(Not applicable to Islamic Market.)
1. This statement is provided to you for your attention and evaluation of investment in Foreign Securities.
2. “Securities” means debentures, stocks, bonds issued or proposed to be issued by any government; shares in or debentures of a body corporate or an unincorporated body; units in a unit trust scheme or prescribed investments and any right or option or interest in respect thereof.
3. “Foreign Securities” refer to Securities listed in all the relevant Recognised Stock Exchanges as defined by the Rules of Bursa Malaysia Securities Berhad (“BMSB”).
4. This statement is provided to inform you that the risk of loss in trading in Foreign Securities can be substantial. You should therefore assess if trading in Foreign Securities is suitable for you in light of your financial position, risk tolerance, and investment experience. In deciding whether to trade in Foreign Securities, you should be aware of the following risk factors:
- Price Fluctuation
The prices of Foreign Securities fluctuate, sometimes dramatically. The price of a security may move up or down, falling against your interest and under some circumstances even becoming valueless. It is as likely that losses will be incurred, rather than profit made, as a result of buying and selling Foreign Securities.
- Currency Risk
Where investments involve exposure to foreign currencies, changes in rates of exchange may cause the value of the investments to fluctuate up or down.
- Foreign Exchange Administration
Transactions in Foreign Securities on markets in other jurisdictions may be subject to Bank Negara Malaysia’s Foreign Exchange Administration policies pertaining to investment in foreign currency assets.
- Impact of Commission, Fees, and Other Charges
You may have to pay additional costs such as fees and broker’s commissions for transactions in Foreign Securities. In some jurisdictions, you may also have to pay a premium to trade in certain Foreign Securities. Therefore, before you begin to trade, you shall obtain a clear explanation of all commissions, fees, and other charges for which you shall be liable. These charges shall affect your net profit (if any) or increase your loss.
- Tax Implications
There may be tax implications of investing in Foreign Securities. Your 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 Malaysia, or in both countries
- Suspension or Restriction of Trading
Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any security because of price limits or trading halts) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.
- Statutory and Political Risk
Trading in Foreign Securities is subject to the laws and regulations of the jurisdiction it is listed in and is also influenced by the political, economic, and social developments in the foreign jurisdictions, which may offer different or diminished investor protection and/or standards of information disclosure (e.g. accounting, auditing, financial reporting).
- Recovery Risk
Transactions on other Recognised Stock Exchanges are generally affected by the Malaysian 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 in foreign countries.
5. You agree that you will abide by Moomoo Securities Malaysia Sdn. Bhd. (Formerly known as Futu Malaysia Sdn. Bhd.) policies, all applicable rules and regulations including but not limited to the relevant constitution, laws, rules, regulations, by-laws, customs and usages of all the relevant Recognised Stock Exchanges and/or Rules of BMSB as amended from time to time governing the transactions and settlement in Foreign Securities, appointment of foreign broker, appointment of Custodian including but not limited to holding of Foreign Securities outside Malaysia.
6. This statement cannot disclose all the risks and there may be other significant aspects of trading in Foreign Securities that may not have been disclosed herein. you agree to undertake such transactions only if you carefully consider whether trading in Foreign Securities is appropriate in light of your financial position, risk tolerance, investment experiences, and other relevant circumstances. If you are in doubt in relation to any aspect of this statement or the terms of Foreign Securities, you shall seek independent professional advice before investing in Foreign Securities. You shall assume full responsibility for all the purchases and sales of Foreign Securities in your trading account.