deposits and other
money market instruments but during this time no
further Shares can be purchased.
The Capital Protected Period
At the start of the Capital Protected Period your Capital
Protected Amount is calculated. For the initial Capital
Protected Period this amount includes your original
investment, without any deduction for an initial charge,
plus any growth in the value of your Shares during the
Limited Issue Period and Reconciliation Period.
The Fund now invests in derivatives.
The starting level of the Index is taken which will later
be used to calculate any growth. The starting level may
be the average of a number of readings of the Index.
End of the Capital Protected Period
At the end of the Capital Protected Period the Fund
reverts to holding cash deposits and other money
market instruments.
The closing level of the Index is taken. Again this may
be the average of a number of Index readings.
The growth, if any, in the Index is calculated. At
that time a fixed percentage of any growth will be
taken into consideration, which may be less or
more than the actual growth. This is known as the
Participation Rate.
The final growth is calculated using the starting and
closing levels of the Index, the Participation Rate and
where relevant the Maximum Return Level or
Minimum Return Level. Any growth will then be
reflected in the price of the Shares.
Following this, the investment cycle may commence
again with another Limited Issue Period. We will write
to you about one month before the end of each Capital
Protected Period to explain your options. This will
include information about any further Capital Protected
Periods being offered for your Capital Protected Fund.
The specific details of the Capital Protected Fund
currently available for investment can be found in the
enclosed Fund Insert. This includes all relevant dates
and further information about how the starting and
closing Index levels are measured, the Participation
Rate and how the final growth is calculated, together
with examples of what you might get back.
Capital Protected Funds may contain an Early Release
Feature, a Maximum Return Level or a Minimum
Return Level. Where offered, details of these will be
found in the enclosed Fund Insert.
7
Investing in the Capital Protected Plan and Capital Protected ISA
What is the minimum investment?
The minimum lump sum investment amount is £3,000
for each Capital Protected Fund.
You cannot make monthly savings to the Capital
Protected Plan or Capital Protected ISA.
What is the maximum investment?
There is no maximum investment if you invest into a
Capital Protected Plan or if you transfer an ISA to us
from HSBC or another provider.
The maximum investment for a Stocks and Shares ISA
is £7, 200 per Tax Year.
Can I make additional investments?
Yes, you can make further investments only during
the same Limited Issue Period for each Capital
Protected Fund, at a minimum investment of £1,000.
Please send us a cheque with your written
instructions, quoting your Capital Protected Plan or
Capital Protected ISA account number.
For ISA investments you cannot exceed the maximum
amounts stated above.
You should be aware that we might restrict additional
investments if the Issue Limit has been reached.
How can I buy or sell Shares?
You can buy Shares during a Limited Issue Period by
completing and returning the relevant Application Form.
To make investments you can send us a cheque or
transfer money from your HSBC bank account.
To sell, you can send us a written instruction at any
time or call our withdrawals telephone number.
Please remember if you sell some or all of your Shares
during a Capital Protected Period then the amount you
receive may be significantly less than the amount you
originally invested. In addition, for partial withdrawals,
your Capital Protected Amount will be reduced.
HSBC Trust Company (UK) Limited will act as an
intermediary in making arrangements for the purchase
and sale of Shares for your Capital Protected Plan or
Capital Protected ISA by issuing instructions to the
ACD.
Instructions received by the ACD will be dealt at the
price calculated at the next valuation point. If the ACD
receives the instruction before 12 noon on a Business
Day, the deal will be priced at 12 noon that day. If the
instruction is not received by the ACD until after 12
noon, the deal will be priced at 12 noon on the
following Business Day.
For further information about the date we must receive
your Application Form, please refer to the enclosed Fund
Insert.
How many Capital Protected Funds can I invest in?
You can only invest in one Capital Protected Fund with
each Application Form.
You can hold more than one Capital Protected Fund.
Each Fund will be held under a separate account
number.
Can I change my mind about my investment?
We will send you a reminder of your right to cancel
after your Shares have been purchased.
You have the right to cancel your contract with us
within 14 days after you receive the cancellation notice.
If you cancel within the 14-day period you will not incur
an initial charge. If you wish to cancel you need to
send your written instructions to:
HSBC Trust Co (UK) Ltd
Exchange Place
Poseidon Way
Warwick
CV34 6BY
If the value of Shares has fallen in this period, you may
receive back less than your original investment. This
is because you will receive the initial charge and the
current market value of the Shares, which may have
fallen since you invested.
If the value of Shares has risen in this period, you will
only receive back your original investment.
If you choose not to exercise your right to cancel, you
will be subject to all investment risks as detailed in this
document. The relevant initial charge will be incurred
and will not be refunded to you if you later withdraw
your investment.
8
Is interest applied to cash awaiting investment?
When you invest in a Capital Protected Plan or Capital
Protected ISA the cash awaiting investment is
deposited as client money in a client money account
with HSBC Bank plc.
Interest earned on this account will be credited to your
Capital Protected Plan or Capital Protected ISA
quarterly. The interest will be used to purchase
additional Shares during Limited Issue Periods. At all
other times the interest will remain as cash in your
Capital Protected Plan or Capital Protected ISA.
In the case of the Capital Protected Plan, interest will
normally be credited after deduction of basic rate
income tax (currently 20%), unless you are eligible to
receive gross interest and, where necessary, have
provided us with a valid declaration. For non UK
residents, we do not accept R105 declarations.
In the case of an ISA, interest will be credited net of a
flat rate charge of 20% of the gross interest, which is
paid to HM Revenue & Customs.
9
Income and Withdrawals
Can I take an income and how much income
will be accumulated?
Any income received by each Capital Protected Fund
is reflected in the price of the Shares and not paid out
to you.
This type of share is known as an accumulation share.
As the Capital Protected Funds aim for capital growth
rather than income, any income is likely to be
minimal and will only arise when the Funds are
invested in cash deposits or other money market
instruments.
Any income will be accumulated within each Fund
on 15 November each year.
Can I take money out?
You can sell all or some of your Shares at any time.
Please remember that the Capital Protected Funds
aim to provide the Capital Protected Amount and
participation in any Index growth only at the end
of each Capital Protected Period.
