PRIIPS Regulation

On 1st January 2018 the Packaged Retail and Insurance-based Investment Products Regulation ("PRIIPs Regulation") came into force which aims to increase 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 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 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.
HSBC Private Bank
  • HSBC Trinkaus & Burkhardt AG (DE)
  • HSBC Private Banking (C.I) a division of HSBC Bank plc, Guernsey Branch (GG)
  • HSBC UK Bank plc, Private Banking (UK)
  • The Hongkong and Shanghai Banking Corporation Limited (HK)
  • HSBC Private Bank (Luxembourg) SA (LU)
  • HSBC Private Bank (Suisse) (CH)
  • The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (SG)
Product
Currency pair
Duration
Document language

Your Key Information Document

Frequently asked questions

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.

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.

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.

For FX & PM options a trade specific KID will be provided to you after the transaction.

 

Should you wish to receive a trade specific KID for any other product please speak to your Relationship Manager who will provide it to you after the transaction.

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. However, we will provide you with a KID post-trade for the specific contract that you have executed.

 

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.

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.

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

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.

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.