Terms & Conditions
DBS Treasures Agreement
An Overview of Your DBS Treasures Relationship
These are the terms and conditions that will govern your relationship with the Bank as a DBS Treasures client, in which we also refer to as the Agreement. While we have prepared key points for your easy reference, they are not meant to be a substitute for reading the details of the Agreement and you should familiarise yourself with all aspects of the Agreement.
Updated as of 30 Dec 2020
Key Sections in the Agreement
Section A sets out the terms that apply to the various accounts that we will open for you as a DBS Treasures Customer, on top of your existing personal accounts with us.
|Wealth Management Account (“WMA”)||To put your investment holdings in|
|Multi-Currency Settlement Account||For settlement for transactions you do with, and through us|
|DBS Wealth Nominees Account||To custodise any transactions you make via Securities Trading on the applicable terms set out in the Terms and Conditions Governing Investment Products.|
Section B covers the way we communicate with you, which includes taking your instructions and the type of information that we send you.
Section C deals with what happens when we makes changes to the Agreement or stop the Agreement with you. You can also find out how to terminate the Agreement.
Other agreements to take note
You should read the Agreement together with the Applicable Agreements below:
- Terms & Conditions Governing Accounts for all your Accounts (defined below).
- Terms and Conditions Governing Investment Products if you sign up for an investment offered by us.
- Terms and Conditions Governing Electronic Services if you make use of any electronic services made available by us.
The Agreement does not cover loan products and services such as the following, as they have separate terms and conditions:
• Secured Credit Facilities • Mortgages • Credit Cards
When you read this agreement, bear in mind that
- “Account” means any account(s) which you may have with us whether alone or jointly with any other person(s), and includes savings accounts, current accounts, fixed deposit accounts and any other accounts which we may introduce from time to time.
- “Agent” means any agent, correspondent, broker, dealer, counterparty, adviser, bank, attorney, custodian, sub-custodian, depository, depository agent, manager, assayer, refiner, service provider or Nominee selected or used by us, whether in Singapore or elsewhere, and may include any of our affiliates.
- “Applicable Agreement” means any other agreement that is binding on you in addition to this Agreement.
- “Applicable Laws” means all relevant laws (including statutory enactments and judgments of any legal court or tribunal, and any form of unwritten or uncodified laws) of Singapore or any other applicable jurisdictions, rules, regulations, orders, rulings, directives, notices, circulars, decrees, bye-laws, policy statements, guidelines, practice notes, interpretations, standards, consultation papers, requirements, custom, usage or general commercial and regular banking practices (whether or not having the force of law) of any governmental or regulatory authority or agency, self-regulatory organisation, market, exchange, clearing house, trade repository and electronic trading platform or depository system (whether in Singapore or elsewhere) having supervisory jurisdiction or relevance to this Agreement, any Applicable Agreement, Account, Service, investment or transaction.
- “Assets” means cash, investments, and any of your assets or property as may be delivered and transferred by you to us or to our order whether by way of security or for management, safe custody or any purpose whatsoever. In cases where you are trustees opening and maintaining an Account for the purposes of a trust, as expressly made known to and acknowledged by us, references to Assets shall be construed to include references to the Assets of such trust, notwithstanding that beneficial ownership of those Assets may vest in persons other than the trustees.
- “Business Day” means any day on which banks in Singapore and the Bank are open for banking business.
- “Customer Data” means all information (including personal data as defined in the Personal Data Protection Act) relating to the Customer, the Customer’s investments, transactions, accounts, the services utilised by Customer or dealing relationship with us, including Customer Information as defined in the Banking Act.
- “DBS Group” means DBS, its subsidiaries, affiliates, branches and related companies.
- “Liability” means at any time (a) all sums (whether principal, interest, fees, costs, charges, expenses, commissions or otherwise) which are or at any time may be or become due from or owing by you to us, or which you have agreed to pay or discharge, whether actually or contingently, under or in connection with this Agreement and/or any Applicable Agreement; and (b) all other liabilities and monies which now are or at any time may be or become due from or owing by, or be incurred by, you to us, in whatever currency those sums, liabilities or monies shall be denominated or owing, whether alone or jointly with any other person and on any account whatsoever, whether current or otherwise, and whether present, future, actual or contingent and whether as principal debtor, guarantor, surety or otherwise howsoever.
- “Losses” means all reasonable losses, costs, expenses, damages and liabilities.
- “Nominees” means DBS Nominees (Pte) Ltd and any other nominees(s) appointed by us or our agents on our behalf from time to time or any of them.
- “Person” means any individual.
- “Securities” means stocks, shares, notes, options, warrants, debentures, book-entry securities, bonds, certificates of deposit instruments, and other equity or debt instruments (whether represented by a certificate or by a book-entry on the records of the issuer or other entity responsible for recording such book-entries)
- “Securities Transaction” means any transaction pursuant to which Securities are acquired, purchased and/or sold.
- “Services” means all services, financial and non-financial, made, or to be made available by the Bank to you as a DBS Treasures customer which includes any core service such as financial banking or other service including electronic services, products, information, functions and facilities which may be offered by us from time to time, and also any transactions entered into under this Agreement and/or any applicable agreement and “Service” means any one of them.
- “Specified Investment Product” is as defined in the Securities and Futures Act (Cap. 289) Notice on the Sale of Investment Products, as may be amended or substituted from time to time.
- “We”, “our”, “us” “DBS”, “Bank”, refers to DBS Bank Ltd and its successors and assigns.
- “You”, “your”, “Account holder”, “customer” means the Person(s) in whose name(s) the Account is maintained, and includes the successors or personal representatives of such Person.
- Unless otherwise stated, references to Clauses or Schedules are references to clauses and schedules of this Agreement. Headings or sub-headings to Clauses or Schedules are for ease of reference only, and shall not in any way affect the construction or interpretation of this Agreement.
- In the event of any inconsistency between any applicable agreement and this Agreement, this Agreement shall prevail in respect of the Accounts and/or Services provided to you as a DBS Treasures customer.
A. Account Management
1. Account Opening
When you read this agreement, bear in mind that
1.1 You authorise us to open the following accounts for you on your behalf in your name (whether jointly or singly), with the specimen signature furnished for your primary savings/current account with us to apply:
- Wealth Management Account (“WMA”)
- Multi-Currency Settlement Account (“Settlement Account”)
- DBS Wealth Nominees Account
1.2 We shall from time to time determine the types of services and facilities that are available through the WMA, without any notice or liability to any party.
1.3 We will determine the account number to be allocated to each Account opened and may change it upon notification to you.
1.4 You must make an initial deposit of such amount as we prescribe to open an Account, unless we agree otherwise.
1.5 You should inform us immediately of any change or inaccuracy in relation to your personal particulars. You are required to provide us any additional information that we may require in connection with the operation of the WMA. If you fail to do so, we will not be responsible for any resulting loss to you.
1.6 If you have any investments that were purchased with us using cash, we may, if necessary, transfer all your existing investments to your WMA.
1.7 Cash deposits into and cash withdrawals from the Settlement Account will not be accepted, including but not limited to at any of our branches, unless otherwise agreed by us.
1.8 We shall be entitled to credit the Settlement Account with the funds received by us from the following (non-exhaustive) listing:
- any funds received upon maturity of your fixed deposit;
- any funds received in respect of purchasing or acquiring any Securities and/or investments;
- any funds from the sale, disposal or redemption of such Securities and/or investments or part thereof;
- all dividend and interest income arising from your Securities and/or investments; and
- any other income, payments or sums to which you are entitled to in relation to any transaction, service or investment product.
1.9 We shall be entitled to debit the Settlement Account without further Instructions from you and you hereby authorise us to make such payments for all Fees and Charges as listed in Clause 16.
1.10 No cheque books will be issued with respect to the Settlement Account.
1.11 Sums paid from a Settlement Account shall be in the currency of the Settlement Account or (at our discretion) its Singapore Dollar equivalent at our prevailing exchange rate.
1.12 We reserve the right to:
- make such transfer to any Settlement Account from any of your Accounts for such purpose as we deem fit (including but not limited to settlement of any investment transactions), without any instructions or consent from you;
- impose a limit on the amounts that may be withdrawn from the Settlement Account;
- set a minimum deposit amount on the Settlement Account;
- pay to you any amount withdrawn from the Settlement Account by one or more of the following methods:
- transfer of funds to any of your Accounts;
- issue to you a cashier’s order drawn on us;
- effecting a transfer to an account with any other bank(s) in the currency of the deposit in accordance with your written Instructions;
- by converting the principal and accrued interest into Singapore Dollars at our then prevailing buying rate and paying the proceeds to you; and/ or
- by such other means as we at our discretion think fit;
- levy such periodic service charges if the balance in any of your Accounts falls below any minimum deposit amount prescribed by us from time to time;
- pay a lower rate of interest or no interest at all on balances below certain amounts to be determined by us from time to time. We will inform you of the prevailing amount upon enquiry; and
- earmark such amount of monies to credit to any of your Accounts as we may deem necessary for the purpose of settling any of your payment obligations to us or any third party in connection with or arising from any investment, transaction or Service under this Agreement and/or any Applicable Agreement, and you may not, without our prior written consent, withdraw or transfer any part of the earmarked amount until such payment obligations have been fully discharged. If at any time the credit balances in your Accounts fall below the earmarked amount, you shall immediately deposit into your Accounts an amount equivalent to such shortfall.
1.13 You agree at all times to maintain sufficient funds in the Settlement Account for the purpose of effecting any transaction or service and/or for paying any fees, costs or other expenses which you are liable to pay under this Agreement. In addition to the above, you acknowledge and agree that if at any time there are in our reasonable opinion (having regard to other payments debited or due to be debited) insufficient funds in the Settlement Account for these purposes, we may
- decline to undertake any transaction, service or investments; or
- in our sole discretion and without any obligation to do so on our part, transfer funds as necessary from any other of your Accounts or any accounts opened with any of our branches without further Instruction from you.
1.14 Any sum(s) owing by us to you can be credited into the Settlement Account or paid in such other manner as we deem fit and shall be considered as good and sufficient discharge of our payment obligation to you.
1.15 We are authorised to convert any sums to be debited from or credited into your Settlement Account into a different currency at our absolute discretion at such date and rate of exchange and using such method as we may conclusively determine and you shall bear the cost of such conversion. The rate, method and date of exchange shall be binding on you. In addition, whenever payment is to be made in a different currency from your available funds in the Settlement Account for that payment, we are authorised to effect the necessary conversion of currency for the purpose of effecting that payment at our own rate of exchange then prevailing, and you shall pay us such commission or other fees as we may prescribe for effecting such conversion.
2. Additional Terms and Conditions Governing Time Deposit Accounts
Time Deposits (“TD”) that you open with us are governed by the Bank’s Terms and Conditions Governing Accounts. For TDs that are opened via DBS iWealth, please note of the additional terms and conditions listed below.
2.1 Any deposit into or withdrawal from the TD Account shall be in the manner or currency permitted by us, and is subject to our prevailing prescribed commissions and/or service charges, and where applicable, to conversion at our prevailing foreign exchange rates.
2.2 Upon maturity, we may at our sole discretion, transfer any amounts deposited in the TD Account to any Account including any Settlement Account via a fund transfer or a series of transfers.
2.3 You may not make any withdrawal from the TD Account at any of our branches, unless we agree otherwise.
3. Overdraft and Charge to Give to DBS
3.1 In the absence of prior approval, your Account shall not be overdrawn. At your request, explicitly or otherwise by overdrawing on your Account, or by your action causing your Account to become overdrawn, we may, at our discretion, grant you an overdraft facility secured against Assets you place with us. In this regard, you hereby create a first fixed charge over all your Assets held with us as security for your obligations arising from your request. This charge is independent of any other charge or security that you may have provided to us previously.
3.2 The overdraft limit may be adjusted at our discretion, upon changes in the valuation of such Assets.
3.3 Any overdraft is subject to our overriding right of repayment on demand.
3.4 In the event that we do not grant you an overdraft facility, we may close your Account if your Account is or becomes overdrawn.
4. Right of Set-off
4.1 In addition to any other set-off rights we have, we may at any time without notice to you set-off or transfer any sum(s) of money in any of your Accounts with us towards the satisfaction of the Liabilities. This includes Accounts that may not be in the same currency as the Liabilities, and can also consist of TDs which have yet to mature.
4.2 We are authorised and entitled to effect any necessary conversion at our prevailing rate of exchange. In this respect, where such Accounts consist of TDs, you agree that we may at our discretion, and as long as the Labilities remain owing and unpaid, renew such TDs for similar period(s) in the same currency and at the rate offered by us for such period(s). You further declare and warrant that you are legally and beneficially entitled to the abovementioned Accounts.
5. Treasures Privilege Services
5.1 We may vary or withdraw the Services without notice to you or any party. You can find out the current suite of Services available to you by contacting your relationship manager, visiting our Treasures Services Centre, or from the DBS Treasures website.
5.2 We reserve the right to offer the Treasures Privilege Services to, and withdraw the Treasures Privilege Services from, any person at our sole discretion. If you are downgraded from the DBS Treasures platform for any reasons whatsoever, we may choose to stop providing you with any Treasures Privilege Services
5.3 As part of the Treasures Privilege Services, we may issue you a DBS Privilege Services card. The DBS Privilege Services card may take the form of a card or any other electronic or computerised token, device or gadget. You are also subject to the relevant terms and conditions available through the DBS Privilege Services card.
5.4 Any DBS Privilege Services card issued is our property and must be returned on request. It cannot be transferred to any other person.
5.5 We may introduce you to other Treasures privileges and services provided by third parties. Any services provided by third parties are subject to their terms and conditions and we will not be liable for any loss you incur in connection with such services.
B. Communication with you
6. Your Instructions
6.1 In this section, “Instruction” means any notice, demand, instruction or other communication given in any form acceptable to us, including via mail, telephone, facsimile transmission, email, video conferencing or any other form of electronic communication acceptable to us.
6.2 Notwithstanding the terms of any arrangement or agreement or course of dealing between DBS and you, DBS is hereby authorised by you, but is not obliged, to accept, rely or act upon any Instruction in respect of the Securities (including conducting any financial needs analysis or a review thereof), including Instructions in respect of any of your savings, current, time deposit or other accounts held by you.
6.3 We shall be entitled to treat such Instruction as duly authorised by and binding on you (a) without waiting for any confirmation or the original instruction in writing; (b) without making any inquiry as to the authority or identity of the person(s) giving or making or purporting to give or make such Instruction; and (c) regardless of the circumstances in which such Instruction was made or given to DBS.
6.4 We shall be entitled to refuse to accept, rely or act on any Instruction without giving any notice or assigning any reason.
6.5 If we act on your instructions in respect of any products or services relating to the Account, you will be subject to these Terms and Conditions and the terms and conditions governing that product or service.
6.6 You will indemnify us against all liabilities, claims, demands, actions, proceedings, losses, damages, expenses, costs (including legal costs on a full indemnity basis) and all other liabilities of whatsoever nature and howsoever arising which we may incur or suffer directly or indirectly as a result of us acting on any instruction in accordance with these Terms and Conditions.
6.7 You agree that we will not be liable to you in relation to any costs, expenses, damages or losses that you may suffer or incur including any direct, indirect, consequential or special loss, as a result of any decision or action taken by DBS in good faith with regards to your Instructions.
6.8 If DBS receives any Instructions outside Banking Hours on a Business Day, DBS will only consider such Instructions on the next working day. “Banking Hours” are the hours on any Business Day that DBS processes Instructions.
6.9 In the event that DBS receive two or more Instructions which DBS considers to be inconsistent, DBS is entitled to (a) refuse to accept, rely or act on such Instructions until DBS has obtained satisfactory clarification; or (b) accept, rely or act upon such Instructions as DBS think fit.
6.10 You agree that DBS may at any time perform a call back to confirm the Instruction given, or request that you provide DBS, within a specified period, with the original instruction in writing duly signed by the authorised signatory(ies).
6.11 You agree that any telephone conversations between DBS and you may be recorded with or without the use of an automatic tone warning device. You agree that DBS is entitled to erase such recordings. You further agree that DBS is not obliged to provide you with access to copies or transcripts of any telephone recordings between DBS and you.
6.12 You agree that this authorisation may be revoked by DBS at any time without notice to you and/or assigning any reason.
6.13 DBS will maintain all records of your Instructions and we may use them as evidence in any court or arbitration proceedings as proof of their contents. You acknowledge and agree that DBS it not obliged to provide you with access to such records, and we may destroy them after any obligations (both statutory and internal) to store them have expired.
7. Electronic Signature Instruction
7.1 Some Instructions can be signed electronically and these are known as Electronic Signature Instructions. This means we collect and link your signature with the relevant Instruction in electronic form.
7.2 The Electronic Signature Instruction service may be availed to you at our discretion.
7.3 Your signature collected, received and/or stored in such electronic form shall be deemed to be equivalent to your signature in hard copy.
7.4 You agree that electronic data or images of any form, document, instruction or communication, other electronic documents, instruction or communication and all records in electronic form (collectively, “Electronic Records”) maintained by us or on our behalf where any signature(s) in electronic form has/have been affixed or appended (including, but not limited to, each Electronic Signature Instruction), which fulfil our internal processes and requirements, shall be deemed to be valid, accurate and authentic, and given the same effect as if such Electronic Records in electronic form were written and signed between you and us in hard copy.
7.5 You further agree that the security procedure applied or to be applied to verify that the Electronic Signature Instruction is commercially reasonable and secure, pursuant to the Electronic Transactions Act (Cap 88).
