Legal Information

Terms and conditions of business

ALL BUSINESS ACCEPTED BY TREND ANALYSIS LIMITED ("THE COMPANY") IS SUBJECT TO THE FOLLOWING TERMS WHICH SHALL CONSTITUTE THE WHOLE OF THE AGREEMENT BETWEEN THE COMPANY AND YOU THE CLIENT TO THE EXCLUSION OF ALL OTHER AGREEMENTS (WHETHER ORAL OR WRITTEN) OR DOCUMENTS PASSING BETWEEN THE PARTIES PRIOR TO THE DATE HEREOF. THE SERVICES TO BE PROVIDED BY US HEREUNDER SHALL BE DEEMED TO BE DONE ONLY ON SUCH TERMS AND NO VARIATION OF THESE TERMS SHALL BE VALID UNLESS IN WRITING AND DULY SIGNED BY US.

THE SERVICE

1. The Company shall provide to the Client during the term of this Agreement an advisory service, ("the Service"). It should be noted that any "stop loss" orders recommended assume that there are no trading restrictions in existence on the relevant cash or futures markets.

2. The Company shall in the provision of the Service act with the utmost good faith and shall use all reasonable care and diligence but the Company shall not be responsible for any loss or damage whatsoever suffered or incurred by the Client or any other person as a result of any advice given by or on behalf of the Company or any delay or failure to give advice or by reason of the Client or any such person acting or refraining from action as a result of any such advice or delay or failure to give advice, including without prejudice to the generality of the foregoing any consequential loss or damage.

3. In the provision of the Service the Company may without prior request from the Client provide relevant information to the Client whether by telex, verbally or such other means and at such times as the Company may from time to time in its absolute discretion determine.

4. The Company and its employees/directors/agents shall devote such time and attention to the affairs of the Client and shall provided such advice as the Company reasonably considers necessary for the proper provision of the Service provided always that neither the Company nor any of its employees/directors/agents shall be obliged to carry out any of its/their obligations thereunder outside normal business hours (being for the purposes of this Agreement Monday to Friday 9:30 am to 5:30 pm).

5. This Agreement shall be assignable by the Company but not by the Client without the Company’s written consent. This Agreement shall be binding on the Client’s successors and assigns. However, the service provided by the Company is for the exclusive use of the Client being the specific (person) office or branch of the Client and such advice as may be given by the Company shall not be transmitted by or on behalf of the Client in any manner whatsoever to any other (person) office or branch within the Clients organisation or any third party.

6. The Company does not hold itself nor any of its employees/directors/agents out as a specialist tax advisor. The Client where appropriate shall seek his/her/its own tax advice from Accountants, Solicitors or other professional advisors.

7. The Company accepts no liability whether contractual or otherwise for errors and omissions in any information or advice sent to the Client by telex or any other means nor for any delay or failure in providing any such information by reason of machine malfunction or any other reason beyond the Company’s control.

8. In consideration of the provision by the Company of the Service the Client shall pay to the Company the fee set out above which shall be payable in full (without deduction (whether in respect of set off counterclaim duty taxes charges expenses or otherwise howsoever)). The fees quoted above are exclusive of Value Added Tax which shall (if applicable) be paid in addition by the Client.

9. The Company shall be entitled to terminate this Agreement forthwith if any of the following events shall occur: (I) the Client shall fail to observe or perform any of his obligations hereunder; or (ii) the Client shall cease to trade or enter into liquidation whether compulsory or voluntarily otherwise than for the purpose of amalgamation or reconstruction of compound with its creditors or have a receiver appointed of all or any part of its assets or take or suffer any similar action in consequence of debt or being an individual become bankrupt or insolvent or enter into any arrangement with his creditors or take or suffer any similar action in consequence of debt; or (iii) anything analogous to any of the events outlined at sub-paragraph (ii) above occurs under laws of any applicable jurisdiction to the client. In the event of termination of this Agreement for whatever reason the Client shall not be entitled to make any claim for refund of all or part of the fees paid to the Company hereunder.

10. In respect of any obligation of the Client hereunder to make payment to the Company time shall be of the essence.

11. Words importing the plural in the Agreement shall include the singular and vice versa. Where the Client is a firm or otherwise consists of more than one person the liability of the Client hereunder shall be the joint and several liability of the partners of the firm or of such persons constituting the Client and the events outlined in paragraph 9 above shall be deemed to have occurred if any such event occurs in respect of any such persons. Notwithstanding the death, bankruptcy or incapacity of any such partner or person and without prejudice to the Company’s rights against any such partner or person the obligations of the other persons constituting the Client and the rights of the Company shall continue in full force and effect.

12. This Agreement shall be governed and construed in accordance with the Laws of England and the Client hereby irrevocably submits to the jurisdiction of the English Courts. Risk Disclosure Statements General Risk Disclosure Statement This statement is made pursuant to rule 5.45.1 of the rules of the FSA

The risk of loss in investing in commodity, financial or other futures, options or contracts for differences can be substantial. You should carefully consider whether such investments are suitable for you in light of your circumstances and financial resources. You should be aware of the following points:-

1. If the market moves against your position, you may, in a relatively short time, sustain a total loss of the funds placed by way of margin or deposit with your broker. Alternatively, you may be called upon to deposit substantial additional margin, at short notice, to maintain your position. If you do not provide such additional funds within the time required, your position may be liquidated at a loss and you will be liable for any resulting deficit.

2. If you deposit collateral as security for calls made upon you by your broker, it will not receive the same protection as if it were a cash deposit held on trust in a segregated client bank account and, once dealings on your behalf are undertaken, that collateral will cease to be your property and may be passed on to an exchange, clearing house or other brokers. Even if your dealings should ultimately prove profitable, you may have to accept payment in cash and not get back the actual assets which you have deposited.