If you cash in all or part of your investment during
a Capital Protected Period then you will receive an
amount equal to the value of the Shares you are
selling. This will be calculated using the current
share price. This may be less than the price the
Shares were bought at.
Please note that the share price used may be
adjusted; please refer to the ‘Charges and Costs’
section for further details.
If you cash in part of your investment then your original
Capital Protected Amount will be reduced. Your new
amount will depend on the number of remaining
Shares you hold.
If your investment is closed during a Capital Protected
Period then the amount you receive may be less than
the amount you originally invested.
Please note that if you withdraw part or all of your
Capital Protected ISA, the future tax benefits relating
to holding this amount in an ISA will be lost.
If you hold more than one Capital Protected Plan or
Capital Protected ISA then please specify which one
you wish to make a withdrawal from.
The minimum withdrawal amount is £500 per account.
You must retain a minimum amount of £3,000 in each
Capital Protected Fund, based on the value of your
Shares at the time the withdrawal is made. We reserve
the right to close your investment if you don’t maintain
the minimum amount.
For instructions on how to make a withdrawal please
refer to the ‘How can I buy and sell Shares?’ section.
We will normally send you the proceeds from the
withdrawal within seven Business Days.
We will write to you to confirm the number of Shares
that have been sold and the price used for the sale.
10
Keeping in touch
What will I receive from you?
For all investments we will write to you to confirm how
many Shares have been purchased for you and the
price you have paid. We will also confirm the number
of Shares purchased with the proceeds from a
transferred ISA.
You will also receive a letter shortly after the start of
each Capital Protected Period confirming your Capital
Protected Amount and the starting level of the Index.
You will not receive any share certificates in respect of
your investment.
How can I find out how much my Shares are
worth?
The price of a share is calculated by reference to the
Net Asset Value (NAV) of the Capital Protected Fund
to which it relates. An explanation of how the NAV
is calculated is given in the full company prospectus.
Please contact us to obtain a copy free of charge.
Fund prices are published on the Internet, visit
www.hsbcinvestments.co.uk and click on “Individual
Investors” and “Funds & Prices”. To look up a price and
calculate the value of your investment, you will need to
know the name of the Capital Protected Fund you have
invested in and how many Shares you hold.
Alternatively you can telephone us for an up-to-date
valuation. Please refer to the ‘How to contact us’
section.
How am I kept informed about my investment?
We will send you a half-yearly statement by post within
five weeks of 5 April and 5 October each year.
We will also write to you about one month before
the end of each Capital Protected Period to explain the
options available to you. This will include information
about any further Capital Protected Periods being
offered for your Capital Protected Fund.
11
Capital GainsTax and IncomeTax
Will there be Capital Gains Tax to pay?
Capital Protected Plans
You may have to pay Capital Gains Tax on any gains you
make when you sell your Shares if you exceed your
annual exemption limit.
This also applies if you are selling Shares to switch into
other funds or into an ISA.
Capital Protected ISAs
All gains made by investors are free from
Capital Gains Tax.
Do I have to pay Income Tax on my investment?
As the Capital Protected Funds aim for capital growth
rather than income, any income is likely to be minimal.
Any income from the Funds is accumulated after
the company (OEIC) has paid Corporation Tax
where required.
Income from the Funds is classed as ‘dividends’.
Capital Protected Plans
Dividends are accumulated with a tax credit equal to
one ninth of the net payment. Your income for tax
purposes is the sum of the net interest and the tax
credit.
We will send you a tax voucher each year showing the
amount of income accumulated and the attached tax
credit in respect of the Shares you hold in the Capital
Protected Plan. The voucher will also show details of
any interest credited on uninvested cash received in
the previous Tax Year together with details of any
income tax deducted at source from such interest.
In respect of the dividend tax credits the position is
as follows:
Non taxpayers cannot reclaim the tax credit but will
have no further tax to pay.
Starting rate taxpayers and basic rate taxpayers will
have no further tax to pay.
Higher rate taxpayers will have further tax to pay equal
to one quarter of the net payment.
Capital Protected ISAs
You will have no Income Tax to pay.
Tax credits attached to dividend distributions cannot
be reclaimed.
What is the basis for tax information?
This information is based on our understanding
of current law and HM Revenue & Customs practice
at the time of printing. Both law and practice may
of course change.
You should remember that the tax law applicable
depends on your own situation and residency status.
If you are in any doubt on this you should seek
professional advice.
12
ISA Transfers
Can I transfer an ISA to the Capital Protected ISA?
Yes, we accept transfers of existing Stocks and Shares
and Cash ISAs held with either HSBC or another ISA
manager during the Limited Issue Period into the
Capital Protected ISA. If you are transferring a Cash
ISA to the Capital Protected ISA you must be 18 years
of age or over.
For further information about the dates by which we
must receive instructions from you, please refer to the
enclosed Fund Insert.
If you wish to transfer an ISA to us please complete
our ISA Transfer Form enclosed with this brochure and
send it to us.
Once we have received the initial transfer value we
will not accept any further payments, for example,
residual income, from your existing ISA manager.
Where you transfer your ISA to us from another ISA
manager, your investment will be transferred as cash,
and the approximate time out of the market could be
up to 30 days. During this time the market may move
up or down, resulting in potential loss of growth and
income. Your existing manager may also charge you
for transferring. For full details on any charges that will
be applied, please speak to your current ISA manager.
If you transfer your current Tax Year’s Cash ISA
subscriptions to the Capital Protected ISA they will be
treated as if those subscriptions had never existed.
Instead the transferred subscriptions will be treated as
if you had subscribed that money directly to the Capital
Protected ISA as a Stocks and Shares ISA subscription.
Can I transfer my Capital Protected ISA to another
ISA?
Yes you can transfer all or part of your Capital
Protected ISA to another Stocks and Shares ISA at any
time by telling us in writing. The new ISA manager
must agree to the transfer.
If you wish to transfer a current Tax Year’s Capital
Protected ISA, the whole year’s account must be
transferred.
Once we have received your instructions and written
acceptance by your new ISA manager, we will sell the
Shares in your Capital Protected ISA and transfer the
proceeds to your new ISA manager.
Please remember if you sell some or all of your Shares
during a Capital Protected Period then the amount
transferred may be significantly less than the amount
you originally invested.