8. Messages We Send You
8.1 You authorise DBS to provide to you, as part of the Services, documents, notices, alerts and other formal communications containing your personal particulars and account information, via post, email, SMS, facsimile, telephone call, video conference or any form of electronic communication over any device, media or channel.
8.2 We will use the mailing address, email address and telephone number you have registered in our records and you undertake to inform the Bank in writing or via internet banking or any other mode of instruction permitted by the Bank if you change your mailing address, email address or telephone number.
Information on our Products and Services
8.3 You consent to DBS providing you with information on any services and/or products available to you as a DBS Treasures customer (including research publications of ours and/or of our counterparties) which, in our opinion, may meet your interest and/or investment objectives. Such information may be sent via post, email, SMS, facsimile, telephone call or any form of electronic communication over any devices, media or channels and in any manner as we may deem appropriate.
8.4 The Bank is only a channel of communication in respect of such communication and notices, and you agree that we are not liable to you in relation to any costs, expenses, damages or losses that you may suffer or incur including any direct, indirect, consequential or special loss, as a result of any decision or action that you may take upon receipt of such notification.
8.5 All risks involved in postal, email, facsimile and SMS communication, including delay or failure of delivery, and risk of unauthorised access will be borne by you. All email, facsimile and SMS communications are not encrypted. You are responsible for the security of your own email account and/or phone. You shall bear all risks of communications made by you to the Bank and by the Bank to you.
8.6 You shall not hold us liable for the following except where you have conclusively established in the Courts of Singapore that such delay, interception, loss and/or failure to reach you or disclosure to any third party was due solely to our gross negligence or wilful default:
- any communication that is delayed, intercepted, lost and/or failed to reach you during delivery, transmission or dispatch or if the content of such communication is disclosed to any third party during transit;
- any loss of security or information regarding any Account or any loss or damage suffered or incurred by you arising from your use of the email or SMS communication service or as a result of you not following instructions, procedures, and directions for using the email or SMS service, as may be prescribed or approved by DBS from time to time.
8.7 We may in our absolute discretion choose to communicate with you in any mode we reasonably deem fit.
9. Consolidated Statement of account
9.1 We will send you Statement(s) of your Accounts that we may determine from time to time in a form and at a frequency we deem appropriate (“Statements”), to your registered mailing address (if in hard copy form) and/or your registered email address (if in electronic form) in our records. For Statements sent to you via Electronic Services (“Electronic Statements”), you agree to be bound by the prevailing Terms and Conditions Governing Electronic Statements. You may request printed records of any Electronic Statement subject to such conditions and the payment of such service fee that we may from time to time impose.
9.2 Transactions performed after the Bank’s cut-off time for statement issue will be reflected in the following month’s Statement(s).
9.3 In the case of a joint account, one consolidated Statement addressed to all the account holders will be sent. You must notify us in writing if you do not receive the consolidated Statement within 7 days of the expected date of receipt, failing which you will be deemed to have received it. If you do not wish to receive the consolidated Statement, please inform us.
9.4 If any Statement is returned undelivered, we reserve the right not to send you any Statement of Account in future.
9.5 You must tell us as soon as you can if a Statement includes something which appears to you to be wrong or was omitted. If you do not notify us of any error or inaccuracy within 14 days upon receipt of the Statement, the Statement shall remain binding.
9.6 We reserve the right, without prior notice to you, to add and/or alter the entries in any Statement(s) in the event of any incorrect or missing entries or amounts stated therein.
C. Variation and Termination of Agreement
10. Changes to this Agreement
10.1 We may make changes to this Agreement at any time by giving you notice. Such changes take effect on the date specified by us in the notice. If you do not accept the changes, you must promptly inform us that you wish to terminate this Agreement, discontinue use of any Accounts and/or Services made available to you as a DBS Treasures member, and return all items provided to you to utilise any DBS Treasures privileged services. If you continue to use any Accounts and/or Services made available to you as a DBS Treasures member after such notice, this means you have agreed to accept the changes.
10.2 The obligation to give you notice does not apply if changes are required in an emergency, where it is not practicable to give such notice, where changes are for administrative or clarification purposes, or for the inclusion of additional terms and conditions governing new products and services.
11. Termination of Agreement
11.1 We may suspend any of the Services available under this Agreement and/or terminate this Agreement at any time without giving any reason by 7 days’ prior notice, or where we deem fit, immediately upon notice to you (whether or not the notice is received by you).
11.2 You may terminate this Agreement by giving us prior written notice of at least 14 days. For joint Treasures memberships, instructions must be provided by each of the joint parties, and termination of the joint Treasures membership shall only take effect upon the Bank’s written notice confirming the joint termination. Any standing instructions given by you for transactions will continue to bind you until we receive notice of termination of this Agreement from you. When this Agreement is terminated, you must surrender all items, including any DBS privilege services card.
12.4 Any consent you give pursuant to the Agreement in relation to personal data shall survive your death, incapacity, bankruptcy or insolvency, as the case may be, and the termination of the Agreement.
12.5 You acknowledge and accept that a reward (based on your assets under management with us after a cut-off date determined by us) may be paid to any person who has successfully introduced you to us as a customer (“Referrer”), and you consent to the disclosure of your status as a Treasures customer to such a Referrer for this purpose. No information on the amount of assets under management or other Account information will be disclosed.
13. Compliance with Tax Requirements, Sanctions and Regulations
13.1 You agree to be bound by the terms relating to tax requirements (“Tax Terms”) which forms part of the Agreement and which may be amended, supplemented and/or substituted from time to time by us. The Tax Terms are available at www.dbs.com.sg/tax-requirements.
13.2 All sums payable by you under this Agreement will be paid:
- free and clear of and without any deduction or withholding (except to the extent required by law) on account of any tax, levy or other charges; and
- without deduction or withholding (except to the extent required by law) on account of any other amount, whether by way of set-off, counterclaim or otherwise. If any deduction or withholding is required by law, the sum payable by you will be increased to the extent necessary to ensure that, after making such deduction, withholding or payment, we receive on the due date and retain (free from any liability in respect of any such deduction, withholding or payment) a net sum equal to what DBS would have received and retained, had no such deduction, withholding or payment been required or made.
13.3 You will pay to DBS on demand a sum equivalent to the amount of any applicable goods and services tax (by whatever name called) or any other taxes, levies or charges (or such part which the law does not prohibit DBS from collecting from you) in addition to all other sums payable to DBS under this Agreement and you will indemnify DBS against all such amounts.
13.4 You shall comply with all Applicable Laws in your use of the products and services provided by the DBS.
13.5 We may:
- take any action we consider appropriate to meet any obligation under any Applicable Laws/regulations or requirement by any governmental and/or regulatory authority (“Authority”), in connection with preventing any unlawful activity including fraud, money laundering, terrorist activity, corruption, bribery, tax evasion or the enforcement of any economic or trade sanction (including rejecting or refusing to carry out any instruction or transaction in relation to your Accounts, terminating services to and/or closing your Accounts and making such reports or taking such other actions as we may deem appropriate) without notifying you;
- disclose information relating to you and transactions in relation to your Accounts to any Authority without notifying you,
13.6 We shall not be liable for any loss, damage or cost which you may incur or suffer arising out of or in connection with us exercising our rights under this Agreement.
13.7 Withholding Tax
13.7.1 We operate in countries where we are required to disclose information in relation to our customers, such as you, to the tax authorities (“Foreign Tax Authorities”). For instance, this includes, where applicable, a US Person’s tax identification number and income sourced from the United States to the United States Internal Revenue Service.
13.7.2 If any of your Account(s) receives non-Singapore sourced income that is subject to non-resident withholding tax, you agree and acknowledge that we are required to make such withholding at the prescribed rate on behalf of these Foreign Tax Authorities.
13.7.3 We reserve the right not to apply reduced treaty rates even if you are a recipient of income sourced from a country which has a double tax treaty with the country you are a tax resident of.
14.1 We do not exclude or limit any liability that:
- we may have to you under Applicable Laws and regulations, or
- the Applicable Laws and regulations do not allow to be excluded or limited.
14.2 We will not be liable to you for any Losses which:
- arise from any cause beyond our reasonable control;
- we could not reasonably have anticipated when you gave us an instruction; or
- relate to any loss of business, loss of goodwill, loss of opportunity or loss of profit, unless it was directly caused by our gross negligence, wilful default or fraud
14.3 We are not liable to you for any act we take, or fail to take, which we reasonably believe is necessary to comply with any Applicable Laws.
15. Governing Law and Jurisdiction
15.1 This Agreement is subject to the laws of Singapore. You agree to submit to the non-exclusive jurisdiction of the Courts of Singapore for the settlement of any dispute in relation to this Agreement.
15.2 If you are not located in Singapore, please note that DBS cannot be responsible for the effect of other Applicable Laws which may apply to your Account. You accept all risks arising from such other Applicable Laws.
16. DBS Treasures Service Charges or Fees
16.1 We may impose on you a charge and/or fee for the provision of our DBS Treasures services. The fees are set out in our Pricing Guide and may change from time to time. You can view the Pricing Guide here at https://www.dbs.com.sg/treasures/pricing-guide.page.
16.2 Our Pricing Guide includes information relating to our investment services, including the cost of advice, where relevant, the cost of the financial instrument recommended or marketed to you and how you pay for it.
16.3 You are liable for any costs and charges that we could not reasonably have anticipated, and that we properly incur under the Agreement, including reasonable commissions, transfer and registration fees, stamp duties, transaction taxes or any other taxes and other liabilities we suffer if you fail to carry out your obligations under the Agreement.
16.4 We reserve the right to debit the fees and charges you owe us from any account that you hold with us.
17. Other General Terms
The Contracts (Rights of Third Parties) Act, Chapter 53B of Singapore, shall not apply to these Terms and Conditions and any person who is not a party to these Terms and Conditions shall have no right whatsoever to enforce these Terms and Conditions.
Terms and Conditions Governing Investment Products
When you choose to take up an investment product with us, you are bound by a set of Terms and Conditions (“this Agreement”). You must read this in conjunction with the following:
Terms and Conditions Governing Accounts
Terms and Conditions Governing Electronic Services:
The DBS Treasures Agreement (for DBS Treasures customers only)
Your Financial Profile (if applicable)
The separate terms in documents for specific transactions, including but not limited to the term sheet and offering documents
We would like to draw your attention to the following sections. However, you should still read through the entire terms and conditions below.
- Risk Disclosures – There are risks involved in any investment. See Section 2 on Risk Disclosure Statements for details.
- Custody Service – Your investment holdings may be held in the custody of DBS or a Nominee. See Section 3 on Custody Service Terms for details.
Table of Contents
|Section||What it covers|
|Section 1 – General Terms for All Investment Services and Services We Provide||These are terms that apply to any investment product or service we provide|
|Section 2 – Risk Disclosure Statements |
A – General Risk Disclosures
|These are general risks that apply to any investment product or service we provide|
|B – Specific Product Risks |
1 – Funds
2 – Structured Deposits
3 – Currency-linked investments
4 – digiPortfolio
5 – Securities Trading / Transactions
6 – Bonds
7 – Structured Notes
8 – Gold
9 – Forwards and Futures
10 – Options
11 – Swaps
12 – Credit Derivatives
13 – Private Equity Investments
|These are risks that are specific to a particular investment product or service we provide|
|C – Overseas Listed Investment Products Disclosures||These are risks that apply to investment products listed outside Singapore|
|Section 3 – Custody Service Terms||These contain the terms and risks for holding your investment holdings in custody of DBS or a Nominee.|
|Section 4 – Additional Terms and Conditions Governing Investment Products and Services |
A – Funds
B – Structured Deposits
C – Currency-Linked (or Dual Currency) Investments
D – digiPortfolio
E – Stock Trading Services
F – Bonds
G – Structured Notes
H – Gold Account
|These are additional terms that apply to a specific investment product or service we provide, on top of any general terms mentioned in Section 1.|
“Agent” means any agent, correspondent, broker, dealer, counterparty, adviser, bank, attorney, custodian, sub-custodian, depository, depository agent, manager, assayer, refiner, service provider or Nominee selected or used by us, whether in Singapore or elsewhere.
“Affiliate” means any subsidiary, related corporation, parent company, office, representative office, our associated company, and includes their respective successors and assigns.
“Applicable Agreement” means any terms and conditions that supplement this Agreement in any document that we may specify from time to time in relation to the operation of any account and the provision of any Products or Services.
“Applicable Laws” means all relevant laws (including statutory enactments and judgments of any legal court or tribunal, and any form of unwritten or uncodified laws) of Singapore or any other applicable jurisdictions, rules, regulations, orders, rulings, directives, notices, circulars, decrees, bye-laws, policy statements, guidelines, practice notes, interpretations, standards, consultation papers, requirements, custom, usage or general commercial and regular banking practices (whether or not having the force of law) of any governmental or regulatory authority or agency, self-regulatory organisation, market, Exchange, clearing house, trade repository and electronic trading platform or depository system (whether in Singapore or elsewhere) having supervisory jurisdiction or relevance to this Agreement, any Applicable Agreement, Account, Service, investment or transaction.
“Assets” means cash, investments, and any of your assets or property as may be delivered and transferred by you to us or to our order whether by way of security or for management, safe custody or any purpose whatsoever. In cases where you are trustees opening and maintaining an Account for the purposes of a trust, as expressly made known to and acknowledged by us, references to Assets shall be construed to include references to the Assets of such trust, notwithstanding that beneficial ownership of those Assets may vest in persons other than the trustees.
“Bank”, “DBS” “We”, “Our” “Us” means DBS Bank Ltd, its Nominees, subsidiaries, Affiliates, branches and/or related companies.
“Business Day” means any day on which banks in Singapore (including us) are open for banking business.
“Corporate Actions” include redemption, right issues, bonus issues and matters relating to corporate changes, actual or proposed takeover, offer, sale, merger, compromise, arrangement, bankruptcy, insolvency or administrative proceedings affecting or in relation to any Asset or the issuer of any Asset or in relation to any rights for conversion, transfer or exchange of Asset.
“Liability” means at any time (a) all sums (whether principal, interest, fees, costs, charges, expenses, commissions or otherwise) which are or at any time may be or become due from or owing by you to us, or which you have agreed to pay or discharge, whether actually or contingently, under or in connection with this Agreement and/or any Applicable Agreement; and (b) all other liabilities and monies which now are or at any time may be or become due from or owing by, or be incurred by, you to us, in whatever currency those sums, liabilities or monies shall be denominated or owing, whether alone or jointly with any other person and on any account whatsoever, whether current or otherwise, and whether present, future, actual or contingent and whether as principal debtor, guarantor, surety or otherwise howsoever.
“Losses” means all reasonable losses, costs, expenses, damages and liabilities
“Nominees” means DBS Nominees (Pte) Ltd and any other nominees(s) appointed by us or our Agents on our behalf from time to time or any of them.
“Non-cash Transaction” means a transaction funded by Singapore Supplementary Retirement Scheme (“SRS”) or Central Provident Fund (“CPF”).
“Pricing Guide” means DBS Treasures Pricing Guide, which may be amended from time to time, and is available at https://www.dbs.com.sg/treasures/pricing-guide.page.
“Products” means all investment products offered under these Terms and Conditions.
“Settlement Account” means your bank account maintained with us, where you designate for the settlement of investment transactions, Corporate Actions and deduction of any fees or charges arising from the investment, including but not limited to custody fees. For Non-cash transactions, the Settlement Account means your SRS or CPFIS account. If you are a Treasures customer, your Multi-Currency Settlement Account will serve as your Settlement Account.
“US Person” means a person as defined in Rule 902(k) under the United States Securities Act of 1933.
“WMA” means the Wealth Management Account for the purposes of trading, settling and holding your Assets and in which we credit or debit Assets. This is applicable only if you are a DBS Treasures customer and the terms and conditions governing the WMA is found in the DBS Treasures Agreement.
Words in the singular include the plural and vice versa
Section 1 – General Terms for All Investment Services and Services We Provide (“General Terms”)
1.1 We provide investment services where we
- provide advice on investments;
- execute transactions in investments on your Instructions;
- exercise a discretion to buy and sell investments on your behalf; and
- provide you Custody Services in respect of your Assets.
1.2 Some investment services/products have terms that may differ or are in addition to these general terms and are laid out in the specific sections below. For some specific transactions, these are subject to separate terms that will be contained in the documents furnished to you. In the event of any inconsistency between the separate terms, the General Terms and Additional Terms (in section 4), the inconsistency will be resolved in favour of the document ranking higher in the following order of priority: (a) the separate terms, (b) the Additional Terms and (c) the General Terms.
1.3 All products and services available to you are subject to Applicable Laws. This means that we may not be able to offer you certain investments or products, depending on our classification of you as a customer. Notwithstanding the entry into this Agreement, we have no obligation to offer you any particular service to, or enter into any transaction for or with you or on your behalf.
1.4 Most investment products you purchase through us will be held in custody with us. You must read Section 3 for details on our Custody Services Terms and the risks involved in you doing so.
Financial Advisory Services
1.5 When we provide you with financial advisory services, we will require you to complete some questions that will help us understand your risk profile, investment objectives and financial situation so that we can provide appropriate recommendations for you to consider.
1.6 If you do not provide us with current, complete and accurate information, it may affect the recommendations that we provide. If you decide not to take our recommendation and subsequently purchase investment products that are not listed in our recommendations, you will not be able to rely on Section 27 of the Financial Advisers Act for any recourse.