3. Under certain market conditions it may be difficult or impossible to liquidate a position. This may occur, for example, where trading is suspended or restricted at times of rapid price movement.

4. Where permitted, placing a stop-loss order will not necessarily limit your losses to the intended amounts, for market conditions may make it impossible to execute such orders at the stipulated price.

5. A spread or straddle position may be as risky as a simple long or short position and can be more complex.

6. Markets in futures, options and contracts for differences can be highly volatile and investment in them carries a substantial risk of loss. The high degree of "gearing" or "leverage" which is often obtainable in trading these contracts stems from the payment of what is comparatively modest deposit or margin when compared with the overall contract value. As a result, a relatively small market movement can, in addition to achieving substantial gains, where the market moves in your favour, result in substantial loss which may exceed your original investment where there is an equally small movement against you.

7. If you take (buy) an option, your risk in most cases will be less than trading in futures since you should not lose more than the premium you paid plus any commission or other transaction charges.

If you grant (sell) an option, your risk of loss may be as great as your exposure in trading futures, since you carry the risk of unlimited potential loss which, following a relatively small adverse market movement, can exceed the premium payment received by you for granting (selling) the option. Moreover, you have no control over when you might be required to exercise the option. Only experienced traders with substantial capital should contemplate granting options.

There are many different types of options and you should discuss with your broker, your investment requirements and the risks involved in entering such contracts, before committing yourself.

8. Unless you have effectively agreed otherwise in circumstances where this is permitted under the rules of the FSA, when your broker deals for you, you should do so only in contracts of the types dealt with on one of the recognised or designated exchanges. If you instruct your broker on foreign markets, he will probably instruct a broker in the country concerned. Normally that broker will not be subject to the rules or regulations of the FSA and the exchange on which he effects the transaction may not be subject to as strict regulations as a recognised investment exchange in the United Kingdom. Hence the degree of protection afforded to you may be less than if you restrict your transactions to the United Kingdom markets. You should ensure that your broker explains the protections which will operated and ascertain whether he accepts liability of the foreign broker defaults.

9. Prior to the commencement of trading, you should require from your broker written confirmation of all commission and other transaction charges for which you will be liable. If the charges are not expressed in specific money terms (but, for example, as a percentage of contract value), you should obtain a clear written explanation, including appropriate examples, to establish what such charges are likely to mean to you in specific money terms. You should realise that when commission is charged as a percentage it would normally be as a percentage of the total contract value and not simply a percentage of your deposit.

10. Brokers may also be dealers trading for their own account in the same markets as you, in which case their own account involvement could be contrary to your interest. Your broker is required to inform you in advance if he deals on his own behalf in relevant markets. The guarantee of performance by the exchanges’ clearing house applies only to their contracts with members. They do not guarantee performance of your broker’s contracts with you.

11. Your broker’s insolvency or that of any of other brokers involved in your contracts may lead to your positions being closed out without your consent.

12. You have agreed that your money held by your broker need not be segregated in a client bank account and you will lack that protection should your broker become insolvent.

This brief statement cannot disclose all risks of investments in futures, options and contracts differences. They are not suitable for may members of the public and you should carefully study such investments before you commit funds to them. They may also have tax consequences and on this you should consult your lawyer, accountant or tax advisor. Risk Disclosure Statement (off-exchange margined transactions) This statement is made pursuant to rule 5.45.1 of the Rules of the FSA because you have authorised your broker to deal with or for you in futures, options or contracts for differences which are not undertaken under the rules of a recognised or designated investment exchange and in contracts traded thereon. Its purpose is to draw your attention to the following facts:-

1. In general it is only if you are a business, professional or experienced investor within the meaning of the FSA’s rules and have agreed to be treated as such that your broker will be entitled to undertake such dealings with or for you. There are only three other circumstances in which it is permissible, subject to your agreement:-

(a) if the dealings are undertaken under a limited liability contract and your broker has required you to deposit with him a sum in cash equivalent to the amount of your limited liability prior to the entry into the transactions;

(b) if your broker carries on investment business only as an "execution-only dealer", acts only on your unsolicited instructions and offers no advice or recommendations of any kind: or

(c) your broker is managing your investment portfolio under an agreement which provides that such transactions may be entered into but only with a view to protecting against possible adverse fluctuations in the value of other investments in the portfolio. Unless you are a business, professional or experienced investor or one or more of circumstances (a), (b) and (c) apply your broker will not be entitled to undertake such transactions with or for you.

2. Such transactions may involve you in a substantially greater risks than you might incur by investing in futures, options or contracts for differences under the rules of a recognised or designated investment exchange and in contracts of a type trade thereon.

3. There is no regulated market in such contracts and the bid and offer prices will be established solely by dealers in these contracts. Hence, you may not be able to sell what you have bought or buy what you have sold or to ascertain whether you are doing so at a fair price.

4. Before entering into any such transactions you should obtain from your broker a written explanation as to how dealing is to be conducted, the nature of the contracts offered, the facilities which will be made available to you and the applicable procedures for entering into and liquidating transactions, the method of calculating prices and other relevant material. You should satisfy yourself that dealing is conducted throughout in strict conformity with that written explanation and report to the FSA if you have reason to believe it is not.

5. If you deal in contracts which are traded solely by one dealer you will have no alternative than to liquidate your position with the same dealer and to accept the price he offers. You should ensure that his price will be based on objective criteria and that your broker undertakes that deals will be done at that price.

6. You are also reminded that if you have agreed that your money held by your broker need not be segregated in a client bank account you will lack that protection should your broker become insolvent.

Trend Analysis Ltd is regulated by the Financial Services Authority (FSA).