Financial Markets Conduct Regulations 2014

12 Key risks affecting this investment

(1)

The KIS must include a statement in the following form:

Investments in shares are risky. You should consider if the degree of uncertainty about [name of issuing group]’s future performance and returns is suitable for you. The price of these [name of financial products] should reflect the potential returns and the particular risks of these [name of financial products]. [Name of issuer] considers that the most significant risk factors that could affect the value of the [name of financial products] are: [brief summary of the circumstances that must be disclosed under clause 42 (risks) that the issuer considers most significantly increase the risk to the issuing group’s financial position, financial performance, or stated plans].”

(2)

In the case of co-operative shares, the statement in subclause (1) may instead be in the following form:

[Name of issuer] considers that the most significant risk factors that could affect the returns received from holding these [name of financial products] are: [brief summary of the most significant risk factors that the issuer considers may affect the returns].”

(3)

The brief summary under subclause (1) or (2) must include particulars that make it clear why each circumstance is of particular significance in relation to the particular issuer or the particular equity securities (as compared to other issuers or equity securities).

(4)

The KIS must include a statement in the following form after the statement in subclause (1) or (2):

This summary does not cover all of the risks of investing in [name of financial products]. You should also read [references to section 8 of the PDS (risks to [name of issuing group]’s business and plans) and to other places in the PDS that describe risk factors (for example, risks arising for investors from the nature of the product)].”