Executing transactions in investments on your Instructions
1.7 Transactions that you instruct us to execute on your behalf are done without providing you any advice. We will act on your Instructions as described in Clause 4 below.
1.8 If you undertake any transaction that is not recommended or where no advice is provided by/from us, you agree that:
- your application and/or offer to subscribe to or purchase the investment was initiated by you without any form of solicitation by us;
- the application form, and/or offer document (as the case may be) in relation to the investment was furnished to you at your request; and
- we shall not be responsible for the suitability of the investment or transaction entered into by you, and that you will not be able to rely on Section 27 of the Financial Advisers Act for any recourse.
2 Investment Restrictions
Offer of Investments to Non-Residents of Singapore
2.1 The Products may not have been approved for offer, subscription, sale or purchase by any authority outside Singapore or the product issuer. If you choose to make any transaction on markets in other jurisdictions particularly on a self-directed basis, you should be aware that by choosing to undertake any transactions you should ensure that the requirements of your home jurisdictions which may be significantly different or more stringent than Singapore’s requirements are met. If you are unable to appreciate the differences between the requirements of your jurisdiction and Singapore, then you should refrain from making such transaction with us. Please observe all Applicable Laws of your jurisdiction when accessing the information contained herein.
2.2 If you are not a resident of Singapore, you should check the “Important Information for Non-Singapore Residents” available at https://www.dbs.com.sg/personal/non-singapore-residents/announcement.page, which may be amended from time to time.
Non-US Person Declaration
2.3 The Products have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state of the United States and that the investments are being offered and sold outside the United States to non-U.S. Persons (including institutional and other investors in Singapore) in reliance on Regulation S (“Regulation S”) under the Securities Act (where, subject to certain exceptions, the Products may not be offered, sold, delivered, renounced or transferred, directly or indirectly, in or into the United States, or to any U.S. Person (as defined in Regulation S).
2.4 You acknowledge that the product documentation relating to the investments do not constitute an offer to sell or a solicitation of any offer to buy or subscribe for any securities in any jurisdiction in which such distribution or offer is not authorised. The product documentation does not constitute an offer to sell or the solicitation of any offer to buy or subscribe for any securities in the United States of America or for the benefit of US Persons.
Accredited Investor (“AI”)
2.5 Where you apply for investment product in which no prospectus or offer document has been registered or approved by the relevant regulatory authority, you represent and warrant to us that you are an AI (as defined under the Securities and Futures Act of Singapore) who may purchase such product. We may, at our sole discretion, accept Instruction from a non-AI for application of an investment product, subject to such terms that we may impose.
2.6 We are exempted from certain regulatory requirements when dealing with you as an AI. These are available at https://www.dbs.com.sg/personal/accreditedinvestor/default.page, including where we provide information or offers of investment products to you as an AI, we are exempted from compliance with the following sections of the Financial Advisers Act (FAA):
- Section 25 of the FAA on disclosure of product information on designated investment products;
- Section 27 of the FAA on reasonable basis for making investment recommendation; and
- Section 36 of the FAA on disclosure of certain interests in specified products
2.7 You may be required to unwind the transaction if it is subject to purchase restrictions.
3 Your Representations and Warranties
3.1 You represent and warrant that
- You have the power and the capacity to enter into, exercise your rights and to perform and comply with your obligations under this Agreement and such power and capacity is not limited by any bankruptcy or similar situation;
- You are not a US Person;
- You have complied with and will continue to comply with all Applicable Laws by which you are bound, whether in Singapore or otherwise;
- You are entering into the investment transaction for yourself and not as an agent or on behalf of any other person;
- have the knowledge and experience necessary to evaluate and understand the financial investment and other risks involved in investment products; and
- You shall notify us immediately if any of the representations above or elsewhere in this Agreement shall no longer continue to be true and correct.
4 Your Instructions
4.1 You may submit an instruction to us by completing the relevant application forms in writing, or via electronic means, including phone, video and/or email, as determined by us at our discretion (“Instruction”). By submitting an Instruction via electronic means to us, you authorise us to accept, rely upon and act in accordance with such Instructions, and the Terms and Conditions governing Electronic Services will apply. Such Instructions submitted to us are irrevocable and we may, but shall not be obliged to, accept and act on it.
4.2 We may impose restrictions and requirements from time to time on how you should submit an Instruction, such as requiring an Application Form to be accompanied by a copy of your identity card or passport. We will also set cut-off times by which Instructions must be received by on a Business Day for processing on the same day. There may be different cut-off times for different application channels.
4.3 Before we act on an Instruction, we may take steps to check that the Instruction is clear, given by you, or on your behalf and meets any specific requirements. This may include performing a call back to you.
4.4 We will treat an Instruction as genuine if we believe in good faith that the Instruction is from you or any authorized person and there are no circumstances we are, or should reasonably be, aware of that cast doubt on the authenticity of the Instruction.
4.5 While we will try to execute your Instructions in a timely manner, we may not always be able to execute your Instruction at any specific time or on the same Business Day, even if your Instruction is accepted within the cut-off time. This may be due to various constraints including, but not limited to any requirement under Applicable Laws governing anti-money laundering and prevention of fraud.
4.6 We can refuse to act on any Instruction received if we reasonably believe:
- the Instruction is not clear or conflicts with any other Instructions given to us;
- the Instruction was not given by you or an authorized person;
- the Instruction contradicts or is inconsistent Instructions from different account holders of a joint account;
- you are, or appear unable to or unwilling to provide us with information or documents or assistance that may be reasonably required;
- you are not capable, whether mentally or otherwise, of giving instructions;
- by carrying out the Instruction we might break any Applicable Law; or
- you are of a nationality or residing in an area or country which is expressly prohibited from the investment transaction, and
- we shall not be liable as a result of such refusal to act, including loss of investment opportunity which you may suffer or incur as a result of any refusal or delay in acting on your Instruction.
4.7 You agree that any conversations between us and you via non-face to face medium (such as telephone and video conferencing) may be recorded with or without the use of an automatic tone warning device and we may use such recordings in court and arbitration proceedings in the event of any dispute. You acknowledge and agree that we may at any time, in our absolute discretion, erase such recordings. You further acknowledge and agree that we are not obliged to provide you with access to, copies or transcripts of such recordings between us.
4.8 You shall accept the risks involved in giving us instructions via electronic means, and agree to compensate us for any third-party claims or other costs that we incur in connection with the following:
- failure or error in transmission of any notice, instruction or communication;
- fraud, forgery, impersonation or identity theft of you; or
- any misunderstanding, lack of clarity, discrepancies or errors in the communication which result from any malfunction or breakdown in the machines used to transmit and receive your Instructions;
4.9 We may also make available the Electronic Signature Instruction service to you when you give Instructions to us in person. The Electronic Signature Instruction involves you signing on an electronic signature pad or any other equivalent electronic device, and the data is stored as an Electronic Record.
4.10 The Electronic Records as defined in Clause 4.9 above, will be deemed to be valid, accurate and authentic, and given the same effect as if such Electronic Records were written and signed between us and you in hard copy. You acknowledge and agree that Electronic Records will be stored for as long as the law and the standards and practices of the banking industry say we must. After this time, we may destroy them.
4.11 You acknowledge and agree that such Electronic Records can be used as evidence in any court proceedings as proof of their contents. You further agree that you will not dispute the validity, accuracy or authenticity of the contents of any such Electronic Records, including evidence in the form of activity or transaction logs, computer or electronic records, magnetic tapes, cartridges, computer printouts, copies, or any other form of computer or electronic data or information storage or system, and that such Electronic Records shall be final and conclusive of the information and your Instruction and agreement of any matter, save in the case of our manifest or clerical error.
5 Payment and Settlement of Your Investment
5.1 To facilitate an investment transaction settled in cash, you will need to designate a bank account that you hold with us as a Settlement Account, which is governed by our Terms and Conditions Governing Accounts.
5.2 If you purchase an investment product through us, the transaction amount, including any applicable commission, fees, charges, expenses and taxes that has been notified to you prior to you entering the transaction, will be debited from your Settlement Account on Payment Date or such other date as determined by the Bank. We may earmark your Settlement Account for such amount prior to Payment Date. You should ensure you have sufficient funds in such bank account for us to debit.
5.3 We may debit your Settlement Account to fulfill your Instruction and for all fees, charges and payment of all amounts which you may owe us in connection with your investments with us.
5.4 If you do not have sufficient funds in your Settlement Account for us to debit, we reserve the right at our sole discretion,
- not to accept your Instruction to enter into the transaction, in which case, your application for the investment will be deemed void;
- to debit any of your account(s), either singly or jointly, in fulfillment of your investment, Corporate Action or other instructions, or in settlement of your Liabilities to the Bank and/or our Affiliates;
- to grant you an overdraft facility in your Settlement Account or such other account and for such amount as we may determine, secured against Assets you maintain with us. In this regard, you hereby create a first fixed charge over all your Assets held with us as security for your Liabilities and obligations arising from your Instruction or request. This charge is independent of any other charge or security that you may have provided to us previously or may provide in future. You will pay us interest at such rate per annum as we may determine from time to time on all monies due and owing to us, calculated from the date on which such monies are due until the date when full payment is received;
- to sell the investment or additional Assets you contracted, at any time at the prevailing price, and you shall pay us all losses and expenses suffered and/or incurred by us;
- to effect any necessary conversion at our prevailing exchange rate or price if payment is to be made in a different currency and you will pay us such commissions or other fees as we may prescribe for effecting such conversion.
5.5 Any proceeds from the transaction or any amounts due to you in connection with your investment, including but not limited to dividends and redemptions, will be credited into your Settlement Account within a reasonable period.
5.6 Where crediting into the Settlement Account is unsuccessful, regardless of whether crediting is for payment of interest, realisation amount and or maturity amount, we may, at our sole discretion, pay the amount owing to you into any other account you maintain with us or via Singapore Dollar cheque (cashier’s order) or a demand draft denominated in the relevant currency. The cashier’s order or demand draft shall be sent to you by ordinary mail to your last address in our records and shall be deemed to have been received by you on the day following such mail.
5.7 For joint accounts, all account holders agree to be jointly and severally bound by the terms of this Agreement, and to be jointly and severally liable for all liabilities incurred on or debit balance in the account, and all Instructions given and transactions effected.
6 Our Communication with You
6.1 You shall not hold us liable in the event that any communication by us is delayed, intercepted, lost and/or fails to reach you during delivery, transmission or dispatch or if the content of such communication is disclosed to a third party during the transit except where you have conclusively established in the Courts of Singapore that such delay, interception, loss and/or failure to reach you or disclosure to any third party was due solely to our gross negligence or wilful default.
6.2 All letters, confirmations and all forms of communications sent by post to, delivered or left at your last address, including electronic contact details, registered with us will be deemed to have been received on the same day or if by post, the day after the date of posting. You must immediately notify us of any change in your contact details or other particulars submitted to us.
6.3 If we execute a transaction on your behalf, we will send you a confirmation advice (in a form we deem appropriate). You should notify us immediately if you do not receive such advice within 7 days of the expected date of receipt or you receive a confirmation advice of a deal which you did not place.
6.4 If there are inaccuracies in your confirmation advice, you should inform us as soon as possible. If we do not hear from you within 14 days of receipt of the confirmation advice, the confirmation advice shall remain binding.
6.5 We may send you periodic statements on your investments maintained with us. If there are inaccuracies in your statement, you should inform us as soon as possible. If we do not hear from you within 14 days of receipt of the statement, the statement shall remain binding.
6.6 You are cautioned that within the Periodic Statement:
- Account balances and portfolio positions are shown for the period stated. Market values of investments, products or transactions are only indicative as at the applicable value date(s) indicated. Any overdraft interest shown denotes interest charge on (i) amounts overdrawn due to insufficient funds, and (ii) overdraft amounts utilised for accounts with overdraft facility.
- Where applicable, any market value of products or investments that we provide in any transaction record is not intended to imply that an actual trading market exists for the product or investment concerned or that it is appropriate to assume (for accounting or other purposes) that such a trading market exists. Actual trade prices (if any) may vary significantly as a result of various factors, which may include (but are not limited to) prevailing credit spreads, market liquidity, position size, transaction and financing costs, hedging costs and risks and use of capital and profit. Please note that such valuations may differ from those we use for purposes of making collateral calls against you.
- You should consult your own auditors and such other advisors you deem appropriate as to whether these valuations may be useful to you in connection with the preparation of your financial statements (and, in particular, whether and to what extent these valuations may be treated as being indicative of prices at which products, trades or investments could be executed) or for any other purpose. We have not advised you as to the appropriateness of any particular use of the market values provided.
- The market values provided in the statement may have been obtained from third party or other sources which are believed to be reliable. We do not represent, warrant or guarantee, express or implied, their accuracy or completeness and expressly disclaims any responsibility for (i) the reliability or accuracy of any models (including market data input into such models), estimates or assumptions used in deriving the values, (ii) any errors or omissions in computing or disseminating the values, and (iii) any uses to which the values may be put. We do not undertake to correct any values provided or to notify you of any correction. We do not accept any liability of any loss or damage (direct or indirect) arising from any use of any transaction record or its contents or otherwise arising in connection therewith.
- For bonds only: Market values that trade over the counter are traded via networks of brokers and dealers. Prices reflected in our trading systems (including but not limited to online trading systems utilised by you) and statements are based on inputs and quotes from these networks and market data providers. Price sources may depend on the markets in which the bonds trade, and are indicative only. There may be a disparity between the indicative prices and the actual tradable bond prices and this is due to various factors such as market conditions, currency fluctuations, volume or liquidity of the relevant market, as well as the frequency of inputs and updates by the aforementioned networks of brokers and dealers.
7 When we act as principal/agent for you
7.1 Unless we tell you otherwise, we shall be acting as your agent in respect of all transactions. You are therefore principally liable for, and shall assume all risks (including any counterparty or settlement risk) associated with, all transactions entered into pursuant to this Agreement and/or any other Applicable Agreement, notwithstanding that such transactions may have been undertaken in our name without disclosure of such agency. You should read through the specific risk disclosures for the individual investment product you are transacting in.
7.2 Subject to any limitation or condition prescribed by Applicable Laws, we and/or our Affiliate may, in respect of any transaction undertaken on your Instruction:
- be dealing as principal for our or its own account in purchasing from or selling to you investment product;
- be matching such transaction with that of another of our customers or our Affiliate;
- be receiving from any broker, dealer or agent, charges, commissions, fees, rebates, discounts or other payments or benefits and you agree that we or our Affiliate (as the case may be) may retain any such payments or benefits and shall be under no obligation to account for or disclose the same to you; and
- have a direct or indirect material interest in any such transaction.
7.3 Without prejudice to any provision in this Agreement, you acknowledge that we may, from time to time, have to accept sole and principal responsibility to any broker (notwithstanding as between you and us, we act as your agent). You further acknowledge that by reason of the foregoing, the investment products purchased may be regarded by the broker as being purchased by us for our own account and this may result in prejudice to you.
8 Costs and Charges
8.1 We may impose fees and charges in connection with your transaction. Such fees and charges may include commissions and benefits receivable by us. If you are a DBS Treasures customer, such information will be published in the Pricing Guide that is available from our website.
Retention of Price Improvement Benefits
8.2 Any “all-in” price provided by us for investments or transactions entered into with you as principal may include a sales and trading mark-up over the interbank price. Such sales and trading mark-up will not exceed the maximum dollar amount or percentage range detailed in our published Pricing Guide in force at the relevant time, unless you agree otherwise. If we are able to execute the investment or transaction at a better interbank price, you agree that we may retain the benefit from such price improvement provided that the sales and trading mark-up do not exceed the maximum amount or percentage range published in our Pricing Guide, or otherwise agreed with you.
8.3 You are liable for any costs and out-of-pocket expenses incurred by us under this Agreement. For DBS Treasures customers, such expenses which may not be covered in the Pricing Guide.
8.4 We may vary the costs and charges from time to time by giving you notice. All costs and charges are in Singapore dollars unless otherwise stated, and we will debit them from your Settlement Account.
8.5 In the event your Settlement Account has insufficient funds for debiting, we reserve the right to debit any of your accounts for all charges, fees or other sums payable to us in relation to your investment, including fees and charges imposed by third parties, without notice in accordance with Clause 5.4 above.
9 Cancellation and Termination
9.1 We may suspend or terminate this Agreement at any time without having to give any reasons or notice.
9.2 You may terminate this Agreement at any time by giving us written notice.
What happens when this Agreement is terminated
9.3 The Bank has the right, but not the obligation to, sell or otherwise deal with any of your investments or accounts, at our absolute discretion without notice to you where you fail to adhere to the terms and conditions in this Agreement or to comply with any Applicable Laws, or for any other reason as we may reasonably deem fit.
9.4 In cases of early termination of an investment product before its maturity, you may receive less than the principal amount initially invested or potentially lose the entire principal sum invested in the product. In addition, there may be administrative fees, charges and, if applicable, imposed in connection with the early termination of the product. You should refer to the specific product section for more details.
What happens upon your death
9.5 In the event of your death, DBS will suspend its performance of its duties and obligations under this Agreement once notified of your death until further instructed by your executor(s) or the administrator(s). DBS shall act on the requests, applications or instructions of your executor(s) or the administrator(s), who shall be similarly bound by the terms of this Agreement, and in so acting shall be entitled to be reimbursed for any costs and expenses incurred in complying with the requests, applications or instructions of such executor(s) or administrator(s) and shall not be liable for any claims or demands whatsoever by your heirs.
