PRIIPS Regulation

Since January 2018, the Packaged Retail and Insurance-based Investment Products Regulation ("PRIIPs Regulation") has been in place with the aim of increasing the transparency and comparability of investment products through the issue of a standardised short form disclosure document - the PRIIPs Key Information Document (KID).

The Regulation is intended to make it easier for retail investors to understand and compare the key features, risk, rewards and costs of different products in scope of PRIIPs through the provision of the KID. This is a free-of-charge pre-contractual, stand-alone document that is to be shared with the investor prior to the conclusion of any transaction.

The regulation applies to PRIIPs products and services purchased by an EEA and UK Resident Retail Investor, regardless of their nationality. The regulation is applicable worldwide, no matter where a PRIIP is purchased, as long as it is purchased by an EEA or UK Resident Retail Investor.

Purpose of this website

This Website provides you, as a client of HSBC Private Bank, with illustrative Key Information Documents (KIDs) for a group of Foreign Exchange and Precious Metal products as required by the PRIIPs Regulation.

Purpose of a KID

A KID must be provided to you before each transaction so that you can compare different investments on the Market products and make an informed choice on whether to invest.

A KID will provide you with essential information about costs, potential risks and performance to enable you to better understand the product.

In the case of Foreign Exchange ("FX") products, so as not to delay execution, a suite of pre-populated illustrative KIDs has been created for the most commonly traded currency pairs and durations via this website.

Illustrative KIDs are published for FX and Precious Metal ("PM") Forwards, FX and PM Swaps, FX Options and Options Strategies.

For other products, KIDs will be provided to you on a trade-by-trade basis, before you trade. For further details, please speak to your Relationship Manager.

Key Information Documents (KIDs)

To ensure you are provided with the correct Key Information Document, please confirm answers to all of the following questions.

If you need assistance with any part of this form, please contact your Relationship Manager.

You will be required to select the jurisdiction where you are resident in order that you are presented with either the EEA version of a PRIIP KID or a version which is relevant for the United Kingdom.

Frequently asked questions

What is an illustrative KID?

An illustrative KID is created for products with similar characteristics. An illustrative KID is based on an example trade for a similar product with a specific currency pair and maturity.

In order not to delay the transaction, a suite of pre-populated illustrative KIDs for Foreign Exchange ("FX") and Precious Metal ("PM") Forwards, Swaps, and Options Strategies has been published on this website. You will be able to consult a KID at all times, prior to the conclusion of the transaction.

Is the Illustrative KID an accurate reflection of my trade?

An illustrative KID is not based on your actual transaction however the risks and gains and product description as illustrated in a KID will allow you to make an informed decision on whether to trade a specific product.

Your actual transaction may differ regarding costs, performance scenarios and pay-outs depending on the actual value and investment amount.

Can my Illustrative KID change?

All Illustrative KIDs available on our website will be updated regularly to ensure that all calculations on the KID reflect the current financial market conditions. You will therefore have constant access to the most up-to-date KID prior to the conclusion of the transaction.

Will I receive in addition, a KID specific to my transaction?

Should you wish to receive a trade specific KID, please speak to your Relationship Manager who will arrange for this to be provided to you.

Why do you provide a more limited range of currency pairs and duration illustrations for FX Options and Option Strategies?

Given the range of Option Strategies that we offer and the variability of the parameters and conditions of these contracts, for simplicity, we are only providing an illustration based on our most common trades.

If however you wish to receive this specific illustration pre-trade, we can provide this to you although this may delay the execution of your trade and you will need to acknowledge and agree to this beforehand.

What if the product/ currency pair or maturity I am interested in is not on the Internet site?

You may request a pre-trade KID from your Relationship Manager for the specific currency pair and duration of the trade that you wish to consider. However please note that this may delay the execution of your trade and you will need to acknowledge and agree to this beforehand.

Is the KID a contractual document?

The KID is not a contractually binding document and you will still receive a confirmation post-trade with the exact details of the terms of your trade, which is your contract with HSBC

Are the market rates quoted in the illustrative KID representative of what I can expect to receive?

The product details contained in the illustrative KID are a guide only and will not be the exact terms that you receive when you execute your trade. These details are refreshed on a daily basis to ensure that they are representative.

On what basis have the Performance Scenarios been prepared?

Performance scenarios represent the PRIIP performance assuming different market conditions (stressed - showing you what you may get back in extreme market conditions, including risk of total capital loss), unfavorable, moderate, and favorable) and are aimed at showing you how an investment of 10,000 EUR may develop under these different market conditions. The scenarios are calculated using a regulatory provided methodology and Monte Carlo simulation methods (which is a risk and uncertainty mathematical model) that use historically observed underlying day-to-day price fluctuations.