Dear Valued Customer,
In aligning with our commitment to serve you in your best interest, we will be revising “Terms and Conditions for Bank of China Private Banking (Singapore)” with effect from 1 January 2023. The details of changes are as follows:
PART C -TERMS AND CONDITIONS GOVERNING INVESTMENTS IN COLLECTIVE INVESTMENT SCHEMES
Update Clause 3. UNLISTED COLLECTIVE INVESTMENT SCHEMES
Where the sub-Clause above applies, and where the Collective Investment Scheme is an Authorised scheme as defined under sections 286(2), 2(A) or (4) of the Securities and Futures Act (Cap. 289), you shall have the right to cancel the Purchase Agreement within seven (7) days from the date the Bank receives payment for the Units pursuant to Clause 2.1 above (“Cancellation Period”). Where the last day of the Cancellation Period falls on a non-Business Day, the Cancellation Period shall be extended to the next Business Day. For the purpose of this sub-Clause only, where you elect to pay for the Units by way of cheque, the Bank shall be deemed to receive payment for the Units on receipt of the cheque.
PART F GENERAL RISK DISCLOSURE STATEMENT AND DISCLAIMER
Insert Clause 9. UNIT TRUSTS AND MUTUAL FUNDS
Unit trusts and mutual funds are not bank deposits or obligations of or guaranteed by the Bank (or any other member of the BOC Group). A unit trust or mutual fund is a pool of money managed collectively by a fund manager who invests in a portfolio of assets to achieve certain investment objectives. Unit trusts and mutual funds are naturally subject to investment risks including the possible loss of the principal amount invested. The value of units and the income from any unit trust or mutual fund may fall as well as rise and cannot be guaranteed. Past performance of a unit trust or mutual fund is not necessarily indicative of the future performance of that unit trust or mutual fund.
Insert Clause 10. HEDGE FUNDS
Investments in hedge funds are speculative and involve a high degree of risk. The investor could lose all or a substantial amount of his/her investment. Each fund is unique and there are unique risks involved when investing in a particular hedge fund or private investment fund. The investor should therefore carefully read a fund's offering memorandum and related information for specific risk and other information before investing. There are different characteristics and investment strategies that define hedge funds (e.g. investment in various types of financial derivatives for either or both hedging and speculation). Most hedge funds often aim to make an absolute return, under varying market conditions. Some hedge funds take on very high levels of risk and may have significant leverage from the investment of borrowed capital. Hedge funds may be able to carry out short sales. Examples of the material risk differences between these and traditional mutual funds include the following:
(a) There may be uncertainties involved in the valuation of such investments or at times no net asset value prices may be available. The investments can be carried at values determined by the manager.
(b) There is limited or no secondary liquidity. Some of the underlying investments may not be actively traded.
(c) Some hedge funds may require a much higher minimum investment amount than a traditional unit trust or mutual fund.
(d) Where an underlying investment in a hedge fund becomes illiquid, such illiquid asset may be set aside and segregated into “side pockets” and considered separately from the rest of the underlying liquid assets of the hedge fund. The creation of side pockets will result in a fall in the value of the hedge fund.
(e) There may be restrictions to and exit penalties or fees imposed for early redemption.
(f) The interval between the time the investor places a redemption request and receives the redemption proceeds may be much longer than for a traditional unit trust or mutual fund. The redemption price may be affected by fluctuations in value of the underlying investments from the time a redemption request is submitted and the date the redemption price is determined.
(g) Many hedge funds are located in “offshore” jurisdictions, and are subject to less stringent laws and supervision, which in turn provides relatively weaker investor protection relative to a traditional unit trust or mutual fund. There is no assurance that an investor’s legal rights will be enforceable.
Due to their complexity, these are only suitable for investors who are able to understand and bear the risks involved.
Part H Terms and Conditions Governing Electronic Services
Delete Clause 8 ADDITIONAL PROVISIONS RELATING TO S&P
Delete Clause 9 ADDITIONAL PROVISIONS RELATING TO MOODY’S
If you have any enquiries, please contact Private Banking (Singapore) at +65 6412 8338 or +65 6412 8332 during business hours (From Monday to Friday 09:00 to 15:30).
Bank of China Limited Singapore Branch
30 November 2022