9.6 DBS shall not, in the absence of fraud on the part of DBS be liable to you, your executor(s) or administrator(s) for any losses incurred (to the Portfolio or otherwise) as a result or in the course of the suspension pursuant to Clause 9.1 above.
9.7 Your executor(s) or the administrator(s) shall be the only persons recognised by DBS as having title to your Assets.
9.8 For joint accounts, DBS shall be entitled to act on the Instructions of the surviving party.
10 Indemnity and Liabilities
What we are not liable for
10.1 Any costs, fees or expenses (including legal costs) that are incurred by us as a result of your breach of the terms and conditions of this Agreement or arising out of our enforcement of any of our rights hereunder, shall be recoverable by us from you on a full indemnity basis.
10.2 You shall not hold us liable for acting in good faith or omitting in good faith to act on your Instructions given to us in accordance with our prescribed verification procedure prevailing at the time.
10.3 We are also not liable for any loss, damage, expense you suffer as a result of us acting on Instructions that you give to us in error. We will not be able to unwind transactions, and you should be aware that settlement arrangements in respect of any Product you transact in may restrict the ability to mitigate the consequences of any error trades you make.
10.4 We do not exclude or limit any liability that we may have to you under Applicable Laws, or such liability that we are not allowed to exclude or limit under Applicable Laws.
10.5 We will not be liable to you for any loss:
- (a) which arise from any cause beyond our reasonable control including, but not limited to the events listed below:
- force majeure;
- act of war, terrorism, strike, or civil unrest;
- exercise of governmental or military powers
- market conditions or market disruption event;
- moratorium or restriction on dealings in or any forfeiture or cancellation of our rights or your rights imposed by or resulting from any Applicable Law;
- restrictions on convertibility or transferability;
- involuntary transfers;
- any cause which is beyond its control or which makes it impracticable, illegal or impossible for the Bank to perform its obligations under the Acknowledgment
- which we could not reasonably have anticipated;
- in relation to any loss of business, loss of goodwill, loss of opportunity or loss of profit; or
- unless it was directly caused by our gross negligence, willful default or fraud
10.6 We will not be liable to you for any act we take, or fail to take, which we reasonably believe is necessary to comply with any Applicable Laws.
11 How we handle your information
11.2 If you provide us with the personal data of any individual, you confirm that the personal data that you provided to us is true, accurate and complete, and that you
- have obtained that individual’s prior consent; and
- consent on behalf of that individual,
11.4 Authorities in Singapore and/or foreign jurisdictions may require us to provide information on you and your investments for surveillance and investigation purposes. You understand that we will disclose your personal information requested without prior notice to you to enable us to comply with such disclosure requests made.
11.5 Any consent you give pursuant to the Agreement in relation to personal data shall survive your death, incapacity, bankruptcy or insolvency, as the case may be, and the termination of the Agreement.
12 Other General Clauses
12.1 In the event that any of the provisions of this Agreement shall be determined invalid, void or unenforceable, such provision shall be deemed to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force and effect.
12.2 Non waiver of rights: Any delay or failure by us to exercise our rights and/or remedies under this Agreement or under any charge does not represent a waiver of any of our rights. We shall be considered to have waived our rights only if we specifically notify you of such a waiver in writing.
12.3 Governing law and jurisdiction: This Agreement is subject to Singapore law and you hereby submit to the non-exclusive jurisdiction of the courts of Singapore.
12.4 We may assign or transfer to any third party (including, without limitation, to any other corporation within the DBS Group) any of our rights benefits and obligations without your consent or the need to provide you with any prior notice of such assignment or transfer and you irrevocably consent to any such assignment or transfer by us.
12.5 You may not assign, transfer or otherwise dispose of, charge or pledge any of your rights, benefits or obligations under the facilities and/or the Investments without obtaining our prior written approval.
Contracts (Rights of Third Parties) Act, Chapter 53B
12.6 A person who is not a party to this Agreement may not enforce any of these terms and conditions under the Contracts (Rights of Third Parties) Act, Chapter 53B. Notwithstanding any term of this Agreement, the consent of any third party is not required to vary, release or compromise any liability, or terminate any of the terms of this Agreement.
Changes to this Agreement
12.7 We may amend or vary the terms of this Agreement at any time by giving you written notice through any means we deem fit, and such amendment or variation shall take effect on the date specified in such notice. The obligation to give you prior notice does not apply if amendments and/or variations are required in an emergency or where it is not practicable to give such notice. If you do not accept any amendment or variation, you shall discontinue operating your Account(s) and promptly close your Account(s) and cease to enter into any further Transaction(s). If you continue to operate your Account(s) or request to enter into any Transaction(s) after such notification, you shall be deemed to have agreed to such amendment or variation without reservation.
12.8 You agree to be bound by the terms relating to tax requirements (“Tax Terms”) which forms part of this Agreement and which may be amended, supplemented and/or substituted by the Bank from time to time. The Tax Terms are available at www.dbs.com.sg/tax-requirements
12.9 We may withhold tax on your earnings or proceeds from your investments in accordance with Applicable Laws if you are a non-resident. For the purpose of withholding tax, a joint account would be considered to be an account held by non-residents if one or more of the joint account holders is a non-resident. You must inform us immediately if your tax residence or status changes. We shall process such notification of change within a reasonable period of time (of not less than seven (7) Business Days from receipt).
12.10 You acknowledge and agree that we do not provide any tax advisory or tax reclamation services. With reference to Clause 12.9, we reserve the right not to apply reduced treaty rates even if you a recipient of income sourced from a country which has a double tax treaty with the country you are a tax resident of.
Documents in English, Chinese and Bahasa Indonesia
12.11 Where the product documents are available in languages other than English, the English version of the documents shall prevail and apply in the event of an inconsistency between the English and non-English versions of the documents.
Section 2 – Risk Disclosure Statements
The Risk Disclosure Statements are not an exhaustive list of all the risks involved in entering into a transaction concerning a Product. Specific risks will be disclosed in the offer documents, such as factsheet or term sheet, where applicable. The risks can be substantial. You should consult your advisors on the nature of the Product and carefully consider if the risks are within your risk appetite.
Besides the risks listed under part A. General Risk Disclosure, you should also be aware of the additional risks listed in part B below when investing in the specific products. You should also read and understand part C below if you are investing in Overseas Listed Investment Products.
A. General Risk Disclosures
1. All investments come with risk and you can lose your entire investment amount. Investments should not be treated as bank deposits.
2. Past performance of an investment is not necessarily a guide as to its future performance. The value of the investments can go up or down.
3. Before making any investment decision, ensure that you fully understand
- how the investment product works, and the market in which the investment is traded in. Where applicable, these will be set out in the offer documents, which will be made available for you to read;
- the applicable terms and conditions and be clear on your rights and obligations. These will be set out in the applicable agreement for each investment or transaction;
- all relevant risks, which may include legal and tax risks that you may need to seek professional advice for.
4. Some investments have a maturity date. This means that you may not be able to sell your investment before it matures, or you may have to sell them at a loss before such maturity date.
5. You take on the risk of the product issuer and will likely lose your money if the issuer gets into financial difficulties. Diversify your investments and avoid investing a large portion of your money in a single issuer.
6. For investments that are illiquid, you may not be able to sell your Asset, or you may have to sell it at a loss.
Foreign Exchange Risk
7. Where the investment involves conversion to a different currency, you will be subject to the risk of exchange rate fluctuations that may cause a loss on the investment.
8. Exchange controls may also be applicable in respect of certain foreign currencies. You will bear all exchange rate and exchange control risks for such currency conversion(s).
Interest Rate Risk
9. Interest rate fluctuations may have an adverse impact on the value of certain investments, in particular, debt instruments, such as bonds or money market instruments.
10. Market movements cannot be predicted accurately and you may sustain substantial losses on your investment amount if market conditions move against your positions. Market movements can include changes to price, currency exchange and interest rates. You should fully understand the potential impact of market movements, and note that you could end up losing your entire investment amount.
11. There is a general risk of market failure or collapse which may arise from any political or financial development or any unpredictable event that may immediately result in sharp price movements, volatile market conditions and strained market liquidity.
12. Under certain market conditions, it may be difficult or impossible to liquidate a position, to assess a fair price or assess risk exposure. This can happen, for example, where the market for an investment or transaction is illiquid, where there is:
- no market traders for such investment;
- a failure in electronic or telecommunications systems; or
- occurrence of an event of force majeure (which includes any form of restriction, moratorium or suspension on trading imposed by an exchange, market or other authority regulating trading in the Investments or transactions)
Investments or Transactions in Other Jurisdictions
13. Investments or transactions on markets in other jurisdictions other than your home jurisdiction may expose you to additional risk. Such markets may be subject to regulations that may offer different or diminished investor protection
14. When you trade in a foreign jurisdiction, you should also take into account the applicable tax and exchange controls, including whether you are able to repatriate the principal and profits.
15. Before you trade, you should enquire about any rule relevant to your particular investment or transaction. Your local regulatory authority may be unable to compel the enforcement of rules of the regulatory authorities or markets in other jurisdictions where your Investments or transactions have been effected. You should be aware about the types of redress available in both your home jurisdiction and the other relevant jurisdictions before you trade.
16. Emerging markets typically refer to markets in countries with moderate to low per capita national income. While Investments or transactions involving emerging markets financial instruments may yield large gains, they can also be highly risky and unpredictable. There may be inadequate regulations and safeguards available to investors. Besides the risks inherent in all investments, those associated with emerging markets include country risk where government intervention in markets, perhaps in the form of exchange control laws or restrictions in the repatriation of profits, may affect the value of any investment or transaction or your ability to enjoy its benefits. In addition, events (for instance, natural disasters, fluctuations in commodity prices and/or exchange rates and political upheavals) which may have a minor or limited effect in more mature markets could affect emerging markets profoundly.
17. Any investment or transaction involving emerging markets financial instruments or referencing an emerging market needs careful assessment of the risks in relation thereto (including sovereign risk, issuer risk, price risk, political risk and liquidity risk).
Non-Transferability & Non-Marketability
18. Generally, an investment or transaction cannot be assigned or transferred without the consent of the counterparty. In this regard, we are not obliged to terminate, unwind or repurchase any investment or transaction from you. If your investments or transactions are customised and not fungible, engaging in a transaction with another dealer to offset a transaction you have entered into with DBS, whether on your behalf or otherwise, will not automatically close out those positions (as would be true in the case of equivalent exchange-traded futures and options) and will not necessarily function as a perfect hedge and may increase the risk to you. It may also be difficult or impossible to liquidate an existing position, assess the value thereof, determine a fair price or assess the exposure to risk.
Indicative Values of Derivative Transactions & Non-Listed Instruments
19. In respect of investments or transactions in financial derivatives and non-listed financial instruments, in particular in “combined” or “structured” transactions, the absence of a “market” or “common” reference price may make it impossible for us to provide the precise value of that investment or transaction. You should therefore be aware that the price indications provided by us are always based on the latest available market prices (if any) of the underlying instrument or have been derived from sources believed to be reliable. Consequently, price indications provided by us may not reflect the actual price at which an investment or transaction may be terminated or unwound, if this is possible at all. We do not make any representation as to the accuracy or completeness of price indications for any investment or transactions and do not accept liability for any losses arising from your reliance on such indications.
Off-Exchange Investments or Transactions
20. Off-exchange investments or transactions may be less regulated or subject to a separate regulatory regime and as such, the risk is correspondingly higher. Additionally, such off-exchange investments or transactions may be non-transferable and therefore, it may be difficult or impossible for you to close out or liquidate an open position. Situations may also arise where no market traders are prepared to deal in such off-exchange investments or transactions or no proper information may be available to determine the value or the fair price of such investments or transactions or to assess the exposure to risk. Before entering into any such off-exchange investments or transactions, you should fully familiarise yourself with all applicable rules and the attendant risks.
Leveraged Transactions / Margin Trading
21. Leveraging may be undertaken by way of a loan, utilisation of margin trading facilities or may be embedded within an instrument such as a structured note. The high degree of leverage resulting from a relatively small margin requirement in respect of any investment or transaction can work against you as well as for you due to fluctuating market conditions. The use of leverage can lead to large losses in excess of the original invested amount, as well as gains.
22. When you undertake any investment or transaction using any margin trading facilities extended to you, you must read through the factsheet (where available), and the facility letter. If you do not agree to the terms and conditions of such facilities, you should not take up the facility.
Counterparty Risk and Credit Risk
23. If we are your counterparty to any investment or transaction, you are taking on and are subject to the credit risk of DBS Bank Ltd. You understand that we deal with you at arms’ length as your counterparty. We are not your fiduciary, nor do we accept any fiduciary obligation owed to you. You acknowledge that your dealing, trading or engagement or transaction with us could result in a loss to you and a gain for us. Subject to any Applicable Law, we are not obliged to account to you for the gain that we enjoy.
24. Where we are not your contractual counterparty or the issuer, your contractual counterparty or the third party issuer, and not us, will be liable to you under that investment or transaction. Accordingly, in considering whether to enter into any investment or transaction, you should take into account all risks associated with such counterparty or third party issuer, including the counterparty’s or third party issuer’s financial standing.
25. Often, you will be purchasing an unsecured obligation of such counterparty (as opposed to an obligation of a central clearing corporation as would be the case with exchange traded futures and options) and you should evaluate the comparative credit risk. In addition, there is a risk of counterparty or issuer default which may arise from, inter alia, insolvency factors.
26. You agree that any investment or transaction entered into on your behalf with any counterparty and/or broker is subject to the prevailing terms and conditions as may be stipulated by such counterparty and/or broker and is dependent on the performance, settlement or delivery by such counterparty and/or broker. Any insolvency or default of such counterparty and/or broker may result in losses to you or lead to your positions being liquidated or closed out without prior notice to or consent from you. In certain circumstances, you may not get back the actual Assets which you have deposited as collateral with us and you may have to accept any available payment in cash.
27. Certain transactions may also involve you assuming other credit risks and you should ensure that you are able to evaluate all such risks.
28. You should familiarise yourself with the protections accorded to Assets deposited by you in connection with any investment or transaction, particularly in the event of insolvency of DBS or an issuer, counterparty, custodian or intermediary. The extent to which you may recover your Assets will be governed by Applicable Laws and you may in certain cases fail to recover all of your Assets. In some jurisdictions, property which had been specifically identified as your own will be pro-rated in the same manner as cash for the purposes of distribution in the event of a shortfall.
Transaction Costs & Tax
29. Before entering into any investment or transaction, you should request for a clear explanation of all commissions, fees and other charges for which you will be liable. Your net returns from any investment or transaction would be affected by any such commissions, fees and other charges, as well as any relevant tax liability (such as income tax). The tax implications of any investment or transaction are dependent upon the nature of your business activities and the investment or transaction in question.
30. You should be aware that the interest payable by you under any Credit Facilities (where applicable), foreign exchange risks and any negative gearing are variables that add to the risks of any investment or transaction.
Conflict of Interests Disclosures
31. DBS may play a variety of roles in connection with any security or investment. We may hold, or trade, or act as market-maker, in any security or investment or in related derivatives. We conduct many businesses and activities that may relate to issuers in respect of your investments and may provide broking, banking and other financial services to such issuers. In carrying out these roles, our economic interests may potentially be adverse to your interests in the investment. We may be in possession of information in relation to the investment that is or may be material in the context of that investment and that may or may not be publicly available or known to you, and we are not obliged to disclose to you any such information (whether or not it is confidential).
32. Regardless of whether you or any third party make a profit or loss from any investment or transaction, we may make a profit from any investment or transaction entered with you or on your behalf. Subject to any Applicable Law, we are not required to account or specifically disclose to you any profit, charge or remuneration made or received from any such investment or transaction or other connected investments or transactions.
B. Specific Products Risk Disclosures
Besides the risks listed under the General Risk Disclosure above, you should also be aware of the additional risks when investing in the following specific products.
Unless otherwise defined in Section 1, capitalised terms used herein shall have the same meaning and construction in Section 4 – Additional Terms and Conditions Governing Investment Products and Services. Please refer to the specific product or service for more information.
1.1 Unit trusts
1.11 Unit trusts are not bank deposits or obligations of or guaranteed by us, or any of our Affiliates. A unit trust 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 are naturally subject to investments risks including the possible loss of the principal amount invested. The value of units and the income from any unit trust may rise or fall and cannot be guaranteed. Past performance of a unit trust is not necessarily indicative of the future performance of that unit trust.
1.12 Any forecast or opinion provided to you by the fund manager are as at the date of the document and is subject to change from time to time. Such forecasts or opinions should not be regarded as a guarantee of future or likely performance of the unit trust. You should also note that there are necessarily limitations whenever performance is stated or comparison is made to another unit trust for a period of less than three (3) years and that there are limitations and difficulties in using any graph, chart, formula or other device to determine whether or not and when to make an investment in any unit trust.
1.13 An indictive price on the net asset value of the unit is provided at the point of sale. This may differ substantially from the actual net asset value price that you transact in, especially if market movements become adverse
1.2 Exchange Traded Funds
1.21 Exchange traded funds are open-ended investment funds listed and traded intra-day on an Exchange. Exchange traded funds are not principal protected and you may not get back your original investment. You should also be aware that exchange traded funds may not make any dividend distributions, even if the underlying securities it holds do so.
