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) authorised by the Autorité de Contrôle Prudentiel et de Résolution (the French Prudential Control and Resolution Authority) and the 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.

Lyxor and Lyxor ETF are names used by Societe Generale to promote the products of Lyxor Asset Management.

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 E16EG.

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 listedproducts@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 products such as covered warrants) 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.

fsahandbook.info/FSA/html/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. 

fsahandbook.info/FSA/html/handbook/COBS/9 

Counterparty risk 

Listed Products are issued by SGA Societe Generale Acceptance, SG Issuer, SG Effekten, or Lyxor Asset Management, 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.

Through Lyxor ETFs, you are primarily exposed to a counterparty risk resulting from the use of OTC (over-the-counter) financial instruments contracted with a lending institution. The counterparty risk ultimately lies with Lyxor Asset Management AM. It is recommended that you study the Prospectus of the relevant Lyxor ETF before investing. 

Secondary market warning 

SG Option Europe, SG or any affiliate thereof is the only market maker in SG Exchange Traded Products. Under normal conditions SG Option Europe, SG or any affiliate thereof 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, SG or any affiliate thereof 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

A. Covered Warrant 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 amplified in the product. As such, you could lose more than you would if you invested directly in the underlying asset.
  • Underlying risk. The Underlying Asset can be volatile, which can lead to large movements in price; either for you, or against you.
  • Time Decay. Covered Warrants have a limited life, as denoted by the Strike Date of each issue. After this date, Covered Warrants can no longer be traded or exercised. Investors should note that Covered Warrants experience Time Decay (erosion of their Time Value) throughout their life. The rate of this decay accelerates as Covered Warrants near expiry and they may expire worthless.
  • Counterparty risk. Covered Warrants are issued by Societe Generale Acceptance, a member of the SOCIETE GENERALE group of companies. At any point during the life of the investment, any failure of Societe Generale Acceptance to satisfy its obligations when due may result in the loss of all or part of an investment.
  • Liquidity risk. SG Options Europe, SG or any affiliate thereof 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.

B. Daily Leverage Product 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 5 times. As such, you could lose more than you would if you invested directly in the underlying asset.
  • Underlying 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.
  • If you wish to hold your position overnight, you will pay a Commission of 0.50% per year in the same way as you would with a fund. The Commission is charged daily and taken from the value of the product at a prorated rate of 0.0013% per day.
  • Counterparty risk. Daily Leverage Products are issued by SGA Societe Generale Acceptance, a member of the SOCIETE GENERALE group of companies. At any point during the life of the investment, any failure of Societe Generale Acceptance to perform obligations when due may result in the loss of all or part of an investment. Investors should note that holdings in these products will not be covered by the provisions of the Financial Services Compensation Scheme, nor by any similar scheme.
  • Liquidity risk. SG Options Europe, SG or any affiliate thereof is the only party providing prices for these products. Prices will only be available in normal market conditions.

C. Infinite Turbos Risk Factors

  • Capital Risk - Capital is fully at risk and is not covered either by the provisions of the Financial Services Compensation Scheme (FSCS”), or any similar scheme.
  • Underlying Asset Risk - The underlying asset can be volatile, which can lead to large movements in price; either for you, or against you.
  • Leverage Risk - The leverage of the product can work against you and losses can exceed those of a direct investment.
  • Knock out Risk - If the price of the underlying asset reaches the Knock out Level, trading in the product will cease. The Redemption Value can be less than the difference between the Knock out Level and the Finance Level. The Redemption Value can also be equal to zero.
  • Counterparty Risk - The products are issued by Societe Generale Effekten GmbH, a 100% subsidiary of Societe Generale and guaranteed by Societe Generale. Any failure by Societe Generale Effekten to make payments due under the product may result in the loss of all or part of your investment. Insofar as payments are due by Societe Generale in its capacity as Guarantor, you are exposed to a credit risk on Societe Generale.
  • Liquidity Risk / Early Sale Risk - SG Options Europe, SG or any affiliate thereof is the only market maker and therefore the only party providing prices for the Product. Trading prices will only be available in normal market conditions.
  • Currency Risk - For an Infinite Turbo whose underlying asset is quoted in a currency other than GBP, exchange rate fluctuations can impact both positively and negatively upon the price of the Infinite Turbo.