In addition, if you transfer part of your Capital Protected
ISA, your Capital Protected Amount will be reduced.
Your new amount will depend on the number of
remaining Shares you hold.
Where applicable, we will write to you to confirm the
number of Shares that have been sold within your
Capital Protected ISA and the price used for the sale.
13
Charges and Costs
How will charges and expenses affect
my investment?
You buy and sell Shares in a Capital Protected Fund
at a single price.
Where an initial charge is taken, this is deducted from
your investment before your Shares are purchased.
An annual management charge, which is a
percentage of the Fund value, may be deducted, only
during the Capital Protected Period. Any annual
management charge is calculated daily, it is reflected
in the Share price and is deducted monthly. For
details of any annual management charge, please
see the enclosed Fund Insert.
A Capital Protection Charge will be applied at the
start of any further Capital Protected Period. This is a
percentage of the value of the Fund and will be
reflected in the Share price.
Annual management charges and any Capital
Protection Charges will be taken from the income of
the Capital Protected Funds. However, if there is
insufficient income to meet the charge, any deficit will
be taken from the capital of the Funds. This could have
the effect of limiting capital growth or eroding capital if
there is insufficient growth. Any annual management
charge will be taken via deductions of assets within
the Fund and not by cancellation of Shares.
An exit charge may be applied if you cash in your
investment, or transfer your Capital Protected ISA to
another ISA manager before the end of the Capital
Protected Period.
The charges specific to the Capital Protected Fund
currently available for investment are detailed in the
enclosed Fund Insert.
In the Fund Insert you will also find examples of how
the charges may affect a lump sum investment to a
Capital Protected Plan, or to an Capital Protected ISA.
The figures quoted are subject to change.
The example illustrations also show a Reduction in Yield
(RIY) figure for each Capital Protected Fund. The RIY is
another way of expressing the charges of the Fund.
Other expenses such as depository fees, custody
fees, audit fees, dealing costs and any interest on
borrowing are paid for out of the initial charge
or the Capital Protection Charge where applicable.
The estimated Total Expense Ratio (TER) shows the
annual operating costs of a fund and includes any
annual management charge. All Funds covered
under European Legislation must highlight the TER to
help customers compare the annual cost of operating
different Funds. For details of the TER, please see
the enclosed Fund Insert.
The ACD may adjust the share price used to value the
Shares you are buying or selling. As the Funds are single
priced and the share price reflects the mid price value
of assets held by each Fund, the price does not take
account of the actual cost if the ACD has to sell assets
before the end of the Capital Protected Period. To
account for this, the ACD may adjust the share price.
This is known as a dilution adjustment or swinging single
pricing. We expect that a dilution adjustment will only be
made if you sell some or all of your Shares during a
Capital Protected Period. Neither we, nor the ACD, will
benefit from applying a dilution adjustment as it serves
only to protect the continuing investors in the Funds.
The Portfolio Turnover Rate (PTR) is a measure of how
much buying and selling a fund is doing. Due to the nature
of these Funds it is not appropriate to quote a PTR.
14
Are there any other costs?
On certain dealings on Shares in an OEIC, Stamp Duty
Reserve Tax (SDRT) may be payable where there is a
transfer in beneficial ownership of Shares. SDRT is a
tax that is usually charged to the Fund.
Where an investor places a large deal, which is a deal
having a consideration of £15,000 or more, a direct
SDRT charge may be levied on such an investor.
It is not possible to accurately predict how frequently
an SDRT provision will be made as it is directly related
to inflows and outflows of monies from a Fund but any
SDRT due will be paid for out of the initial charge.
How much will any advice cost?
You may decide to invest in the Capital Protected Plan
or Capital Protected ISA on the recommendation of
your Financial Adviser.
If you have invested through a Financial Adviser, we will
pay them commission. Your Financial Adviser will be able
to supply you with details. If commission is paid, it will be
paid out of the charges already covered in this document.
No additional charge will be made to pay the commission.
If you have any further questions, please ask your
Financial Adviser or call our Investor Services Team free
on 0800 289 505.
Lines are open 8am to 6pm Monday to Friday (excluding
public holidays). To help us continually improve our
services and in the interest of security, we may monitor
and/or record your communications with us.
Law
This contract and any proceedings, as well as our
dealings with you up until you enter into a contract,
will be governed by the law of England and Wales.
English courts will have non-exclusive jurisdiction over
all disputes arising in connection with this contract.
The contract and all communication during the course
of the contract will be in English.
How to complain
If you are unhappy in any way with our products or
services then please let us know. You can ask for a copy of
our leaflet ‘Listening to your comments’. This may help you
to present your concerns to us.
If we cannot resolve your complaint in the first instance,
you can refer it to:
Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR
Telephone: 0845 080 1800
Email: [email protected]
The Financial Ombudsman Service will generally review
complaints from retail customers. However, their criteria
for reviewing complaints may mean that even if you have
been categorised by a provider of products and services as
a retail customer they may not regard you as an eligible
complainant.
Complaining to the Ombudsman will not affect your legal
rights. A written copy of our complaint procedure is
available on request.
Further Information
15
Compensation
The ACD and HSBC Trust Company (UK) Limited are
members of the Financial Services Compensation
Scheme. You may be entitled to compensation from
the Financial Services Compensation Scheme if HSBC
Trust Company (UK) Limited or the ACD cannot meet
their obligations.
This depends on the type of business and the
circumstances of the claim. Most types of investment
business are covered for 100% of the first £30,000 and
90% of the next £20,000, so the maximum compensation is
£48,000 per person.
Further information about compensation arrangements
is available from the Financial Services Compensation
Scheme at, 7th Floor, Lloyds Chambers, Portsoken Street,
London E1 8BN (telephone 0207 892 7300), or through
their website, www.fscs.org.uk
HSBC Policy on Conflicts of Interest
The HSBC Group is a global organisation which provides a
wide range of financial services. As such, it, or a company
with whom it has an association (“HSBC”), may from time
to time have interests which conflict with its clients’
interests or with the duties that it owes to its clients.
These include conflicts arising between the interests of
HSBC, its associates and employees on the one hand and
the interests of its clients on the other and also conflicts
between clients themselves.