1.22 An exchange traded fund is exposed to the liquidity and market risks of the securities it holds and may incur substantial Losses due to the inability to dispose of its holdings of any affected securities. Further, an exchange traded fund may concentrate its investments in issuers of one or more particular industries or geographical regions. If the particular industry or geographical location performs poorly, this will magnify the negative impact on the value of the exchange traded funds.
1.23 You should also be aware that most exchange traded funds are not actively managed. Accordingly, exchange traded funds may be adversely affected by a decline in the market segments relating to its underlying securities.
1.24 A number of factors may also affect an exchange traded fund’s ability to achieve a high correlation with its underlying securities and there can be no guarantee that an exchange traded fund will achieve a high degree of correlation. A failure to achieve a high degree of correlation may prevent an exchange traded fund from achieving its investment objectives.
1.25 There is a risk that the exchange traded fund manager’s strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. This risk is especially pertinent when the exchange traded fund does not replicate its underlying securities, but instead holds non-index securities.
1.26 The value of an exchange traded fund may decline when the counterparty with whom the exchange traded fund purchases financial instruments from and/or enter into agreements with, becomes insolvent or otherwise fail to perform their obligations for any reason.
1.27 You should take note of the following additional risks (which are not exhaustive) if you invest in non-traditional exchange traded funds:
- Non-traditional exchange traded funds may employ the technique of short selling to achieve an investment exposure consistent with its investment objective. The use of such short selling technique may involve additional transaction costs and other expenses. As a result, the cost of maintaining a short position may exceed the return on the position, which may cause the non-traditional exchange traded fund to lose money. Under certain market condition, short selling can increase the volatility and decrease the liquidity of certain securities and may lower the return or result in losses to the non-traditional exchange traded fund.
- Non-traditional exchange traded funds may seek to provide a return which is either a multiple and/or an inverse of the daily performance of its underlying investments. A non-traditional exchange traded fund rebalances its portfolio on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses and there is a risk of a near complete loss of the value of the non-traditional exchange traded fund. Non-traditional exchange traded funds are designed as short-term trading vehicles for investors who intend to actively monitor and manage their portfolios. They are not intended and/or suitable for investors who do not intend to actively monitor and manage their portfolio.
- For investments or transactions involving leveraged non-traditional exchange traded funds, you will be exposed to the risk that any adverse daily performance of that exchange traded fund’s underlying will be leveraged.
- Inverse exchange traded funds, a type of non-traditional exchange traded fund, are negatively correlated to their underlying and could lose money when the indices rise. This is a result that is opposite from conventional exchange traded fund.
1.3 Non-traditional Funds
1.31 Non-traditional funds are investment companies which differ from traditional equity and bond Investments on account of their investment style. Such non-traditional funds include hedge funds, alternative investment funds and offshore funds.
1.32 If you invest in non-traditional funds, you should be aware of the following risks (which are not exhaustive):
- The investment strategies adopted by such non-traditional funds are often high risk and highly complex. Further, due to the use of leverage, a small movement in the market can lead to a major gain, but any losses will also be magnified sharply. In certain circumstances, the entire amount of your Investment could be lost.
- The non-traditional fund industry is largely unregulated and the availability, quality and flow of information may be significantly less than that for traditional investment products. Investors may not be kept informed about the fund’s strategies or changes to the fund management team.
- The liquidity and tradability of non-traditional funds can vary a great deal and fixed holding or “lock-up” periods lasting many years are not unusual. Liquidations of such funds may also stretch over many years.
- Certain non-traditional funds may provide for powers to compulsorily redeem all or any portion of an investor’s holdings at any time and for any reason upon short notice. The proceeds that an investor may receive upon such redemption may be substantially less than the amount invested in the fund.
- Many non-traditional funds have an offshore domicile and may be subject to less stringent legislation and supervision, which in turn offers poorer investor protection. Problems or delays may arise in the settlement of buy and sell orders for units in such funds. There is also no guarantee that your legal rights under the non-traditional funds will be enforceable.
1.33 Non-traditional funds can take countless different forms and involve a high degree of risk. Before undertaking any investment or transaction involving non-traditional funds, you should carefully study any information (including the fund offering documents) on the relevant Investment or transaction
2. Structured Deposits
2.1 Structured Deposits are not bank deposits and are investment products. The returns on Structured Deposits are not guaranteed and are usually contingent on the performance of one or more relevant underlying assets.
2.2 Structured Deposits are also not insured under Singapore Deposit Insurance Corporation. Structured Deposits cover a wide range of investment products and may include range deposits and such like products. Prior to entering into any investment or transaction involving Structured Deposits, you should read and understand all the relevant terms and conditions of, and the risks associated with, such Structured Deposits.
2.3 Structured Deposits are generally held for longer tenors than traditional fixed or time deposits, and must be held to maturity. An early termination of the Structured Deposit is subject to our approval, and may come with high penalty costs. This means that you may receive substantially less than your principal investment amount.
3. Currency Linked Investment (“CLI”)
3.1 CLI involves a currency option which confers on us the right to repay the principal amount and interest accrued thereon on the CLI Maturity Date in either the base currency or an alternate currency. All or part of the interest received on the CLI represents the premium on the currency option. If you enter into a CLI, you must be prepared to receive the principal amount and accrued interest in the alternate currency, converted at the pre-agreed exchange rate on the CLI Maturity Date. This may result in you receiving less than the principal amount initially invested, when such amount in the different currency is converted back to the base currency.
3.2 CLI is subject to exchange rate fluctuations which may affect the returns on such investment. If the exchange rate moves against your favour, you may incur a loss on your principal sum in comparison with the amount initially invested.
3.3 A CLI may be subject to early termination by us before maturity upon the occurrence of an Extraordinary Event (including, the imposition of exchange control restrictions or any devaluation, redenomination or demonetisation of the base currency or the alternate currency). In such instances, you may receive less than the principal amount initially invested.
3.4 Any payment you may receive upon such premature termination may be substantially less than the principal amount initially invested.
The specific risks for digiPortfolio are described in the digiPortfolio Terms and Conditions. It can be found on our website: https://www.dbs.com.sg/personal/digiportfolio-tnc.page
5. Securities Trading / Transactions
5.1 On certain exchanges, the performance of a transaction by a broker (or any third party with whom (s)he is dealing on your behalf) may be “guaranteed” by that exchange. However, any such guarantee is unlikely in most circumstances to provide full cover and may not protect you completely if the broker or the third party defaults on its obligations to you.
5.2 If you place a “market order”, your transaction may be executed at a price substantially different from the indicative traded price at the point of order placement. You may have to pay a lot more for your purchase or receive a lot less for sale of your securities.
5.3 Placing contingent orders (such as “stop-loss” or “stop-limit” orders, which are intended to limit Losses to certain amounts) may not necessarily limit your Losses to the intended amounts, as it may be difficult or impossible to execute such orders either in accordance with your Instructions, or at all, under certain market conditions. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses. Accordingly, you accept and bear the risk of, and hereby release and discharge us from, all liability arising out of the execution or the non-execution of a “stop-loss” or “stop-limit” order and pursuant to such acceptance authorise DBS, should any such circumstances occur, to execute any order at such rate and in such manner as DBS may deem appropriate. Strategies using combinations of positions, such as “spread” and “straddle” positions, may be as risky as taking simple “long” or “short” positions.
5.4 The prices of securities fluctuate, sometimes dramatically. The prices of securities may move up or down. In certain circumstances, the securities may become valueless. There is therefore an inherent risk that losses rather than profits may be incurred as a result of buying and selling securities.
Exchange Traded Instruments, Trading Facilities & Electronic Trading
5.5 In respect of investments or transactions involving underlying contracts or instruments which are traded on an exchange, market conditions of the exchange (such as liquidity) and/or the operation of the rules of such exchange (such as any discretion on the part of the exchange to suspend or limit trading of any contract or instrument because of price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect any transaction (including closing out any investment or transaction) or liquidate or offset any position. Under certain circumstances, the specifications of outstanding contracts (including the exercise price of an option) may also be modified by the exchange or clearing house to reflect changes in the underlying interest.
5.6 Electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover losses may be subject to limits on liability imposed by one or more parties, including the system provider, the exchange, clearing house or member firms and such limits may vary. You should obtain details in this respect from the relevant parties.
5.7 If you trade through or on an electronic trading system, you will be exposed to the risks of any defect, deficiency or malfunction in, and/or any breakdown, disruption or failure of, any telecommunications, computer or other electronic equipment or system associated with such electronic system. This could result in a disruption in the trading activities at the exchange or an unavailability of reference prices for the relevant Investment or transaction. In such circumstances, the investment or transaction may not be executed according to your Instructions or may not be executed at all, which may lead to losses to you.
Alternative Stock Markets
5.8 Alternative stock markets (such as the Growth Enterprise Market in Hong Kong) are often established as a market designed to accommodate companies with higher investment risk. In particular, companies may list on an alternative stock market with neither a track record of profitability nor any obligation to forecast future profitability. There may be risks arising out of the emerging nature of companies listed on an alternative stock market and the business sectors or countries in which such companies operate. Securities listed on such alternative stock markets may be susceptible to higher market volatility and/or a lack of liquidity, as compared to main board listed securities. The higher risk profile and characteristics of an alternate stock market mean that it is a market more suited to professional and other sophisticated investors.
5.9 You should also be aware that companies listed on an alternative stock market are generally not required to issue announcements in gazetted newspapers. As such, the principal means of information dissemination on such markets is through publication on an internet website. Accordingly, you should ensure that you have access to up-to-date information on the companies listed on an alternative stock market as published on the relevant internet website.
See also part C below on Overseas Listed Investment Products Risk Disclosures
China Connect Service
5.10 Mainland China is the home market of China Connect Securities. All relevant Mainland China securities laws and regulations shall apply to you. Certain Hong Kong legal and regulatory requirements may also apply.
5.11 You should be aware of the restrictions placed on the use of the China Connect Service may be more than the restrictions placed on other exchanges, including but not limited to the following:
- Day trading is not permitted on the Mainland China A Shares market;
- Trading of any China Connect Securities can only be done through the China Connect Market System;
- Market orders will not be accepted – only limit orders with a specified price are allowed, where buy orders must not be lower than the current best price and sell orders may be executed at or higher than the specified price.
- China Connect Shares are subject to a general price limit of a range of percentages based on the previous trading day’s closing price. Such price limit may be changed from time to time;
- Naked short selling is prohibited;
Such restrictions as listed above mean that there may a limited market and/or lower liquidity for China Connect Shares purchased through China Connect, including any scrip entitlements that you receive in respect of China Connect Shares.
5.12 By using the China Connect Service, you are subject to the laws and regulations by the relevant China Connect authorities, which includes but is not limited to the China Securities Regulatory Commission, the People’s Bank of China, the State Administration of Foreign Exchange and the Securities and Futures Commission of Hong Kong You have to adhere to the Applicable Laws, which may be more extensive than those governing trades conducted on other jurisdictions. If you are unsure on the rules that apply, you should seek specialist advice before engaging in trading through China Connect.
6. Bonds / Fixed Income Investments (“Bonds”)
6.1 Fixed income instruments such as Bonds are debt instruments issued by entities to raise funds. Although investments in Bonds are perceived to be conservative investments and more predictable than equities, they are not without risks.
6.2 Bonds are not deposits and are not eligible for deposit insurance coverage under the Singapore Deposit Insurance Scheme.
6.3 You take on the credit risk that the Bond issuer and may lose all or part of your principal amount if the issuer gets into financial difficulties. In this regard, published ratings of any Bond issuer should be supplemented by your own credit analysis of the issuer’s credit risk as changes in the ratings of any issuer may lag behind changes in financial conditions. You should perform periodic analysis to determine the credit risk of the Bond issuer and evaluate the merits and risks of such investment.
6.4 You are exposed to liquidity risk as there may be no market for the Bond and you may not be able to sell it at the desired time or price. Even when a market exists, there may be a substantial difference between the offer and purchase price for the Bond.
6.5 You are exposed to the risk of interest rate fluctuations as the value of Bonds will fluctuate with changes in interest rates. The degree of interest rate sensitivity depends on the maturity, coupon and call provisions of the Bond. Floating rate Bonds lessen your interest rate risk to the extent that the interest rate adjustments are responsive to market rate movements. If the Bond issuer of has the right to redeem the Bond before maturity, this can adversely affect your exposure.
7. Structured Notes (“Notes”)
7.1 Notes comprise of a debt like instrument linked to a specific Underlying Asset which may include stocks, bonds, currencies, commodities, indices and/or funds. Notes are not deposits or an obligation of, nor are they guaranteed or insured by DBS (unless otherwise stated in the relevant term sheet for the Notes) and are subject to investment risks including the possible loss of the principal amount invested. We accept no responsibility for the performance of any of the Notes or the Underlying Asset.
7.2 You are assuming the full credit risk of the Notes Issuers as well as the issuers of the Underlying Assets. The value of the Underlying Assets may be affected by the activities undertaken by the asset issuers, or any financial or economic difficulties the asset issuer may face. This may in turn affect the redemption under the Notes. In the worst-case scenario, where the issuer or the Underlying Asset becomes insolvent or default on its obligations, you will lose your original investment amount.
7.3 Where physical delivery of Underlying Assets is allowed, and if delivery is not practicable by reason of a settlement disruption event, the delivery date will be postponed until such time as the settlement disruption event ceases. You will not be entitled to receive any compensation in respect of such delay. Where such a delay occurs, the market price of the relevant Underlying Asset may deteriorate further during the period of such delay. The issuer has the sole discretion to pay the disruption cash settlement price in lieu of effecting delivery of the relevant Underlying Asset if a settlement disruption event occurs. You do not have any right to elect to receive the disruption cash settlement price in lieu of delivery of the relevant Underlying Asset. The disruption cash settlement price is likely to be substantially less than the original amount invested.
7.4 DBS may play a variety of roles in relation to the Notes, including acting as issuer, calculation agent as well as hedging its obligations under the Notes. DBS may also enter into, adjust and unwind transactions relating to the relevant Underlying Asset(s), whether for its proprietary accounts or for accounts under management or to facilitate transactions on behalf of customers or otherwise. In carrying out these roles, DBS’ economic interest and those of its affiliates may be potentially against your interests under the Notes.
7.5 There may be limited liquidity for the Notes in the secondary market and if such market is available, the market price of the Notes may fluctuate depending on the factors such as the conditions of the market(s) where the Underlying Asset is traded, the sentiments towards and price movements of the Underlying Asset and the creditworthiness of the Issuer. DBS, under no circumstances, guarantees a market for the Notes.
7.6 Where the Notes are issued with a maturity date, you should note that there are risks involved if you redeem or sell the Notes prior to the maturity date. The buyback price quoted will be determined by the Notes issuer or its calculation agent in its absolute discretion and may depend on various factors as may be set out or described in any offering document or Term-sheet or other document governing the Notes. Even if the Notes are principal protected, you may lose part or all of the principal amount if you opt for buyback, withdrawal or termination before the said maturity date. Before investing in the Notes, you should ensure that you can stay invested up to the maturity date.
7.7 You need to consider your ability to re-invest the principal investment amount in other suitable products with similar returns and tenors, where the Notes have been early redeemed.
8.1 Gold investments are not deposits. A Gold Account is not eligible for deposit insurance coverage under the Singapore Deposit Insurance Scheme.
8.2 You will be subject to the risk of exchange rate fluctuations if the Gold investment is not in the currency you ordinarily transact in. Exchange controls may also be applicable in respect of certain foreign currencies. You will bear all exchange rate and exchange control risk for such currency conversion(s).
8.3 Investments in Gold are subject to price fluctuations which may provide both opportunities and risks. Past performance of Gold is not indicative of future results as prices of Gold can go up or down. For example, if Gold prices drop to a level lower than your initial purchase price, you will suffer losses on your initial investment.
8.4 There may be adjustments to the terms of your Gold Account(s) due to events including but not limited to market disruption, insolvency and changes in any applicable laws and such adjustments may reduce the amount payable to you.
8.5 Unless we decide otherwise at our sole discretion, we will not make or receive any physical delivery of any Gold in whatever form under any circumstances and you will not be permitted to make any purchases or sale of physical Gold to or from your Gold Account(s) (even upon closure of your Gold Account. You shall have no interest, proprietary or otherwise, in any Gold held by the Bank, its agents and/or custodians, whether on your behalf or otherwise.
8.6 In maintaining your Gold Account(s), you are taking on and are subject to the credit risk of DBS.
8.7 There may be significant risks, including but not limited to liquidity risks and other significant risk factors of a complex character that you should consider based on each specific Gold Transaction entered into.
9. Forwards & Futures
9.1 Forwards and futures entail the obligation to deliver or take delivery on a specified expiration date of a defined quantity of an underlying asset at a price agreed. Futures are standardised contracts traded on an Exchange while forwards are traded over-the-counter. Forwards and futures may involve high degree of risks.
9.2 When buying or selling an underlying asset by way of a forward or futures contract, a specified initial margin must often be supplied at the beginning of the investment or transaction. We may require additional margin to be provided periodically or at any time during the life of the forward or futures contract if we determine that the margin provided by you has fallen below the amount required by us. This usually corresponds to the mark-to-market loss arising from a decline in value of the investment or transaction or the underlying assets.
9.3. For forward sales, the underlying asset must be delivered at the strike price agreed even if its market value has risen since the date the investment or transaction was entered into. The seller thus does not benefit from the increase in the market value above the agreed strike price.
