Documentation and Risk Warnings

RISK WARNINGS AND IMPORTANT INFORMATION

This website is issued in the U.K. by the London Branch of Societe Generale. Societe Generale is a French credit institution (bank) that is supervised by the European Central Bank (‘ECB’) and the Autorité de Contrôle Prudentiel et de Résolution (the French Prudential Control and Resolution Authority) (‘ACPR’) . This document is issued in the U.K. by the London Branch of Societe Generale, authorised by the ECB, the ACPR and Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request.

You should note that an investment in any of these Exchange Traded Products will not be covered by the provisions of the Financial Services Compensation Scheme, or by any similar scheme.

Although information contained herein is from sources believed to be reliable, Societe Generale makes no representation or warranty regarding the accuracy of any information. Any reproduction, disclosure or dissemination of these materials is prohibited. This site is maintained by Societe Generale, 10 Bishops Square, London E1 6EG.

General guidance

Societe Generale is the product provider of Societe Generale Exchange Traded Products. You cannot trade directly with Societe Generale. You can only trade Societe Generale’s Exchange Traded Products via a UK stockbroker.

A number of technical terms are used on this website. If you are in any doubt as to the meaning of such terms, then you should first consult the Educational Guides. There is also a glossary function which explains some of  the terms contained in the website. You can access the explanation by clicking on the relevant term within the product page. If you require further clarification please do not hesitate to contact us directly on etp@sgcib.com, or call 0800 328 1199.

Complex products

The products described on this website are considered complex and are therefore suitable for UK sophisticated retail and professional clients who have a good understanding of the underlying market and product characteristics. It is important that you appreciate at the outset that you could lose all of your invested capital when investing in these products. You should be satisfied that they are suitable for you in the light of your circumstances and financial position. If in any doubt, please consult an appropriately qualified financial adviser. We recommend that retail investors seek independent professional advice prior to investing.

Risk / Information icon system on website

Throughout this website, the icons set out below are used to draw your attention to important risk warnings and information that you must read in connection with the information being provided on our products. Please familiarise yourself with these icons now. When you see these icons on our website, hover your cursor over them to reveal the detail of the particular risk warnings, and read through this information before going any further. This will help to ensure that you are aware of any relevant risk warnings and/or information that you should know in order to understand how the information on our products is presented.

 information Information - Displays how to use a specific function of the website

Risk Risk Warning - Describes the risks that you take on when investing in this product

Tax Tax Treatment - States what you must understand with regards to Tax in relation to the product

 Audience Suitability/Audience – Informs visitors to the website who the product is suitable for

1.  INVESTMENT RISKS 

The products described within this website are not suitable for everyone. Your capital is at risk. You should not deal in these products unless you understand their nature and the extent of their exposure to risk. The value of the product can go down as well as up and can be subject to volatility due to a range of factors which include price changes in the underlying instrument and interest rates.

This disclaimer cannot disclose all the risks and other significant aspects of Exchange Traded Products. You should study the risk factors attaching to these products that are disclosed below and throughout this website.

Risk disclosure requirements for private investors

We recommend that you consult an appropriately qualified financial adviser prior to considering any investment in a product described on this website.

a. Appropriateness Test: 

Securitised derivatives (including Short & Leverage ETPs) are classified as complex financial products and therefore prior to trading these products with your broker they will be required to assess whether you have necessary knowledge and experience in order to understand the risks involved in dealing in these products.

https://www.handbook.fca.org.uk/handbook/COBS/10

b. Suitability Test: 

The purpose of the suitability test is to ensure that the products and services offered meet the client’s investment objectives. In addition it ensures that the client shall be able financially to bear the risks of the investment (including any relevant loss of capital) and that the client has the necessary experience and knowledge to understand these risks.  

When providing personal recommendations in relation to complex products your adviser must have undertaken a suitability test and must only recommend products and services that are in accordance with the results of the suitability test. 

Please note that we do not provide investment advice. 

https://www.handbook.fca.org.uk/handbook/COBS/9

Counterparty risk 

Listed Products are issued by SGA Societe Generale Acceptance, SG Issuer, SG Effekten, each a member of the SOCIETE GENERALE group of companies. The identity of the issuer of any product will be indicated on the product page on this website. 

Any failure of the relevant SOCIETE GENERALE group Issuer to perform obligations when due may result in the loss of all or part of an investment.

Secondary market warning 

SG Option Europe is the only market maker in SG Exchange Traded Products. Under normal conditions SG Option Europe will endeavour to provide a market-making service, which involves giving the right market value and ensuring liquidity, both when buying and selling a financial product under specific conditions.  Such arrangements may be temporarily or indefinitely curtailed as a result of technical problems within companies of the SOCIETE GENERALE Group or the London Stock Exchange or data vendors or telecommunications carriers, or in the event of pending announcements by or difficulties in procuring information on underlying companies. 

We are committed to ensure our Exchange Traded Product prices are always broadcast, however due to factors often out of our control e.g. technical issues with providers' feeds, there may be occasions whereby our Exchange Traded Product prices are not broadcast. In such events, we will always endeavour to do whatever is in our power to resolve these issues promptly. 