HSBC has established procedures which are designed to
identify and manage such conflicts. These include
organisational and administrative arrangements to
safeguard the interests of clients. A key element of this
policy is that persons engaged in different business
activities involving a conflict of interest must carry on
those activities independently of one another.
Where necessary, HSBC maintains arrangements which
restrict the flow of information to certain employees in
order to protect its clients’ interests and to prevent
improper access to client information.
HSBC may also deal as principal for its own investment
account and may be matching transactions with another
client. Procedures are in place in order to protect the
client’s interest in this instance.
In some cases, HSBC’s procedures and controls may not
be sufficient to ensure that a potential conflict of interest
does not damage a client’s interests. In these
circumstances, HSBC may consider it appropriate to
disclose the potential conflict to the client and obtain the
client’s formal consent to proceed. However, HSBC may
decline to act in any circumstance where there is residual
risk of damage to the interests of any client.
You may have further questions which relate to the
underlying procedures within HSBC. In such cases you
should contact us.
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Prospectus and further information
Copies of the following documents are available free of
charge by contacting us:
The full prospectus for HSBC Specialist Investment
Funds OEIC
The latest annual and half-yearly Reports and Accounts
for HSBC Specialist Investment Funds OEIC
Further information about the Capital Protected Funds
or HSBC Specialist Investment Funds OEIC.
Voting
The Funds or OEIC may hold shareholder meetings.
Please let us know in writing if you wish to attend
meetings and/or vote. We will then notify you of all such
meetings and how you can vote in advance. We reserve
the right to make a charge for this service.
Names behind your investment
Account Manager
HSBC Trust Company (UK) Limited, 8 Canada Square,
London E14 5HQ. HSBC Trust Company (UK) Limited is
authorised and regulated by the Financial Services
Authority and is entered on the Financial Services
Authority register as number 119297. Its main business is
the provision of trustee services and administering
investments.
Authorised Corporate Director
HSBC Investments (UK) Limited’s principal business
activities are to act as Authorised Corporate Director for a
range of Open-Ended Investment Companies, as Manager
for a range of Unit Trusts, and as an Investment Manager
and Adviser. HSBC Investments (UK) Limited is authorised
and regulated by the Financial Services Authority. HSBC
Investments (UK) Limited is entered on the Financial
Services Authority register as number 122335. It is also a
member of the Investment Management Association.
Depository
State Street Trustees Limited, 525 Ferry Road,
Edinburgh EH5 2AW. State Street Trustees Limited is
authorised and regulated by the Financial Services
Authority and is entered on the Financial Services
Authority register as number 186237.
Auditors
KPMG Audit plc, Saltire Court, 20 Castle Terrace,
Edinburgh EH1 2EG.
Custodian
HSBC Bank plc, Institutional Fund Services Europe,
Level 27, 8 Canada Square, E14 5HQ. HSBC Bank plc is
authorised and regulated by the Financial Services
Authority and is entered on the Financial Services
Authority register as number 114216.
Investment Manager
HSBC Investments (UK) Limited, 78 St James’s Street,
London SW1A 1EJ. Registered office: 8 Canada Square,
London E14 5HQ. HSBC Investments (UK) Limited is
authorised and regulated by the Financial Services
Authority. HSBC Investments (UK) Limited is entered on
the Financial Services Authority register as number
122335. It is also a member of the Investment
Management Association.
Regulator
The OEIC described in this document is authorised and
regulated by the Financial Services Authority,
25 The North Colonnade, Canary Wharf, London E14 5HS.
Telephone: 0845 606 1234.
Email: [email protected]
The Financial Services Authority register can be found at
www.fsa.gov.uk/register/home.do
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Terms and Conditions
Important Information
These are the Terms for your Capital Protected Plan and CapitalProtected ISA. Please read them carefully and let us know if youhave any queries. These Terms will come into force on the EffectiveDate. The terms of the Application Form, Simplified Prospectusand accompanying Fund Insert, also form part ofthese Terms.
1. Definitions
In these Terms:
“Account” means a Capital Protected Plan or Capital ProtectedISA opened in accordance with these Terms or any previousterms and conditions, your Application Form, the Regulations andthe Rules;
“Account Investments” means the Shares and cash held in anAccount;
“Account Manager”, “we”, “us”, “our” or “ourselves” meansHSBC Trust Company (UK) Limited which is authorised andregulated by the FSA;
“ACD” means the Authorised Corporate Director of a Fund;
“Administrative Office” means Exchange Place, Poseidon Way,Warwick CV34 6BY, or such other address notified to you fromtime to time;
“Application Form” means the properly completed applicationform(s) used to open an Account or such other document ormethod of application as is acceptable to us;
“Associated Company” means any holding company or ours ora subsidiary of any such holding company (as defined in section1260 Companies Act 2006 as amended or replaced from time totime);
“Bank” means HSBC Bank plc, an Associated Company;
“Best Possible Result” means the best possible result for apurchase or sale of Shares in order to comply with our bestexecution obligations under the Rules;
“Business Day” means any day on which we are open forbusiness;
“Capital Protected Amount” means an amount equal to 100% ofyour original investment plus any increase in the value of yourShares in the Fund, up to the start of the Capital Protected Period;
“Capital Protected Charge” - means a charge that is taken fromthe Fund at the start of the second and any subsequent CapitalProtected Periods. It will be a percentage of the value of the Fundon the day it is taken;
“Capital Protected Fund” means one of the sub funds of theHSBC Specialist Investment Funds;
“Capital Protected Period” means the period during which thecapital invested in the relevant Fund is protected;
“Capital Protected Period End Date” means the final BusinessDay of the Capital Protected Period or, for Capital ProtectedPeriods which offer an Early Release Feature, the date on whichsuch Early Release Feature is exercised, if appropriate;
“Client Money Rules” means the rules contained withinChapter 4 of the FSA’s Client Assets Sourcebook as amended orreplaced from time to time;
“Closing Date” means the date as set out in the Fund Insertapplicable to your Account by which new applications into anoffer must be received by the Administrative Office. Transfer-in
dates and switch dates are separate dates and specifiedseparately in the Fund Insert;