9.4. For forward purchases, the buyer must take delivery of the underlying asset at the strike price agreed even if its market value has fallen since the date the investment or transaction was entered into. The buyer’s potential loss would be the difference between the agreed strike price and the market value of the underlying assets. The maximum Loss corresponds to the strike price. Notwithstanding, potential losses can substantially exceed any margin requirements.
10.1 Options are essentially contracts whereby the owner of the options has the right, but not the obligation, to purchase or sell an asset at a fixed price at or by a specific date. Investments or transactions involving options carry a high degree of risk and are not suitable for many members of the public. You should only enter into such Investments or transactions after you have read, understood and familiarised yourself with the type of options, style of exercise, the nature and extent of rights and obligations and all associated risks.
10.2 If you purchase an option, you should be aware of the following:
- Under certain adverse market conditions when the market moves against an option position, the purchased option can be worthless and you will suffer a total loss of the original investment which would consist of the option premium and the transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that ordinarily, the chance of such options becoming profitable is remote.
- In order to realise any value from the option, it will be necessary either to offset the option position or to exercise the option.
- Some option contracts may provide only a limited period of time for the exercise of the option, and some option contracts may provide for the exercise of the option on a specified or stipulated date. For barrier options, the exercise rights will only arise when the market value of the underlying instrument reaches the barrier (in the case of knock-in options) or will expire irrevocably when that barrier is reached (in the case of knock-out options).
- Exercising an option results either in a cash settlement, or the acquisition or delivery of the underlying instrument.
10.3 Buying options involves less risk than selling or writing options because if the price of the underlying instrument moves against you, you can simply allow the option to lapse and your maximum Loss is limited to the premium, plus any commission or other charges. However, if you buy a call option on an underlying instrument and later exercise the option, you will acquire the underlying instrument and therefore expose yourself to the risks on the underlying instrument.
10.4 The risks associated with selling or writing an option is generally greater than purchasing an option. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of the amount of premium received. The seller may also be required to deposit additional margin to maintain the position if the market moves unfavourably. If the purchaser exercises the option, the seller would be required to either settle the option in cash, or acquire or deliver the underlying instrument. If the option is “covered” by the seller holding a corresponding position in the underlying instrument or another option, the risk may be reduced. An option is described as “covered” if the option seller already has a corresponding quantity of the relevant underlying instrument at its disposal. Conversely, if the option is not covered, the possible loss will be unlimited.
10.5 You should carefully calculate the price and the exchange rate (where applicable) which the underlying instrument would have to reach for the option position to become profitable. This would include amounts by which the underlying instrument or the extent at which the exchange rate would have to rise above or fall below the strike price to cover the sum of the premium and all other costs incurred in entering into and exercising or closing the option position.
10.6 Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser of an option to margin payments not exceeding the amount of the premium. Nonetheless, the purchaser of an option is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.
10.7 Apart from plain vanilla put and call options, there are other types of options, including non-deliverable foreign exchange options, acquisitions of two or more options commonly known as a combination, and exotic options. There is no limit to the structures, types and terms of such options. Investments or transactions involving such options are very complex and high risk.
11.1 A swap transaction involves an exchange of future payment streams, and occasionally, also an exchange of principal at the start of the transaction or on maturity. Examples of swap transactions include interest rate swaps, currency swaps and total return swaps.
11.2 An investor who enters into an interest rate swap will be subject to interest rate risk. Interest rates movements will affect the swap’s cash flow and mark-to-market value. If the swap involves payments in different currencies, your position will also be affected by fluctuations in exchange rates. As movements in interest and exchange rates may be influenced by a variety of factors, such as inflationary fears and a weakening currency, it is often difficult to anticipate such movements.
11.3 A party to a swap transaction also runs the risk that the counterparty will default or otherwise fail to perform its obligations.
11.4 A swap agreement may also be combined with an option and is known as a “swaption”. As a hybrid, a swaption generates two important exposures: (a) the probability of exercise and (b) the credit risk emerging from the swap. The credit risk of any swaption is the cost to one counterparty of replacing the swaption in the event that the other counterparty is unable to perform. You should also be aware that liquidity risk is high for swaption with long-dated option components.
12. Credit Derivatives
12.1 Credit derivatives are financial instruments that permit one party (the beneficiary) to transfer the credit risk of a reference asset (such as traded sovereign and corporate debt instruments or syndicated bank loans), which it typically owns, to another party (the guarantor) without actually selling the reference asset. Credit derivatives can take the form of swaps, options or hybrid financial instruments.
12.2 Credit derivatives involve a liquidity risk. Often, such instruments cannot be sold before maturity as there is no market for such instruments. Investors will additionally be exposed to the credit risk on each of the reference assets, as well as the issuer of the reference assets. Investments or transactions involving credit derivatives carry a high degree of risk.
13. Private Equity Investments
13.1 Private equity investments generally involve the placing of investment capital in private companies and/or Funds. Such capital may be used for a variety of purposes, including financing of high-risk projects which are expected to generate higher returns, making acquisitions and corporate restructuring.
13.2 The contractual conditions governing a private equity investment often require the contribution of liquid funds in a substantial amount and for a considerable period of time. Such contributions are made either by a single payment or by several payments over a certain period of time. Once you have made the commitment to invest, you must be ready to meet calls for capital contribution, known generally as “capital calls” or “commitment calls”, which may be made at short notice. The penalty for failure to honour any capital or commitment calls can be extreme, including a complete forfeiture of any capital already invested.
13.3 Any capital invested by you may be tied up, either completely or with restricted access, during such period. As there is no recognised secondary market in private equity investments, such Investments may not be sold and/or transferred freely.
13.4 Private equity investments may be realised in several ways, including a sale of the participations through eventual public listings on exchanges, mergers with other companies, a sale to another interested party or a recapitalisation. Considerable losses, or even a total loss of your investment may occur, for example, when such private companies and/or funds are either wound up or declared insolvent and/or the commercial interest in the business of the private companies or funds cease to exist.
C. Overseas Listed Investment Products Risk Disclosures
An overseas-listed investment product* is subject to the laws and regulations of the jurisdiction it is listed in. Before you trade in an overseas listed investment product or authorise someone else to trade for you, you should be aware of:
- The level of investor protection and safeguards that you are afforded in the relevant foreign jurisdiction as the overseas-listed investment product would operate under a different regulatory regime.
- The differences between the legal systems in the foreign jurisdiction and Singapore that may affect your ability to recover your funds.
- The tax implications, currency risks, and additional transaction costs that you may have to incur.
- The counterparty and correspondent broker risks that you are exposed to.
- The political, economic and social developments that influence the overseas markets you are investing in.
These and other risks may affect the value of your investment. You should not invest in the product if you do not understand or are not comfortable with such risks.
*An “overseas-listed investment product” in this statement refers to a capital markets product that is approved in-principle for listing and quotation only on, or listed for quotation or quoted only on, one or more overseas exchange(s).
1. This statement is provided to you in accordance with paragraph 41C of the Notice on Recommendations on Investment Products [FAA-N16].
2. This statement does not disclose all the risks and other significant aspects of trading in an overseas-listed investment product. You should undertake such transactions only if you understand and are comfortable with the extent of your exposure to the risks.
3. You should carefully consider whether such trading is suitable for you in light of your experience, objectives, risk appetite, financial resources and other relevant circumstances. In considering whether to trade or to authorise someone else to trade for you, you should be aware of the following:
Differences in Regulatory Regimes
- Overseas markets may be subject to different regulations, and may operate differently from approved exchanges in Singapore. For example, there may be different rules providing for the safekeeping of securities and monies held by custodian banks or depositories. This may affect the level of safeguards in place to ensure proper segregation and safekeeping of your investment products or monies held overseas. There is also the risk of your investment products or monies not being protected if the custodian has credit problems or fails. Overseas markets may also have different periods for clearing and settling transactions. These may affect the information available to you regarding transaction prices and the time you have to settle your trade on such overseas markets.
- Overseas markets may be subject to rules which may offer different investor protection as compared to Singapore. Before you start to trade, you should be fully aware of the types of redress available to you in Singapore and other relevant jurisdictions, if any.
- Overseas-listed investment products may not be subject to the same disclosure standards that apply to investment products listed for quotation or quoted on an approved exchange in Singapore. Where disclosure is made, differences in accounting, auditing and financial reporting standards may also affect the quality and comparability of information provided. It may also be more difficult to locate up-to-date information, and the information published may only be available in a foreign language.
Differences in legal systems
- In some countries, legal concepts which are practiced in mature legal systems may not be in place or may have yet to be tested in courts. This would make it more difficult to predict with a degree of certainty the outcome of judicial proceedings or even the quantum of damages which may be awarded following a successful claim.
- The Monetary Authority of Singapore will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions will be effected.
- The laws of some jurisdictions may prohibit or restrict the repatriation of funds from such jurisdictions including capital, divestment proceeds, profits, dividends and interest arising from investment in such countries. Therefore, there is no guarantee that the funds you have invested and the funds arising from your investment will be capable of being remitted.
- Some jurisdictions may also restrict the amount or type of investment products that foreign investors may trade. This can affect the liquidity and prices of the overseas-listed investment products that you invest in.
Different costs involved
- There may be tax implications of investing in an overseas-listed investment product. For example, sale proceeds or the receipt of any dividends and other income may be subject to tax levies, duties or charges in the foreign country, in Singapore, or in both countries.
- Your investment return on foreign currency-denominated investment products will be affected by exchange rate fluctuations where there is a need to convert from the currency of denomination of the investment products to another currency, or may be affected by exchange controls.
- You may have to pay additional costs such as fees and broker’s commissions for transactions in overseas exchanges. In some jurisdictions, you may also have to pay a premium to trade certain listed investment products. Therefore, before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
Counterparty and correspondent broker risks
- Transactions on overseas exchanges or overseas markets are generally effected by your Singapore broker through the use of foreign brokers who have trading and/or clearing rights on those exchanges. All transactions that are executed upon your Instructions with such counterparties and correspondent brokers are dependent on their respective due performance of their obligations. The insolvency or default of such counterparties and correspondent brokers may lead to positions being liquidated or closed out without your consent and/or may result in difficulties in recovering your monies and assets held overseas.
Political, Economic and Social Developments
- Overseas markets are influenced by the political, economic and social developments in the foreign jurisdiction, which may be uncertain and may increase the risk of investing in overseas-listed investment products.
Section 3 – Custody Service Terms
1. These Terms and Conditions Governing Custodial and Nominee Services (“Custody Terms”) shall apply if our services involve placing your Assets in custody with us, whether in Singapore or elsewhere (“Custody Service”). These Custody Terms do not apply to any Assets that are in CPF or SRS accounts.
2. In the event of any conflict or inconsistency between:
- these Custody Terms and the Terms and Conditions Governing Accounts, these Custody Terms shall prevail; and/or
- these Custody Terms and any applicable agreement in respect of any Asset kept in custody with us, that applicable agreement shall prevail.
How it works
3. Your Assets will be deposited into a custody account that may be directly or indirectly opened and operated by us (each a “Custody Account”). You authorise us to appoint Agents to perform any aspects of the custody service and, where needed, authorise them to do the same. We will follow the Applicable Laws in doing so.
4. For Assets that you transfer to us for custody, you represent and warrant that they belong to you; are authentic, valid and correct in every respect. You agree to fully indemnify us against any Losses that we may suffer due to or arising out of the foregoing representations and warranties being untrue or incorrect in any respect. We may, in our absolute discretion, refuse to accept any Asset for custody.
5. Your Assets are always subject to your control, unless they were assigned or charged to us by way of security and subject always to Applicable Laws and/or any applicable agreement.
6. We will act only on your Instructions in writing to acquire, hold in custody, dispose of or otherwise deal with your Assets, provided they have not been assigned or charged to us. You acknowledge and agree that we may not act on your Instruction if we are required to comply with any Applicable Law which restricts us from taking any action in respect of your Assets.
7. If your Assets are denominated in a foreign currency, you authorise us to deposit your Assets in a Custody Account with an Agent outside Singapore which is licensed, registered or authorised to act as a custodian in the country or territory where such account is maintained. You should be aware that you may be exposed to additional risk as the Applicable Laws of the foreign jurisdictions may be very different from Singapore law. This means that your Assets do not enjoy the same protection as those held in custody accounts in Singapore. A possible consequence of this is that in the event of a legal dispute in that market, the courts in that market may not recognise your Assets as belonging to you and you may not be able to recover them.
8. You may not be able to withdraw your Assets, or may lose some, or even all your Assets, if we or our Agents become insolvent. Provided that we have acted in good faith and used reasonable care in the selection and continued appointment of any Agent, you agree that we are not responsible for any act, omission, default, or insolvency of such Agent.
9. In order to enable us to provide you with the Custody Service in accordance with these Custody Terms, you authorise us to:
- acquire, hold and register your Assets in our name and keep them in locations we think fit;
- comply with Applicable Laws, including withdrawing and transferring Assets (or entitlements to them) to securities depositaries, clearing or settlement systems, account controllers or other participants in the relevant systems as selected by us for any purposes;
- request payment of, collect and receive interest, dividends, payments or other entitlements in respect of any Asset;
- convert any monies payable in respect of your Assets at the prevailing exchange rate if they are made in a currency different from your Account;
- choose to receive a distribution in cash or in kind, unless you have instructed us in writing of your preferred distribution type;
- where applicable, exchange any Asset in a temporary form or other Assets in definitive form and deliver physical scrip form of such Assets to any depository set up for the purpose of and/or operating scripless trading and to complete and deliver any required document;
- surrender your Assets against receipt of monies payable at maturity or upon redemption at your request to us in writing;
- execute any necessary declaration or certificate of ownership under any Applicable Law; and
- take any other action we think appropriate
10. In providing you with Custody Services, you understand and agree that we are under no obligation to:
- supervise or monitor any of your investments or transactions involving your Assets;
- advise or recommend for any transaction in relation to the sale, purchase or disposal of your Asset unless we agree to;
- assess the suitability of any transaction involving your Assets;
- assist you in claiming any tax benefit(s) or claims for a reduced withholding rate to which you may be entitled to in connection to your Asset (whether under a tax treaty or any other Applicable Law);
- assist you to seek reimbursement of any third parties of any amounts due to any withholding that had been applied at higher rate than that which you are entitled to or which you view to be the applicable rate; or
- provide trustee services and we shall have no trust, fiduciary or other obligations in respect of your Assets pursuant to these Custody Terms, save for those expressly provided for in these Custody Terms or as otherwise agreed in writing.
11. If you receive any income from non-Singapore Assets that is subject to non-resident withholding tax, we will apply the full prevailing prescribed rate.
12. Notwithstanding anything stated herein and without prejudice thereto, in the event that we agree to a request to apply a reduced rate of withholding tax in connection with your assets kept in custody with us, you agree that:
- we may decline at any time in our sole discretion to proceed further with your request;
- you will provide to us all information (in any form) as we may require from time to time for the purpose of processing your request. You further represent and warrant that (i) the information provided by you is complete and accurate; (ii) you shall notify us as soon as practicable when there is a change in your circumstances; (iii) you shall update your tax status periodically in such frequency, required form and within the time period as specified by us from time to time; and (iv) you meet all requirements of the relevant tax treaty(ies) or any other Applicable Law pursuant to which you are seeking the application of a reduced rate of withholding tax;
- you are aware that we shall be entitled to withhold the relevant amount of taxes in accordance with our existing processes and/or as we determine in our discretion to be necessary, and hence any relevant withholding rate(s) applied may be revised from time to time in our discretion;
- at any point in time, should it be determined by us that a revised/higher withholding rate should have been applied, we are entitled to automatically deduct from your account the relevant difference, such that the amounts due to us or which should have been received by us is equal to the full amount had no withholding or deduction been required; and
- in the event that a reduced withholding rate is applied, we are not responsible for crediting to you the difference from, or any backdated amounts that had been previously withheld at, the higher withholding rate.
Our Communication with You
13. We will keep records to ensure that your Assets are held on your behalf and do not belong to us. We will furnish you with periodic statements in respect of your Assets and notify you of any transaction involving your Asset as soon as practicable after each transaction.
14. We will take reasonable steps to forward to you any notice or communication we receive in respect of your Assets. If the notice or communication does not call for any Corporate Action, we shall not be obliged to forward such notice or communication to you.
15. In the event of a credit event, any information or updates that we forward to you will be on a best effort basis, as we may not be privy to any debt restructuring plans and/or other negotiations between the issuer and its creditors (due to the confidential nature of such discussions), the availability and flow of information may be greatly diminished in such circumstances.
16. We will not be liable for any losses arising from any failure to forward a notice or communication correctly or promptly to you, unless there was gross negligence, fraud or wilful default on our part.
Pooling of Assets
17. Your Assets may be deposited together with assets belonging to our other customers, and/or the customers of our Agents in an omnibus custody account. This is known as co-mingling. Co-mingling comes with certain risks which you understand and agree to as below:
- While we will maintain records of your interests in the pooled Assets, your right to such Assets may not be easily identified from documentation such as separate certificates, other documents of ownership or equivalent electronic records;
- If we or our Agent defaults or becomes insolvent, you may not receive your full entitlement. Any shortfall in relation to the value of pooled Assets may be apportioned to you and other customers. Delays in identifying individual investments in such situations may result in an increased risk of loss; and
- You may not receive the identical Assets deposited in custody. We will, however, return to you Assets that are of the same class, denomination quantity and nominal amount (and rank equally) with those originally deposited with or transferred to us.
Corporate Actions and voting rights
18. For Assets that give you rights in relation to a company, we will not be responsible for taking any action in relation to Corporate Actions that we become aware of and we will not exercise any voting rights attached to your Assets unless you instruct us otherwise.