Under normal conditions SG Option Europe will endeavour to provide a market-making service.

As a result of this secondary market risk, you may find it difficult or impossible in certain extreme circumstances to sell the relevant Exchange Traded Product or may be offered a price that is significantly less than you paid for it. 

2. PRODUCT SPECIFIC RISK FACTORS

The following provides a summary of the key risks relating to each product type that can be found on this website. For further information on any product please ensure that you read the relevant product guide and final terms prior to investing. You can also find an explanation of key terms in our glossary.

 Short & Leverage ETP Risk Factors

  • Capital risk. Capital is fully at risk and is not covered by the provisions of the Financial Services Compensation Scheme (“FSCS”), or any similar scheme.
  • Leverage risk. If the investment results in a loss, any such loss will be multiplied by 2, 3 or 5 times , depending on the leverage factor of the product. As such, you could lose more than you would if you invested directly in the underlying asset.
  • Underlying Asset risk. The underlying asset can be volatile, which can lead to large movements in price; either for you, or against you.
  • Compound returns. Gains and losses are compounded over periods of more than one Trading Day, and as such will deviate from the leveraged performance of the underlying asset.
  • Counterparty risk. If SG Issuer as the Issuer or Societe Generale as the Guarantor were to default or become insolvent, the product will terminate. The amount you receive back will depend on the value of the Collateral Assets.
  • Liquidity risk. SG Options Europe is the only party providing prices for these products. Prices will only be available in normal market conditions.
  • Currency risk. If the underlying asset is quoted in a currency other than GBP, exchange rate fluctuations will impact the price of the product

3.  IMPORTANT INFORMATION

A. Corporate actions notice 

As a result of corporate actions such as rights issues, share splits, share buy backs and take over and mergers, the parity and strike levels of Exchange Traded Products may be adjusted to reflect such activity. The reason for this is to ensure that Exchange Traded Product investors are not disadvantaged and do not gain undue benefit by equity adjustments. When such a change takes place, if you require any further information please do not hesitate to contact us. Further information regarding the calculation of the changes can be supplied upon request. 

B. Third party information 

Any third-party advertising, information and referral buttons containing hyperlinks are not recommendations or endorsements by SG or its respective directors, affiliates or employees. The user is referred to the relevant third party for all relevant information, including complete information on that entity's investment adviser or dealer licensing status (if applicable). 

All reasonable care has been taken by Societe Generale to ensure that all statements of fact and opinion contained in the materials provided by a third party are fair, clear and not misleading. Nevertheless, Societe Generale makes no representation or warranty regarding the accuracy of any third party information and is not responsible for third party content in any way.   

C. UK residents only 

This site is intended for investors who intend to trade in SG Exchange Traded Products in the United Kingdom. It is not provided to any person who is a resident of any other country. 

You should note that holdings in this product will not be covered by the provisions of the Financial Services Compensation Scheme, or by any similar scheme.  In particular, the investments can be neither offered nor transferred in the United States. 

D. No investment advice 

Nothing in this website constitutes advice on the merits of buying, or selling a particular investment or exercising any right conferred by the products described. SG does not offer investment advice in respect of these products. Unless you are an institutional or professional investor, you should seek independent financial advice in relation to the products contained in this website.

E. Accuracy and reliability of information 

The information in this website is, to SG's knowledge, reliable and accurate but this cannot be guaranteed. The views of SG reflected in this website may change without notice. Figures included in this website take no account of personal tax liability. 

No investment decision should be taken without reading the Final Terms relating to the particular Exchange Traded Product concerned. A copy of the Final Terms may be obtained from Societe Generale at 10 Bishops Square, London E1 6EG upon request. 

F. Disclosure of interest 

SG or its associates may from time to time have a position, or material interest in the products described in this website or the investments underlying them. 

Generally Societe Generale and its subsidiaries will be the only market maker in the Exchange Traded Products discussed and will or may have provided significant advice in relation to the Exchange Traded Products and the investments underlying them.

G. Trademarks

The name, logo and trademarks of SG and its affiliates ('SG') are reproduced by permission of SG. Where any product is based on an index, the index provider will have no liability to you in respect of its activities in respect of that index. 

H. Risk Warning

This Risk Warning is available to view at all times via a link at the top of each page. However, you should refer to it periodically to remain familiar with the relevant risks associated with Exchange Traded Products.  

I. Tax Disclaimer 

Any statement in relation to tax, where made, is generic and non-exhaustive and is based on our understanding of the laws and practice in force as of the date of this document and is subject to any changes in law and practice and the interpretation and application thereof, which changes could be made with retroactive effect. Any such statement must not be construed as tax advice and must not be relied upon. The tax treatment of investments will, inter alia, depend on an individual’s circumstances. You must consult with an appropriate professional tax adviser to ascertain for themselves the taxation consequences of acquiring, holding and/or disposing of any investments mentioned on this website.

TAX OPINION

Societe Generale is currently in the process of getting an update of its tax opinion with respect to cash settled warrants and it appears that there remains an uncertainty with respect to the eligibility of cash settled warrants to a CGT treatment. We are currently seeking further advice on this topic, and cannot in the meantime give any guidance or advice on this topic.

 

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