“Early Release Feature” means if the relevant index has risen toor above the stated early release level on a specified date as setout in the relevant Fund Insert, the Capital Protected Period willcease and the investor will receive the fixed percentage returnstated in the relevant Fund Insert;
“Effective Date” means the Business Day upon which weaccept both your Application Form and the initial Payment;
“Execution Policy” means our internal policy setting out how wewill deliver the Best Possible Result for purchases and sales ofShares
“FSA” means the Financial Services Authority or its successororganisation;
“Fund” means one or more of the capital protected sub-fundsthat we offer from time to time;
“HSBC Group” means HSBC Holdings plc and its subsidiaries,associated and affiliated companies;
“Capital Protected ISA” means an ISA opened with us inaccordance with these Terms;
“Capital Protected Plan” - means an Account, opened with Usin accordance with these Terms, that is not an ISA and does notbenefit from the same tax advantages as an ISA;
“ISA” means an Individual Savings Account opened under theregulations;
“Issue Limit” means the limit up to which Shares will be issuedin the relevant Fund;
“Limited Issue Period” means any period during which the Fundwill issue Shares as set out in the Simplified Prospectus;
“Maximum Return Level” - means the maximum amount ofgrowth that can be achieved at the end of the Capital ProtectedPeriod expressed as a percentage of the Capital ProtectedAmount;
"Minimum Return Level" means the minimum amount ofgrowth that can be achieved at the end of the Capital ProtectedPeriod expressed as a percentage of the Capital ProtectedAmount;
"Participation Rate" means a predetermined percentage of anygrowth in the Index after final averaging;
“Payment” or “Payments” means any amount received fromyou, or from another ISA manager on your behalf, for investmentin your Account;
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“Receipts” means any cash balance and/or interest held on yourbehalf in your Account;
“Regulations” means the Individual Savings Account Regulations1998, as amended or replaced and any other applicable statutesand regulations;
“Rules” means the rules of the FSA that apply to your Account;
“Shares ” means shares in the Fund;
“Simplified Prospectus” means the simplified prospectus(incorporating the Fund Insert) relevant to the Fund;
“Tax Year” means a year beginning on 6 April and ending on thefollowing 5 April;
“Terms” means these terms and conditions;
“you” or “your” means the person (or persons) whose name,address and other particulars appear in the relevant ApplicationForm.
2. Appointment
2.1 You appoint us as the Account Manager to manage yourAccount in accordance with these Terms, your ApplicationForm, the Regulations and the Rules.
2.2 You authorise us to receive interest payments and otherentitlements accruing in respect of your Account.
3. Cancellation
3.1 We will send you a reminder of your right to cancel. Onceyou receive this you will have 14 days to notify us if youwish to cancel your Account.
3.2 If you exercise your right to cancel, we will sell all theShares in your Account and, subject to the remainder ofClause 3 your Payment will be returned to you WITHOUTINTEREST.
3.3 If the value of your Account Investments has fallen as aresult of market movement, your Payment will be reducedby this amount.
3.4 In the case of a Payment made by transferring an existingISA from another ISA manager, if you exercise your right tocancel:
(i) we will sell all the Shares in your Account relating tothe Capital Protected ISA and hold your Payment subject to any deduction in accordance withClause 3.3, as cash in your Account until we receive your further instructions;
(ii) if your further instructions are not received within 30Business Days, we reserve the right to return yourPayment to you less any deduction calculated inaccordance with Clause 3.3 WITHOUT INTEREST;
(iii) if we return your Payment to you, in accordance withClause 3.4(ii), this will result in a loss of the taxbenefits relating to holding your Payment within an ISA.
3.5 If you choose not to exercise your right to cancel, you willbe subject to all investment risks and charges as detailedin the Simplified Prospectus.
4. Management
4.1 The Fund is subject to a minimum investment limit. Thelimit is as stated in the current Simplified Prospectus andis available on request. On giving you 30 days’ notice inwriting, we may change the minimum investment limits.
4.2 Payments will be used to purchase Account Investments.4.3 Receipts and other monies pending investment or
payment to you, will be deposited as client money in aclient money account with the Bank.
4.4 Except as stated in Clause 3, interest earned on moneyheld in a client money account will be credited to yourAccount quarterly in March, June, September andDecember. Interest is variable and is paid at 2.5% belowthe Bank of England Base Rate.(i) In the case of the Capital Protected Plan, interest will
normally be credited after deduction of income tax (currently 20%), unless you are eligible to receive gross interest and, where necessary, have provided us with a valid declaration. Please note that we do not accept R105 declarations for non UK residents.
(ii) For Capital Protected ISAs interest will be creditednet of a flat rate charge of 20% of the gross interest,which is paid to HM Revenue & Customs.
(iii) If possible, Receipts will be invested in the Fund towhich they relate. If not, they will be held as cash inthe client money account awaiting investment orpayment to you.
(iv) If you terminate your Account, withdraw all of yourAccount; or transfer your ISA to another ISA manager, once the principal payment is made, we willnot pay you any interest on this payment or on anyfurther Receipts (for example residual distributions) that may be received into your Account.
(v) For partial withdrawals or partial transfers to anotherISA manager, once the principal payment is made, wewill not pay you any interest on this payment.
4.5 We shall be entitled to deduct an amount from theAccount necessary to discharge any obligations orliabilities that may be due from you at any time. This couldinvolve selling any Account Investments that we maychoose, or deducting money from any future Receipts.These may include any outstanding tax liabilities orcharges.
4.6 We or any Associated Company may aggregate anytransaction for you with those of other investors althoughthis may result in a less favourable transaction price thanmight have been achieved had the transaction beeneffected separately. In the case of Shares this may resultin a dilution adjustment being applied on the purchase orrepurchase of Shares by the ACD in order to protect theinterests of the remaining investors in the Fund.
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5. Delegation
5.1 We may delegate any of our functions or responsibilitiesunder these Terms to any person however, before doingso and from time to time thereafter, we will satisfyourselves that such person is competent to carry outthose functions or responsibilities.
6. Appointment of replacement manager
6.1 By giving you at least 30 days’ written notice, we mayappoint a duly authorised Associated Company in ourplace to manage the Account in accordance with theseTerms.