19. We may, on occasions, hold the same class of assets on behalf of one or more customers, and exercise such voting rights attached to the assets in accordance with instructions from majority of the customers. You acknowledge and agree that this may be contrary to the Instructions you have given us.
20. You acknowledge that we do not guarantee, nor are we able to ensure that any corporate action taken by the issuer of any Asset would be in accordance with your Instructions to us.
21. If there is any entitlements or benefits arising from corporate actions affecting your Assets, you agree to accept our calculation, and subsequent allocation. We will be entitled to disregard fractional entitlements and you waive any right and claim to them.
22. For Treasures Customers, you agree to pay the fee for the Custody Service as specified in our Pricing Guide. We may charge a separate custodian fee if your Asset is in physical scrip form.
23. We may deduct your account with us with the full amount of any fee payable by you, or liabilities incurred while providing the Custody Service to you. For this purpose, we are authorised to debit such amount owing from any of your Accounts and/or sell your Assets and collect the proceeds. This means that until payment in full of all liabilities is made, we shall have a right of lien in respect of your Assets.
24. Where necessary, we will effect any currency conversion at the prevailing exchange rate. We shall not be liable for any losses arising from the settlement of such liabilities or the failure to do so.
25. If your Assets are pledged to us, you may not withdraw or sell them without our prior consent, and we are entitled to sell or otherwise deal with your Assets at our sole discretion without any notice or court action in order to discharge your Liabilities. This will take place by such means and at a price we reasonably determine to be the best obtainable, even if this means that you may end up making a loss. We are not liable for any resulting losses you may suffer.
Section 4 – Additional Terms and Conditions Governing Investment Products and Services
These additional terms and conditions (“Additional Terms”) are applicable only if you choose to take up the investment product named in this Section. In the event of any inconsistency between the General Terms and the Additional Terms, the Additional Terms shall prevail in respect of the specific investment product.
Unless the context otherwise requires or the Additional Terms expressly provide otherwise, capitalised terms used shall have the meanings specified in the General Terms.
A. Additional Terms and Conditions Governing Funds
The Terms and Conditions Governing Investments in Funds can be found at our website: https://www.dbs.com.sg/iwov-resources/pdf/governing-investment-in-funds-tnc.pdf
B. Additional Terms and Conditions Governing Structured Deposits
"Structured Deposit" means the investment placed by the Customer with the Bank, the specific terms of which are evidenced by the Structured Deposit Confirmation/Advice and Termsheet;
"Structured Deposit Confirmation/Advice" means a document or other evidence exchanged between the parties confirming the terms and conditions of the Structured Deposit;
“Termsheet” means a document setting out the terms and conditions of the Structured Deposit and issued by the Bank on the relevant date;
"Tenor" means the Structured Deposit period being the period commencing on, and including, the Value Date and ending on, but excluding, the Maturity Date.
Dates to Note:
|Types of Dates||What it Means||Where it is found|
|Trade Date||The date you confirm with us that you want to invest in the Structure Deposit||Structured Deposit Transaction Advice
|Value Date||The date the Structured Deposit starts|
|Observation Date / Time||The date / time where we determine the relevant amounts or rates|
|Observation Period||The period from the time the trade is entered into on Trade Date to and including the Observation Date and Time.|
|Payout Date||The date(s) we make you a payout|
|Maturity Date||The date we pay out the Redemption Amount to you|
Amounts/Rate to Note:
|Types of Dates||What it Means||Where it is found|
|Principal Amount||The investment amount in the currency you place with us||Structured Deposit Transaction Advice
|Interest Amount||The payout amount (if applicable) in respect of the Structured Deposit|
|Redemption Amount||The amount paid on the Maturity Date|
|Interest Rate||Known also as the payout rate applicable to the Structured Deposit|
1.1 If there are any inconsistencies in the terms which apply to the Structured Deposit Transaction Advice, the Terms and Conditions Governing Accounts, the Terms and Conditions for Structured Deposits and the Termsheet, the Termsheet shall take priority.
1.2 Unless we tell you otherwise, we shall be acting as principal in respect of all dealings with you on Structured Deposits.
1.3 All monies due to you will be paid to the account that you determine. If such account is no longer active, we shall decide the account to pay the monies to, and that will be a discharge of our obligations in full.
2 Confirmation and Placement
2.1 After you have agreed and confirmed the terms of offer of the Structured Deposit with us, we will issue and send you a Structured Deposit Transaction Advice, setting out such terms, duly executed on behalf of the Bank. For Structured Deposits offered on a tranche basis, we will only issue and send you the Structured Deposits Transaction Advice if the minimum tranche has been met.
3 Payment of Principal Amount
3.1 The Principal Amount must be received on or before the close of business in Singapore one (1) Business Day after the Value Date. Failure to do so may result in the Bank to not accept your Instruction to enter into the Structured Deposit. Once the Principal Amount has been received for the Structured Deposit, it may not be withdrawn (wholly or partially) nor terminated by you prior to the Maturity Date, except in accordance with Clause 4 below.
3.2 We reserve the right at our discretion, not to accept any funds received (or to accept only part of such funds) as the Principal Amount for the Structured Deposit on or before the Value Date. In such event, we will notify you as soon as practicable and any funds received but not accepted as the Principal Amount will be paid to you.
4 Early Withdrawal
4.1 You may not terminate the Structured Deposit before the Maturity Date without our approval in writing. Our approval may be granted or withheld in our sole and absolute discretion, and on such terms and conditions that we determine.
4.2 If we approve your request to terminate the Structured Deposit prior to its Maturity Date, we shall be entitled to deduct any costs, losses and damages which are or may be incurred by us. This means that you may receive less than the Principal Amount.
4.3 In the event that the Principal Amount or other amounts (if any) are insufficient to indemnify or reimburse us in respect of such costs, losses and damages, we have the right, at any time, to claim from you the amount of the remaining costs, losses and damages. We may choose to exercise our rights of set-off under the Agreement and deduct the amount owing from any of your accounts with us.
5 Interest Amount
5.1 Payout shall accrue on the Principal Amount at the Interest Rate during the Observation Period and shall be calculated as set out in the Structured Deposit Confirmation/Advice and Termsheet.
5.2 The Interest Amount (if any) shall be subject to all applicable withholding taxes and shall be payable in arrears on the Payout Date, or, if such day is not a Business Day, the Business Day immediately following such Payout Date.
6 Payment to Customer on Maturity date
6.1 Payout shall accrue on the Principal Amount at the Interest Rate during the Observation Period and shall be calculated as set out in the Structured Deposit Confirmation/Advice and Termsheet.
6.2 We may, in our sole discretion, terminate the Structured Deposit and/or the Agreement at any time without notice to you if we have reason to suspect that you have violated the Agreement. We reserve the right to investigate any suspected violation of the Agreement.
7 Our Right to Terminate
7.1 We may, in our sole discretion, terminate the Structure Deposit and/or the Agreement at any time without notice to you if we have reason to suspect that you have violated the Agreement. We reserve the right to investigate any suspected violation of the Agreement.
7.2 We shall have the right to terminate the Structured Deposit and/or the Agreement at any time, by giving notice to you, if we determine in good faith that:
- our performance under the Agreement is prevented or materially hindered or delayed due to either any act, law, rule, regulation, judgment, order, directive, decree or material legislative or administrative interference of any Government Authority or otherwise, or the occurrence of civil war, disruption, military action, unrest, political insurrection, riot or any other financial or economic reasons or any other causes or impediments beyond our control;
- it has become impracticable, illegal or impossible (i) to convert through the customary legal channels a Relevant Currency into the other Relevant Currency, or (ii) to deliver through customary legal channels any funds in a Relevant Currency from accounts inside the jurisdiction of that Relevant Currency to accounts outside the jurisdiction of that Relevant Currency or (iii) to deliver the Relevant Currency between accounts inside the jurisdiction of that Relevant Currency or to a party that is a non-resident of the jurisdiction of that Relevant Currency, due to the adoption of, or any change in, any applicable law, rule, regulation, judgment, order, directive or decree of any Government Authority or otherwise;
- the currency exchange rate between the Relevant Currencies has split into dual or multiple currency rates or it has become impractical, illegal or impossible for us to determine a currency exchange rate for the Relevant Currencies or the relevant interest rate or to obtain a firm quote for such rates for payment under the Agreement;
- it has become impracticable, illegal or impossible in any relevant jurisdiction for us to purchase, sell or otherwise deal (or to continue to do so) in a Relevant Currency or enter into any options or futures contracts or swaps in relation to any Relevant Currency in order to perform our obligations under the Agreement or in respect of any relevant hedging arrangements in connection with the Agreement under the restriction or limitation of the existing or future law, rule, regulation, judgment, order, directive or decree of any Government Authority or otherwise; or
- any other event beyond our control has occurred which makes it impracticable, illegal or impossible for us to perform its obligations under the Agreement or to effectively hedge its obligations under the Agreement.
“Government Authority” means any nation, state or government, any province or other political subdivision thereof, any body, agency or ministry, any taxing, monetary, foreign exchange or other authority, court, tribunal or other instrumentality and any other entity exercising, executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
"Relevant Currency" means, any of the currencies specified as such in the Structured Deposit Confirmation/Advice and "Relevant Currencies" means all of them.
7.3 Upon the termination of the Structured Deposit and/or Agreement as per Clause 7.1 and 7.2, we will pay you an amount we determine in good faith to be the fair market value of the Structured Deposit as at the termination, taking into account all information which we deem relevant, including the impracticability, illegality or impossibility, less the cost to us of unwinding any related underlying hedging arrangements (including but not limited to selling or otherwise realising any options, futures contracts in relation to the Structured Deposit or any such other property). You shall not hold the Bank responsible for any loss, expense, damage, liability or other consequence suffered or incurred by reason of the termination of the Structured Deposit.
C. Additional Terms and Conditions Governing Currency-Linked (or Dual Currency) Investments
“Application Amount” means the amount in the base currency which you offer to invest in the CLI.
“CLI” means each currency linked structured product offered by the Bank.
“CLI Account” means an account within your WMA.
“CLI Confirmation” means a confirmation issued by the Bank confirming its acceptance of your investment of the Principal Amount in the CLI and certain terms and conditions in respect of such CLI.
“CLI Documents” means these Additional Terms, read together with the General Terms, CLI Termsheet and CLI Confirmation.
“CLI Maturity Date” means the date of maturity of such CLI as agreed between you and DBS and if such day does not fall on a Business Day, the CLI Maturity Date shall be the first Business Day immediately following such day unless DBS determines otherwise.
“CLI Termsheet” means a document setting out the specific terms and conditions for that CLI.
“Principal Amount” means the whole or such part of the Application Amount placed by you which the Bank agrees to accept for investment in that CLI.
“Value Date” means the date on which the Bank, subject to the terms and conditions of the CLI Documents, accepts the investment of the Principal Amount by you in that CLI.
1.1. In the event of any inconsistency between the provisions of any of the CLI Documents, the inconsistency will be resolved in favour of the document ranking higher in the following order of priority: (a) the CLI Termsheet, (b) these Additional Terms and (c) the General Terms.
2 Investment of CLI
2.1 DBS will be acting as principal in respect of all dealings in the CLI.
2.2 For each CLI that you wish to invest in, you are required to execute and/or agree to the relevant CLI Termsheet and any other document(s) as required by the Bank.
2.3 For payment of purchase of the CLI, you agree that:
- The Application Amount will be transferred from your Settlement Account to your CLI Account immediately upon receipt of your investment Instruction or at any such time as may be determined by us;
- We may, at our absolute discretion earmark the Settlement Account immediately upon receipt of your investment Instruction or at any such time as may be determined by us;
2.4 The Bank may, in its sole discretion, decide not to accept any part of the Application Amount for investment in the CLI without any liability. In such event, the Bank will as soon as practicable after its decision, notify you accordingly.
3. Early Withdrawal / Termination
3.1 You agree that each CLI is intended to be held to maturity and you do not have the right to terminate the CLI (in whole or in part) before the CLI Maturity Date.
3.2 The Bank may enter into one or more hedging transactions or other arrangements in respect of each CLI. If the Bank, in its sole discretion, chooses to consent to your request for termination of the CLI (in whole or in part) prior to the CLI Maturity Date, you shall indemnify the Bank for the costs, losses, expenses and damages (“Costs”) the Bank may incur. The Bank shall be entitled to deduct such Costs from the Principal Amount or other amounts (if any) which are otherwise payable to you. In this regard, you may receive substantially less than the Principal Amount.
3.3 In addition and without prejudice to any other right of early termination which the Bank may have pursuant to the CLI Documents, the Bank shall have the right to terminate that CLI (in whole or in part) by giving you notice if the Bank determines that it shall have become unlawful, impossible or impracticable in whole or in part for the Bank to perform any absolute or contingent obligation under the CLI Documents or in respect of that CLI or to hedge its obligations in respect thereof, as a result of compliance in good faith by the Bank with any Applicable Law.
4. Return or Payout and Redemption on the CLI Maturity Date
4.1 The return or payout and final redemption amount that you will receive from the CLI and the terms of such payment will be set out in the CLI Termsheet and/or CLI Confirmation.
5. Calculation Agent
5.1 Unless otherwise specified in the CLI Documents, the Bank shall act as the calculation agent. All determinations and calculations will be made solely and independently by the calculation agent in good faith, and shall, in the absence of manifest error, be binding and conclusive on the parties. The calculation agent does not assume any other obligation or duty to either party.
D. Additional Terms and Conditions Governing digiPortfolio
The digiPortfolio Terms and Conditions can be found on our website: https://www.dbs.com.sg/personal/digiportfolio-tnc.page
E. Additional Terms and Conditions Governing Stock Trading Services
1.1 These Additional Terms and Conditions Governing Stock Trading Services shall apply to all transactions in stocks, shares and other equity securities listed on an exchange (“securities” or “Stocks” or “Shares”) which you may undertake or intend to undertake with or through us.
1.2 Nothing in this Terms and Conditions obliges us to enter into any transactions with you, and we may refuse to enter into any such transaction or otherwise act on any order without having to give a reason for doing so.
1.3 You acknowledge that acceptance by us of your Instruction in relation to any Shares Transaction will not necessarily result in its execution. Your Instruction will only be executed if (a) market conditions permit; (b) such execution is in accordance with all Applicable Laws; and (c) you do not exceed any position or transaction/trading limit imposed by us. Such limit may include minimum sizes for transactions. If we are unable to execute any Instruction in such circumstances, such Instruction shall be deemed to have expired. We will inform you of such expiry as soon as reasonably practicable.
1.4 All orders placed are valid only for the day unless otherwise agreed between you and us. You have to place the order again the next working day if the orders have not been executed.
1.5 You agree that we have the right to aggregate your orders (including any requests for application for shares in an initial public offering or private placement) with the orders of our other customers. The allotment or distribution of any equities, monies or other property pursuant to such aggregation of orders shall, subject to Applicable Laws, be at our sole discretion. You accept that such allotment or distribution may result in inequities on some occasions.
1.6 Purchase of Shares: You understand that if you do not pay for shares which you purchase by the due date of the purchase transaction, we have the right for force sell any or all of such Shares. We may, but need not exercise this right on any day after the day on which the right to force sell first arose. We shall not be liable to you for any Loss you suffer as a result of any fall in the market price of the equities between the time the right to force sell arises and the time we actually sell the securities.
1.7 Sale of Shares: Before giving us Instructions for the sale of any Shares, you must ensure that the relevant Shares are available for delivery on the settlement date of the transaction by depositing or delivering such Shares with us or our Nominees. This means that we do not allow short selling. If delivery of securities is not made on the settlement date, we shall, subject to Applicable Laws, have the right to buy-in immediately and bill you for the difference. We shall not be liable to you for any Loss you suffer as a result of any fall in the market price of the equities between the time the right to buy in arises and the time we actually buy the shares.
1.8 Unless otherwise specified, all Shares Transactions undertaken on your Instructions shall be executed in our name and/or in the name of our Nominee. All such Shares purchased by you shall be held by us or our Nominee, as custodian for you, and shall be subject to the Custody Terms available in Section 3.
1.9 You may instruct us to transfer your Singapore-listed Shares to your Central Depository (Pte) Limited (“CDP”). You agree to pay any costs or charges in connection with such charges that is prescribed by us from time to time. You should also be aware that such transfer may incur charges, fees or expenses payable to CDP.
1.10 You agree that we may impose such conditions and/or restrictions on the availability of any particular Share which you may undertake or purport to undertake any Shares transaction with or through us as we may in our absolute discretion consider appropriate.
1.11 Should you encounter system disruption or failure when you trade through or on an electronic trading system, your transaction may not be executed according to your Instructions or may not be executed at all. We shall not be liable for any Losses or potential Losses which you may suffer.
Initial Public Offerings and Private Placements of Shares
1.12 You must provide your Instruction in the form or manner that we prescribe before we will accept it and subscribe for Shares on your behalf pursuant to an initial public offering or private placement. Each Instruction shall be irrevocable, unless we agree otherwise.