 D. 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, SG or any affiliate thereof 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

E. Lyxor ETF Risk Factors

  • Capital at Risk. ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Benchmark Index. Investors’ capital is fully at risk and investors may not get back the amount originally invested. Investments are not covered by the provisions of the Financial Services Compensation Scheme (“FSCS”), or any similar scheme.
  • Counterparty Risk. Investors may be exposed to risks resulting from the use of an OTC (over the counter) Swap with Societe Generale. Physical ETFs may have Counterparty Risk resulting from the use of a Securities Lending Programme.
  • Currency Risk. ETFs may be exposed to currency risk if the ETF or Benchmark Index holdings are denominated in a currency different to that of the Benchmark Index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.
  • Replication Risk. ETFs are designed to replicate the performance of the Benchmark Index. Unexpected events relating to the constituents of the Benchmark Index may impact the Index provider’s ability to calculate the Benchmark Index, which may effect the ETF’s ability to replicate the Benchmark Index efficiently. This may create Tracking Error in the ETF.
  • Underlying Risk. The Benchmark Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Benchmark Index is calculated with reference to commodity futures contracts which can expose investors to risks related to the cost of carry and transportation. ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks.
  • Liquidity Risk. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Benchmark Index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, Societe Generale or other Market Maker systems; or an abnormal trading situation or event.
  • The Sub-Funds are recognised Collective Investment Schemes for the purposes of Section 264 of the Financial Services and Markets Act 2000 (the "FSMA") and the Prospectus is available to the general public in the United Kingdom on this website. You are advised that most, if not all, of the protections provided by the United Kingdom regulatory system generally and for UK authorised funds do not apply to recognised funds such as these Sub-Funds 

F. SG ETN/ Tracker Risk Factors

  • ETNs/Trackers are tracking instruments: their risk profile is similar to a direct investment in the underlying asset. Your capital is fully at risk and you may not get back the amount you originally invested. We recommend that you consult your own independent professional advisers prior to investing. The underlying asset indices may be complex and volatile.
  • ETNs are issued by Societe Generale Effekten or SG Issuer, each member of the SOCIETE GENERALE group of companies. 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.
  • Currency Risk: Tracking products may be exposed to currency risk if the product or Benchmark Index holdings are denominated in a currency different to that of the underlying asset they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.
  • Replication Risk: Tracking products are designed to replicate the performance of an underlying asset. Unexpected events relating to the constituents of the underlying asset may impact the underlying asset, which may affect the products ability to replicate that underlying asset efficiently. This may create Tracking Error in the product.
  • Underlying Asset Risk: The underlying asset may be complex and volatile.
  • Liquidity Risk / Early Sale Risk: SG Options Europe, SG or any affiliate thereof is the only market maker and therefore the only party providing prices for Structured Products. Trading prices will only be available in normal market conditions

G. Structured Products Risk Factors

  • With the exception of capital protected products, your capital is fully at risk when investing in Structured Products. Some Structured Products are designed to return the original Issue Price at maturity as long as the underlying asset does not close below the pre-defined ‘Protection Level’ at maturity, you should study the terms of your chosen product prior to investing.
  • We recommend that you consult your financial adviser prior to deciding which Structured Product if any is appropriate for you.
  • The Products are issued by SG Issuer or SGA Societe Generale Acceptance N.V., each a member of the Societe Generale group of companies. Any failure of SG Issuer or Societe Generale Acceptance N.V. to perform obligations when due may result in the loss of all or part of an investment.
  • The value of the product will depend on many factors including the value of the underlying asset which may be complex and volatile. We recommend that you study the relevant Final Terms before any investment
  • Underlying asset Risk: The underlying assets may be complex and subject to fluctuation
  • Liquidity Risk / Early Sale Risk: SG Options Europe, SG or any affiliate thereof is the only market maker and therefore the only party providing prices for Structured Products. Trading prices will only be available in normal market conditions. You can sell a Structured Product before the end of its term but may get back less than you invested irrespective of the performance of the underlying asset.
  • Structured Products are designed to be held until the Maturity Date. If you sell back a Structured Product early, you may get back less than your initial investment.

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 Exchange House, Primrose Street, London EC2A 2EG 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 SG 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

Societe Generale Options Europe, who is a member of the LSE, will be the only market maker in the products mentioned. 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

SG 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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