7. Material Interests
7.1 We will always try and act in your best interests incarrying out any transaction for your Account.
7.2 However, in some circumstances we may, without priorreference to you, (and without having to account to you forany benefit received as a result) carry out any transactionfor your Account even though:(i) a conflict may arise between our interests or that of
any of our customers and our duty to you; or(ii) we act on our own behalf or as agent of an
Associated Company; or(iii) we act as agent for you and for another party to the
transaction (including an Associated Company); or(iv) it relates to a security, the issue, offer or sale of
which has been underwritten, managed or arrangedby an Associated Company within the previoustwelve months; or
(v) we act for more than one investor (including you)collectively.
8. Communications
8.1 All communications relating to your Account must be sentto us in writing at our Administrative Office, unless weadvise otherwise within these Terms.
8.2 You will be deemed to have received any communicationsfrom us on the third Business Day after posting.
8.3 You must promptly advise us of any change in any of theinformation we hold in respect of your Account.
8.4 We will notify you in writing, if by reason of any failure tosatisfy the provisions of the Regulations;(i) your Account (or any part of it) has or will become void; or (ii) you will otherwise lose any tax relief as a result of an
invalid Payment having been made.As soon as practicable afterwards we shall write to youwith details of any corrective action taken or details of anyoptions available to you.
9. Buying and Selling Shares
9.1 We will act as an intermediary in making arrangements forthe purchase and sale of Shares for your Account.
9.2 You can only purchase Shares during a Limited IssuePeriod.
9.3 We will normally carry out instructions for the purchase orsale of Shares within three Business Days of our receiptof such instructions.
9.4 You agree and confirm that for such time as we areappointed as the Account Manager, you will be deemed to have consented to: (i) our Execution Policy (as such term is defined in our
Best Execution Disclosure Statement);(ii) the execution of your instructions for the purchase or
sale of Shares outside a regulated market ormultilateral trading facility (as such terms are defined inthe Rules).
10. Custody (safeguarding and administering assets)
10.1 You will be, and will remain, the beneficial owner of yourAccount Investments. However, the title to any Shares andcash in your Account will be registered in our name or inthe name of an Associated Company as our nominee.
10.2 We have appointed the Bank as our custodian.10.3 Your Account Investments will be registered with
investments made by other investors in the same name.This means that your individual Shares may not beidentifiable by physical or electronic documentation.
10.4 If we or a nominee default, any unreconcilable shortfall inthe Account Investments registered in the same namemay be shared pro rata among all investors whoseinvestments are so registered.
10.5 We will accept liability for the negligence, fraud or wilfuldefault (but not insolvency) of any Associated Companyacting as custodian or nominee including their employeesor agents acting pursuant to these Terms.
10.6 Documents of title (if any) for the Account Investmentswill be held by us or as we direct.
10.7 You may not use your Account Investments as security for a loan.
11. Investment Objectives and Restrictions
11.1 Your objective is to invest in Shares in the Fund. Youcannot hold cash in your Account unless it is awaitinginvestment or payment to you.
12. Closing the Fund
12.1 The Fund may be closed. We will give you at least 30days’ written notice explaining why with details of theoptions available to you.
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13. Charges
13.1 The charges associated with your Account are set out inthe Simplified Prospectus and/or these Terms. If theamount, rate of, or basis of any charge increases at anytime we will give you at least 30 days’ prior written notice.Charges will only be changed for the following validreasons;• to reflect an increase in charges imposed by the ACD of
the Fund;• to reflect changes or anticipated changes in costs
associated with changes in relevant market conditions,changes in technology, changes in the costs we pay toothers, changes in inflation and/or a change to the Fund;
• if charges generally increase across the marketplace;• to reflect any of the valid reasons stated in clause 22.
13.2 We may charge you or deduct from your Account:(i) £15 for providing a duplicate of information that has
previously been supplied to you; and(ii) £10 on each occasion you wish to exercise your right
to vote in accordance with Clause 15.13.3 On termination or transfer of the Account any fees due to
the date of termination or transfer will be payable by you.We will deduct any such fees from your Account.
14. Statements
14.1 We will send you a half-yearly statement and a valuationof your Account as at or near to 5 April and 5 October.This will be sent to you within five weeks of the relevantdate.
14.2 The statement will show Payment(s), sales, purchases,fees, Receipts and withdrawals made since the date ofthe previous statement or the commencement of yourAccount.
14.3 The valuation will be based on the selling price of Sharesbut it will not include any measure of performance.
14.4 We will also send you an investment report that willprovide a market summary, information relevant to yourAccount and information on our other investmentproducts.
14.5 If you have a Capital Protected Plan, each year you will be sent a summary of all distributions received in respect of Shares in the Capital Protected Plan. Thesummary will also include details of any interest credited on uninvested cash in the previous Tax Year and any taxdeducted at source from such interest. This will be sentwithin ten weeks after the end of the previous Tax Year.
15. Voting and Fund Information
15.1 If you ask us, we will arrange for you to:(i) receive copies of the annual and interim reports and
accounts last issued in respect of the Fund; and(ii) receive a copy of the relevant prospectus or
equivalent document; and(iii) attend meetings which holders of the Shares are
entitled to attend; and(iv) exercise the voting rights in respect of Shares held;
and(v) receive any other information issued in respect of the
Fund to investors in addition to the documents in this Clause.
15.2 If you ask for copies of the reports and accounts, shortversions will be issued as standard. A specific requestmust be made to our Administrative Office for longversions.
16. Termination
16.1 On termination, there may be some outstandingtransactions. We will continue to operate your Accountuntil they have been completed. Your Account will thenbe closed.
16.2 Termination by youYou may terminate your Account at any time by writing to our Administrative Office. Alternatively, you can transfer into another fund that we offer but in order to do this you will have to terminate your Account. You will need to agree to any terms and conditions that apply to the new fund. Usually, within seven Business Days of receipt of your instructions, we will sell any Shares held on the Account and:(i) pay you the value of your Account; or,(ii) in the case of a fund transfer, use the sale proceeds
to purchase Shares in the new fund.You can stipulate an alternative time period in which wewill carry out your instructions provided such period is notless than seven Business Days.
16.3 Termination by us(i) We may terminate your Account at any time. We
would not normally do this unless, for example, thereis fraud or suspected fraud or you have breached theterms of this Agreement. We will normally give you30 days’ written notice of termination. As soon asreasonably practicable thereafter we will, subject toClause 4.5, transfer the value of your Account to you.