1.13 By instructing us to subscribe for Shares in an initial public offering or a private placement, you represent and warrant that:
- you confirm you have obtained a copy of the investor requirements, conditions of subscription, selling and/or other restrictions specified in the prospectus, information memorandum, application forms or other offering documents (collectively the “Offering Documents”) and have read, understood and fully accept all the terms and conditions stated therein, including that you ensure you fulfil and comply with the Offering Documents;
- you shall not make any other application for subscription of such securities whether directly or through any agent or nominee;
- where we are required to make certain representations and/or warranties on your behalf to other third parties in connection with such subscription of Shares, you shall ensure that each such representation and/or warranty shall be true, correct and not misleading in any way;
- you shall ensure that you adhere to all Applicable Laws (including any reporting and disclosure requirement and shareholding restriction) and you agree that we need not enquire into or verify any action taken by you in connection therewith;
- your entry into each such Shares transaction does not contravene any Applicable Law, including Applicable Laws relating to insider dealing, market manipulation and/or any other trading offences.
1.14 Acceptance of Instructions for any trade is subject to the respective stock exchanges being open. If a settlement date falls on a Singapore holiday or any day which the relevant stock exchange is close, we will not be able to accept such Instructions. Any amount credited to your account during such days shall be made on the next Business Day on which the relevant stock exchange is open.
2 China Connect
2.1 By giving us an Instruction to trade in China Connect Shares, you represent and undertake on a continuing basis that:
- You are not a Mainland China Resident;
- If you are Mainland China Resident, you are using funds that you own lawfully and are located outside Mainland China;
- You are aware of, and shall comply with all laws and rules governing the use of China Connect;
- You have assessed the risks relating to China Connect in Section 2 and are willing to undertake it;
- You do not hold more than 5% of the Shares of any Mainland China-incorporated company which is listed and traded on any stock exchange in Mainland China;
- You do not know of any fact that might impair the validity of such Connect Shares and you have full authority to receive, deal with and give instructions or declarations in respect of the same;
- If you place an order to sell any China Connect Shares, there is no restriction on such Shares, including but not limited to no adverse claims, or restrictions on the transfer;
Trading of ChiNext Shares
2.2 Subject to Clause 2.3 below, we will not accept any orders to buy or sell any securities listed and traded on the ChiNext Board of the SZSE which may be traded by Hong Kong and international investors under China Connect (“ChiNext Shares”).
2.3 We may at our sole discretion accept any sale orders from you to sell ChiNext Shares through the China Connect service only if you have received such ChiNext Shares from any distribution of rights (including the right to subscribe for rights issues or open offers) or entitlements, conversion, takeover, other corporate actions or any other special circumstance arising from China Connect Shares that you hold. Such ChiNext Shares must be accepted or designated by the SEHK as China Connect Shares or Special China Connect Shares.
Pre-Trade Checking Requirements
2.4 If you place a sell order for China Connect Securities, you agree that this is subject to the Pre-Trade Checking requirement mandated by China Connect laws where we have to ensure that you have sufficient China Connect Shares in your account.
2.5 We have the absolute discretion to determine what is considered as sufficient China Connect Shares in your account in relation to your sell order. In the event that you do not have sufficient China Connect shares in your account, we may reject your sell order or perform any other act which we consider necessary to comply with the Pre-Trade Checking requirement and/or relevant laws and rules.
2.6 If you place a buy order, we reserve the right to reject the buy order if we determine that you do not have sufficient funds to settle the payment obligation in respect of such order on the settlement day.
2.7 You shall bear any risk, loss or cost resulting from non-compliance or potential non-compliance with Pre-Trade Checking and/or the Applicable Laws. You shall reimburse us for any costs, losses or expenses which we incur as a result of your failure to deliver in respect of your sell orders on any terms and price and at such time that we determine.
Settlement and Currency Conversion
2.8 All trades are effected and settled in Renminbi. If we do not receive sufficient Reniminbi before the settlement of any purchase of China Connect Shares, settlement may be delayed or fail and you may not acquire the relevant China Connect Shares.
2.9 In the event that we hold any funds denominated in other currencies other than Renminbi, you authorise us to convert the funds into Renminbi at our prevailing exchange rate for the purpose of settlement if we do not receive sufficient Renminbi for settlement of funds.
2.10 Pursuant to Clause 2.9 where we deem it necessary to make such conversion, we will carry it out in a commercially reasonable manner without prior notice to you. Any risk, loss or cost resulting from any conversion of one currency into another currency shall be borne by you. For avoidance of doubt, you understand and acknowledge that we do not have any obligation to make any such conversion.
2.11 If there is insufficient liquidity in Renminbi to settle any buy orders, we may reject such buy orders.
Forced Sale, Transfer and Disgorgement
2.12 If we receive notice from a China Connect Authority requiring us to sell and liquidate a specified number of China Connect Shares (a “Forced-sale Notice”), we shall be entitled to issue you a corresponding notice requesting you to sell and liquidate any number of such China Connect Shares you hold in your account with us within the time period specified by the relevant China Connect Authority (a “Client Forced-sale Notice”).
2.13 If you fail to comply with a Client Forced-sale Notice, you authorise us to sell or arrange for the sale of such China Connect Shares on your behalf at such price and terms that we determine in our absolute discretion, to the extent necessary to comply with all Applicable Laws.
2.14 If your China Connect Shares are the subject of a Client Forced-sale Notice and have been transferred from a clearing participant (the “Original CP”) who settled the relevant buy order to a recipient Agent, you authorise us to provide instructions to the recipient Agent on your behalf to return the relevant China Connect Shares to the Original CP for sale and liquidation. You also undertake to inform the recipient Agent of such authorisation, and if required, to instruct the recipient Agent to act accordingly.
2.15 If we receive notice from any China Connect Authority that requires you to disgorge any profits, you authorise us to sell or arrange for the sale of any quantity of China Connect Shares that you own.
2.16 You also authorise us to sell, transfer or carry out any other action in relation to China Connect Securities owned by you if we are instructed to do so by any China Connect Authority or if we otherwise determine in our absolute discretion that it is necessary or desirable to do so in order to comply with any Applicable Laws.
2.17 We shall have no liability for any losses or risks which may result to you directly or indirectly from any actions taken by us under this Clause 2.12 to 2.17.
2.18 You will provide to us all information (including translation into Chinese if required) which we request, if such information is requested by an exchange, regulatory authority or an organisation (whether within or outside Hong Kong) with which HKEx or SEHK has entered into an information sharing arrangement or agreement.
2.19 You also acknowledge that we may disclose your data to the China Connect Authorities at their request so as to facilitate the performance of their regulatory, surveillance, enforcement and other functions.
2.20 You will execute any further documents and provide any materials and/or information as we may reasonably request so that we can perform our duties and obligations. Failure to do so may result in us suspending your use of the China Connect Service.
F. Additional Terms and Conditions Governing Bonds (transacted over-the-counter)
1.1 Unless we tell you otherwise, we shall be acting as principal in respect of all over-the-counter dealings with you on bonds.
1.2 Your Instruction to apply for bonds will be deemed to be irrevocable and you agree that no requests for cancellations, amendments or refunds will be entertained.
1.3 You authorize us to purchase and/or sell or otherwise deal with bonds through such brokers, dealers or agents (including our related companies and affiliates) as we may select or through ourselves as principal for our own account, as the case may be.
2 Additional Terms for Initial Public Offering of Bonds
2.1 You agree to the following:
- To the extent applicable, you acknowledge that no prospectus may be available at the time of your application or that only an interim prospectus is available, as the case may be.
- You irrevocably agree to accept the amount of bonds applied for or any lesser amount (including zero amount) that may ultimately be allotted by the Bank.
- You will not make any claim and/or take any action against DBS for any loss or damage (whether direct, indirect or consequential) in this connection.
- If for any reason you refuse to accept the allotted bonds, you agree to compensate DBS for all Losses which we may suffer or incur as a result of such refusal. DBS is authorised to debit any of your accounts for the Losses.
- We may, at our sole discretion, aggregate your purchase order with such other purchase orders received by us and place an aggregated purchase order for the bonds.
G. Additional Terms and Conditions Governing Structured Notes
1 Definitions for this Part
“Closing Date” means the date of the closing of the offer of the Notes.
“Gold” means investments in fine gold of such specifications acceptable in the London Bullion Market Association (“LBMA”), unless otherwise agreed in writing by us.
“Issue Date” means the date of the issue of the Notes by the issuer.
“Note” means any Structured Note issued and/or distributed by DBS. In this Agreement, a Note may refer to an Equity Linked Note (also known as Equity Linked Investment in some documents), Reverse Equity Linked Note, Gold Linked Note, Fund Linked Note, Currency Linked Note, DBS CIO Barbell Strategy Index Linked Note (“Barbell Notes”) or any other form of Structured Note that may be issued and/or distributed by DBS.
“Notes Account” means an account within your WMA.
“Purchase Order” means the amount or quantity of Notes which you instruct DBS, by way of an application form or other channel acceptable to DBS, to subscribe for or purchase on your behalf.
“Structured Note” means a structured product linked or referenced to Underlying Asset(s). It aims to provide an enhanced yield, and the return depends on the specific structures selected and the performance of the Underlying Asset(s). It may be issued with or without a fixed tenor.
“Term-sheet” means a document, which shall have been completed and/or agreed to by you, setting out the terms and conditions for that Note.
“Underlying Asset” means Equity, Gold, Fund, Currency, Index, interest rate or such other financial instrument or a combination of any two or more financial instruments determined by DBS or the Notes issuer.
2.1 You authorize DBS to:
- purchase and/or sell or otherwise deal with Notes through such brokers, dealers or agents (including our related companies and affiliates) as we may select or through ourselves as principal for our own account, including but without limitation to execute any necessary legal documents, which will have the same effect as though you had executed them.
- at our sole discretion, aggregate your purchase order with such other purchase orders received by us and place an aggregated purchase order for the Notes.
3 Other Terms
3.1 Unless we tell you otherwise, we shall be acting as principal in respect of all dealings in the Notes.
3.2 In the event of any inconsistency between the provisions of any of the Notes documents, the inconsistency will be resolved in favour of the document ranking higher in the following order of priority: the (a) offering documents, including the Term-sheet, (b) Additional Terms in this Part and (c) General Terms.
3.3 We may enter into various Notes and derivative transactions in order to hedge our obligations with respect to the Notes and you agree that you will be responsible for any Losses suffered by us as a result of your failure to complete the purchase of the Notes on Payment Date;
3.4 When we undertake a Note transaction for you, we (including our Affiliates) may:
- be dealing as principal for our own account by selling the Notes to you or buying the Notes from you and, in doing so, we may be doing so at a price that is above or below the market price (assuming such a price is available), as the case may be;
- be matching your transaction with that of another customer of ours by acting on behalf of that other customer as well as on your behalf or otherwise;
- be entering into arrangements with brokers or other persons under which we may receive a share of any commission, brokerage or other fees charged by such broker or other person or other benefit. You agree that we may retain any fees, discounts, profits, commissions or rebates or other benefits arising in connection with any such transactions;
- be sponsoring or underwriting a new issue of the Notes to be bought or sold under that transaction;
- be giving advice and providing other services to another person about or concerning the Notes to be bought or sold under that transaction; and/or
- have any other interest in or a conflict of duty in relation to the transaction concerned;
3.5 We may issue one global Note for one or more customers. As such, your interest in the Note may not be identifiable by separate certificates, documents or electronic records but we shall maintain records of your interest in the global Notes.
4 Investment Restrictions
4.1 You acknowledge and understand that:-
- unless we tell otherwise, the offer document (as the case may be) in relation to the Notes has not been registered with or reviewed by any regulatory authority in the jurisdiction in which you have made or are making your application and/or offer to subscribe to or purchase the Notes;
- the Notes have not been authorized, recognized or approved for offer, sale or purchase to the general or retail public;
- this Agreement and all other documents relating to the Notes do not constitute an offer to sell or solicitation of any offer to buy or subscribe for any securities in any jurisdiction in which such distribution is prohibited by law or regulation.
5 Cancellation, Buyback and Redemption of Notes
Cancellation of Notes
5.1 Any Instruction for cancellation, where allowed as stated in the Term-sheet, must be submitted to and acknowledged by DBS before the Closing Date. Partial cancellations will not be permitted.
Redemption of Notes by Issuer
5.2 If at any time, for any reason whatsoever, the issuer gives notice to DBS to redeem the Notes, DBS shall redeem the Notes and credit the redemption proceeds to you.
Buyback of Notes Before Maturity
5.3 Where the Notes are issued with a maturity date, they are meant to be held to maturity. The issuer may, but is not obliged to, purchase your interest in the Notes prior to the maturity date.
5.4 Any request to DBS for issuer to buyback the Notes at any time after the Closing Date will be granted or withheld at our and/or the issuer’s sole and absolute discretion and on such terms and conditions as we and/or the issuer may determine. We do not guarantee a market for the Notes.
5.5 Where buyback is granted, the purchase price for the buyback of the Notes shall be determined by DBS, the issuer or its agent in its absolute discretion and the buyback amount that you will receive may be substantially less than your original investment amount.
Redemption Terms of Notes without a maturity date (for example Barbell Notes)
5.6 You may redeem the Notes on any Business Day by submitting a completed application form or in such form or Instruction acceptable to DBS. Application forms received by DBS after 6 p.m. on any Business Day will be processed the next Business Day.
5.7 Redemption of the Notes are subject to a minimum redemption amount imposed by DBS. For partial redemption, you must ensure that the remaining Notes amount in your Notes Account meets the minimum investment amount.
5.8 We will endeavor to execute your redemption Instruction within a reasonable period of time. However, you acknowledge that due to various constraints including, without limitation, any requirement under Applicable Laws, we may not always be able to execute your redemption Instruction at any specific time or on the same Business Day, and that date of execution is subject to the frequency of valuation as specified in the Term-sheet or by us.
5.9 Redemption proceeds are calculated based on the formula set out in the Term-sheet. You agree to bear all charges and expenses incurred in connection with the redemption of the Notes.
6 Additional Terms specific to Gold-Linked Notes
6.1 You agree to hold Gold from the exercise of your Notes in a DBS Gold Account established in your name, which will also be subject to the Terms and Conditions Governing Gold Account.
7 Additional Terms specific to Equity Linked Notes
7.1 You agree to hold equity from the exercise of your Notes, which will also be subject to the Terms and Conditions Governing Stock Trading Services.
8 Additional Terms specific to Reverse Equity Linked Notes
8.1 For purchase of the Notes, you agree that:
- The relevant equity in your WMA may be debited from your WMA immediately upon receipt of your Instruction or at any such time as may be determined by us.
- We may, at our absolute discretion, earmark the relevant equity in your WMA prior to the Issue Date for the Notes;
- If you do not have sufficient relevant equity holdings in your WMA, we reserve the right at our sole discretion, not to accept your Instruction to enter into the transaction, in which case, your placement will be deemed void and the Notes will not be effected.
H. Additional Terms and Conditions Governing Investments in Gold Account
1 Definitions for this Part
“Gold Account” means an account within your WMA.
“Gold Transaction” means any transaction in relation to Gold that the Bank may, at your request, enter into with you, including without limitation to any purchase or sale of Gold.
“Gold” means investments in fine gold of such specifications acceptable in the London Bullion Market Association (“LBMA”), unless otherwise agreed in writing by us.
“Ounce” means one fine troy ounce (to two decimal places).
“Trade Date” means, the date that we enter into any Gold Transaction with you.
“Transaction Price” means the price as determined by us in our absolute discretion for the sale or purchase of Gold in accordance with this Part.
2 Unless we tell you otherwise, we act as principal in all Gold Transactions, including but not limited to the sale and purchase of the Gold in your Gold Account(s).
3 The Bank may (but shall not be obliged to) accept your request to purchase or sell a specified quantity of Gold at the Transaction Price on the specified Trade Date.
4 All Gold Transactions shall be effected in Ounce(s) of Gold, subject to such minimum amount as the Bank may determine from time to time. The Bank shall quote you the Transaction Price as soon as reasonably practicable after we received your Instructions for any Transaction.
5 Upon the successful execution of any request to perform a Gold Transaction, the Bank will credit or debit your Gold Account with the quantity of Gold pursuant to each such Gold Transaction as soon as reasonably practicable after the Trade Date. The value of Gold reflected in your Gold Account shall be the indicative of the marked-to-market value in your Gold Account as at the applicable value date.
6 Any Gold in your Gold Account may only be dealt with through the Bank. You shall have no interest, proprietary or otherwise, in any Gold held by us.
7 Notwithstanding any terms stated herein, the Bank shall not be under any duty and/or liability in any circumstances to hold or deliver any Gold in physical form and you shall have no right to demand and/or request for physical delivery of any Gold at any time.
8 There shall be no yield or interest payable for all or any Gold in your Gold Account(s).
9 Upon closure or termination of your Gold Account(s), the Bank may (but shall not be obliged to) sell such quantity of Gold in your Gold Account at the Transaction Price and pay to you such net amount (after deduction of any expenses incurred in connection therewith and/or any fee or charge payable by you under these Gold Account Terms) based in such currency using the prevailing exchange rate as at a date to be determined by us in our absolute discretion. The prevailing Transaction Price of such quantity of Gold may be substantially less than the original amount you had invested and all losses in connection therewith shall be borne by you.
10 All determinations and calculations required for any Gold Transaction(s) based on any prevailing exchange rate will be made by the Bank in good faith and in a commercially reasonable manner. In the absence of manifest error or fraud on the Bank’s part, all determinations and calculations will be conclusive and binding on you.
11 If, in the Bank’s opinion, events having a significant impact on the price and/or trading of Gold, including but not limited, to market disruption and other analogous events, the Bank reserves the right to make any adjustment(s) to the Account. The Bank will, as soon as practicable, notify you of such adjustment(s) which shall be binding on you provided that the adjustment(s) are made in good faith.