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16.4 Termination on Death(i) Sole investors
(a) The Account will terminate on your death,however your personal representatives shouldprovide proof of the date of your death and oftheir appointment. Once we receive such proof asis acceptable to us, we will deal with the AccountInvestments in accordance with the instructionsof your personal representatives, who willbecome subject to these Terms.
(b) The tax benefits of an ISA cease from date ofdeath.
(ii) Joint investorsIf you have a joint Capital Protected Plan, in the event of the death of one of the parties, and upon production of such proof of death as we may reasonably request, we will transfer the Capital Protected Plan into the survivor’s sole name subject to any rights which we or a third party may have. The Account will continue tobe subject to these Terms.
17. Transfer
17.1 You may transfer ISAs held with us or another ISA manager to a Capital Protected ISA. Where appropriate, we will contact the ISA manager(s) concerned on your behalf and effect the necessary transfers.
17.2 All transfers to the Capital Protected ISA must be made incash. We must receive the Payment during the LimitedIssue Period and by the date specified in the SimplifiedProspectus. We will not accept any further moneyincluding residual income from the previous ISAmanager(s).
17.3 At your written request, and within the time you stipulate(subject to a minimum period of seven Business Days) wewill transfer all or part of your Capital Protected ISA, withall rights and obligations of the parties to itto another ISA manager. Provided they agree to such atransfer this will be done within the time you stipulate, While we will normally carry out the transfer within thetime you stipulate there may be occasions when thetransfer will take longer to complete due to circumstances beyond our control.
17.4 If you do not stipulate a time our Administrative Office willnormally carry out your instructions within seven BusinessDays of receipt.
17.5 When we receive your request to transfer, we will sell anyShares in your Capital Protected ISA and will transfer the cash value of your Account to the ISA manager you have chosen.
18. Withdrawal
18.1 You may withdraw all or part of your Account at any time.Normally, within seven Business Days following receipt ofyour instructions we will sell Shares in the Account andpay you the amount of the withdrawal.You can stipulate an alternative time period, provided suchperiod is not less than seven Business Days.
18.2 When making a withdrawal, you must specify theAccount (Capital Protected Plan or Capital Protected ISA )you wish the money to be withdrawn from. If you do notspecify which Account the money is to come from, wewill not be able to carry out the transaction.
18.3 We have a minimum withdrawal amount and minimumbalance requirement for each Account. These are shown in the Simplified Prospectus. If the minimum balance is not maintained we may terminate the Account. The minimum balance is based on the selling price of the Shares at the time any withdrawal is made.
18.4 We can amend the minimum withdrawal amount and/orthe minimum balance requirement at any time. We will giveyou at least 30 days’ prior written notice of anyamendment.
19. Capital Protected Period End Date
19.1 We will write to you at least one month before the CapitalProtected Period End Date. We will give you the options available at the CapitalProtected Period End Date which will include some or allof the following;• returning to you the value of the Shares ,• transferring your Capital Protected ISA to another ISA
manager or• offering you the opportunity for your investment to
continue in the Fund for another Capital ProtectedPeriod.
19.2 If you fail to give us any instructions by the timestated in the letter then we will automatically retainyour investment in the Fund for a further CapitalProtected Period (subject to clause 12).
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20. Complaints and Compensation Rights
20.1 You should address any complaints in connection with theAccount to HSBC Trust Company (UK) Limited at ourAdministrative Office. A copy of our complaints procedureis available on request.
20.2 If you are not satisfied with the results of ourinvestigation, you may take your complaint to the FinancialOmbudsman Service whose address is South Quay Plaza,183 Marsh Wall, London E14 9SR Telephone 0845 0801800. Email:[email protected] Financial Ombudsman Service will normally reviewcomplaints from retail customers. However, their criteriafor reviewing complaints may mean that even if youhave been categorised by a provider of products andservices as a retail client they may not regard you as aneligible complainant.
20.3 Details of your rights to compensation if we are unable tomeet any of our liabilities to you are available from theFinancial Services Compensation Scheme 7th Floor,Lloyds Chambers, Portsoken Street, London E1 8BN.Telephone 0207 892 7300.
21. Your Information
21.1 Confidentiality
Information we hold about you will not be disclosed toanyone (including other members of the HSBC Group), other than where: • we are legally required to disclose • we have a public duty to disclose, • our interests require disclosure, • the disclosure is made with your consent,• as set out in the terms below.
21.2 Credit Reference Agencies
We may share information with credit reference agencies(CRAs) to verify your identity and suitability for an account,using information from the Electoral Register and otherpublic sources.
21.3 Crime Prevention
21.3.1 To prevent crime, verify your identity and to meet ourlegal obligations, we may exchange information (bothwithin the UK and, where appropriate, overseas) withother members of the HSBC Group and whereappropriate, with fraud prevention, law enforcement andother organisations.
21.3.2 If you give us false or inaccurate information and fraud isidentified, details will be passed to fraud preventionagencies to prevent fraud and money laundering.
21.3.3 Law enforcement agencies may access and use thisinformation. We and other organisations may also accessand use this information to prevent fraud and moneylaundering, for example, when:• Checking details on applications for credit and credit
related or other facilities• Managing credit and credit related accounts or facilities• Recovering debt• Checking details on proposals and claims for all types
of insurance• Checking details of job applicants and employees
21.3.4 We and other organisations may access and use fromother countries the information recorded by fraudprevention agencies.
21.3.5 Please contact the fraud prevention agencies directlyif you require a copy of any information they may holdabout you.
21.4 Data Processing
21.4.1 The HSBC Group may use and share relevant informationabout you, your transactions and your relationshipswith the HSBC Group for customer service, marketresearch, insurance, audit and administrative purposes.This may include information provided by you, orsomeone acting on your behalf. Where appropriate(for example if you have relationships with otherHSBC Group Companies in other countries), thisinformation may be shared with HSBC Group Companiesoutside the UK.
21.4.2 We may use other HSBC Group companies and/or thirdparties to provide services on our behalf which mayinclude the processing of information about you.
21.4.3 Whether it is processed in the UK or overseas, inaccordance with data protection legislation, yourinformation will be protected, by a strict code of secrecyand security which all members of the HSBC Group, theirstaff and any third parties are subject to.
21.4.4 Information may also be processed for the purposes ofcomplying with applicable laws, including anti-moneylaundering and anti-terrorism laws and regulations andfighting crime and terrorism. This may require thedisclosure of information to a UK or overseasgovernmental or regulatory authorities or to any otherperson we reasonably think necessary for thesepurposes.
21.5 Information about Products, Services and Promotions
With your permission, the HSBC Group may use andshare relevant information about you, your transactionsand your relationships with the HSBC Group, to give youinformation about products, services (including mortgages)and promotions, available from HSBC Group companiesand those of selected third parties which may interest youby post, telephone electronic and other means.The HSBC Group may also exchange, analyse and userelevant information about you in the way described aboveto ensure that promotional content displayed to you onscreen when you log on to HSBC Group websites is morelikely to be relevant and of interest.If you do not want us to contact you about such productsand services or use what we know about you to helpdecide what we display to you on our websites, please letus know.
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21.6 Miscellaneous
21.6.1 Under data protection legislation, you can make a writtenrequest for a copy of certain personal records we holdabout you. The current fee is £10.00 per request from eachindividual.
21.6.2 To ensure that we carry out your instructions accurately, tohelp us to improve our service and in the interests ofsecurity, we may monitor and/or record yourcommunications with us. Any recordings remain our soleproperty.
22. Amendment
22.1 We may amend these Terms. We will always give you atleast 30 days’ written notice. We will only change theseTerms for the following valid reasons;• following, or in anticipation of, a change in relevant law,
regulation, code of practice or guidance or generalbanking practice;
• to reflect the making of a recommendation, requirement ordecision of any court, ombudsman, regulator or similarbody;
• to reflect a change in our procedures;• to reflect any reorganisation of our business by it being
acquired by or by our acquiring another bank ororganisation (so that customers with similar productscan be treated in the same way).
• to reflect any event beyond our control.If the change is to your disadvantage, we will give you30 days prior notice before we make the change. Wemay make any other change immediately and tell youabout it within 30 days. If any change is to yourdisadvantage, you may, at any time up to 60 days fromthe date we tell you of the change, close your Account.you will not have to pay any additional charges orinterest for doing this during this period. However, theclosure of your Account will be treated as an earlytermination (please refer to clause 18).
23. General
23.1 We will not be responsible for any loss you may incurif we or any of our agents or correspondents areprevented from or delayed in providing you with anybanking or other services due to strikes, industrial action,failure of supplies or equipment, or other causes beyondour control.
23.2 Nothing in these conditions will reduce your statutoryrights relating misdescribed products or services and thefairness of terms on which they are offered. For furtherinformation about your statutory rights contact your localauthority, Trading Standards Department or Citizens AdviceBureau.
24. Governing Law
24.1 These Terms are governed by the laws of England andWales. You and we submit to the non-exclusive jurisdictionof the courts of England and Wales.
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Annexe 1
Best Execution Disclosure Statement
1. Purpose and scopeThis Best Execution Disclosure Statement provides asummary of the steps we will take to achieve the BestPossible Result for purchases or sales of Shares under ourExecution Policy on a consistent basis.
2. Execution of TransactionsYour instructions for the purchase or sale of Shares will beexecuted within the time periods specified in the Termsor, where applicable, at such time as you instruct. Theshare price for all purchases and sales of Shares will bedetermined at the next valuation point following the receiptof our instructions by the relevant Manager/ACD.
3. Execution VenueAll instructions for the purchase or sale of Shares will beexecuted with the relevant Manager/ACD, which will bethe execution venue for the purposes of the Rules
4. Effective date, review, amendments and monitoringThis Best Execution Disclosure Statement was effectivefrom 1 November 2007 and will be reviewed at leastannually. We may amend this Best Execution DisclosureStatement as necessary and where a material change hasoccurred, we will inform you in writing. We will alsoregularly monitor our effectiveness in achieving the BestPossible Result for purchases or sales of Shares.
Annexe 2
HSBC Policy on Conflicts of Interest
The HSBC Group is a global organisation which provides a widerange of financial services. As such, it, or a company with whomit has an association (“HSBC”), may from time to time haveinterests which conflict with its clients’ interests or with theduties that it owes to its clients. These include conflicts arisingbetween the interests of HSBC, its associates and employees onthe one hand and the interests of its clients on the other and alsoconflicts between clients themselves. HSBC has established procedures which are designed to identifyand manage such conflicts. These include organisational andadministrative arrangements to safeguard the interests of clients.A key element of this policy is that persons engaged in differentbusiness activities involving a conflict of interest must carry onthose activities independently of one another.Where necessary, HSBC maintains arrangements whichrestrict the flow of information to certain employees in order toprotect its clients’ interests and to prevent improper access toclient information. HSBC may also deal as principal for its own investment accountand may be matching transactions with another client.Procedures are in place in order to protect the client’s interest inthis instance. In some cases, HSBC’s procedures and controls may not besufficient to ensure that a potential conflict of interest does notdamage a client’s interests. In these circumstances, HSBC mayconsider it appropriate to disclose the potential conflict to theclient and obtain the client’s formal consent to proceed.However, HSBC may decline to act in any circumstance wherethere is residual risk of damage to the interests of any client.You may have further questions which relate to the underlyingprocedures within HSBC. In such cases you should contact us.Issued by HSBC Trust Company (UK) Limited. Authorised andregulated by the Financial Services Authority.© HSBC Trust Company (UK) Limited 2008. All rights reserved.
For further details:
Investors please contact your Professional Adviser or our Investor Services Team on
0800 289 505* or [email protected]
Professional Advisers please contact our Adviser Services Team on
0800 121 4661* or [email protected]
*To help us continually improve our service and in the interests of security we may monitor and/or record your communications with us.
HSBC Investments (UK) Limited provides information to Professional Advisers and their clients on the investment products and
services of the HSBC Group.
Issued by HSBC Investments (UK) Limited.
Authorised and regulated by the Financial Services Authority.
© Copyright. HSBC Investments (UK) Limited 2008. All Rights Reserved. 14200/AS/0408 FP08-xxxx