Warning: This document is simply a guideline template designed to assist Financial Brokers in producing Statements of Suitability that should be tailored to the individual investment requirements and investment objectives of each individual client/investor. While this draft document provides the Key Features of the product concerned and suggests the Target Market to which the product could be considered suitable, Financial Brokers should consider and insert the individual circumstances of each client/investor when tailoring their Statement of Suitability finally presented to each client/investor.

Warning: Each Statement of Suitability should be tailored to the individual circumstances, needs and objectives of each client/investor. The Financial Broker is responsible in full for the content of the Statement of Suitability presented to the client/investor.

The information in yellow throughout this document should be inserted by the Financial Broker.

The information in green throughout this document is optional and should be inserted by the Financial Broker as required.

Sample Statement of Suitability – Broker Solutions Secure Bond6

Important Notice – Statement of Suitability[or Advice]

This is an important document which sets out the reasons the product(s) or service(s) [advice] offered or recommended is/are considered suitable, or the most suitable, for your particular needs, objectives and circumstances.

Scope of the Statement of Suitability

The purpose of this document is to outline the reasons why the Broker Solutions Secure Bond 6 (the Bond) is the most suitable product for you.

Your Investment Needs and Objectives

During our discussions, you outlined your investment needs and objectives as follows:

Investment needs and objectives should be inserted here. For example:

  • Primary Investment Objectives e.g. capital growth and/or income, level of Capital Protection etc.
  • Attitude to Risk/Risk Profile (in particular, where relevant, the importance of Capital Security to the client/investor)
  • Investment Term
  • Any Need for Access to Funds
  • Need to Accumulate Funds
  • Any other relevant Needs or Objectives, Likes or Dislikes

The Financial Broker may also wish to reconfirm the Personal Circumstances of the client/investor. For example:

  • Name
  • Age
  • Health
  • Knowledge and Experience of financial products
  • Dependents
  • Employment Status
  • Known future changes to his/her circumstances

The Financial Broker may also wish to reconfirm the Financial Situation of the client/investor. For example:

  • Income
  • Savings
  • Pension Planning
  • Current financial products owned and other assets
  • Debts and financial commitments

Our Recommendation

We believe that the Broker Solutions Secure Bond 6is consistent with your investment objectives and risk profile. Furthermore, having conducted research of the various investment products that are consistent with your objectives and risk profile, we have concluded that the Broker Solutions Secure Bond 6is the most suitable available.

You may wish to share the product comparison research with your client by inserting reference to it here?

If the Financial Broker provided an oral explanation of the product during his/her discussions with the client/investor, the Financial Broker should record the details of such an explanation here.

Broker Solutions (the provider of the Bond) has targeted the Bond at investors who:

  • Have received advice from a Financial Broker and for whom this Bond is appropriate and suitable.
  • Are Retail Clients within the meaning contained in the Markets in Financial Instruments Directive (MiFID).
  • Have prior knowledge of investing in complex investments with capital at risk or have been advised by a Financial Broker regarding the risks and rewards of this type of Bond.
  • Are able to bear loss of 10% of the capital invested.
  • Are able to invest for the term of 5 years.
  • Expect the Underlying Investment to achieve moderately positive returns during the tem.
  • Have a risk appetite consistent with the product risk score of 2.
  • Can invest a minimum of €25,000.
  • Understand that inflation will erode the future value of the amount invested and any investment return.
  • Understand that the return of 90% of the initial investment amount is dependent on the creditworthiness of BNP Paribas.
  • Understand that any investment return is dependent on the performance of the Underlying Investment and on the creditworthiness of BNP Paribas.
  • Understand that the opportunity cost of an investment in this Bond is the interest foregone as a result of not placing the investment amount in an interest bearing deposit account.

We believe your investment objectives and risk profile are consistent with the Target Market identified by the Bond provider.

How the Broker Solutions Secure Bond 6is aligned to your Attitude to Risk

Broker Solutions considers the Secure Bond 6has a Risk Score of 2. This is consistent with your risk profile and attitude to investment risk.

The Bond is 90% Capital Protected by BNP Paribas at maturity at the end of the 5 year investment term. This is consistent with your requirement for a significant degree of Capital Security over a medium/long investment term.

Summary of the Key Features of the Broker Solutions Secure Bond 6

  • The Secure Bond 6 (the Bond) is an innovative new Investment Solution designed for investors who wish to invest in a Structured Retail Product that offers attractive potential investment returns linked to the performance of European Equities. The Bond is suitable as part of the process of constructing a genuinely diversified investment portfolio.
  • Investors in the Bond will benefit from 90% Capital Protection at maturity.
  • Investors in the Bond put 10% of their Capital at Risk. This means that you may lose up to 10% of the capital invested in this Bond. Broker Solutions considers the Bond to have a risk score of 2 (Conservative) on its risk scale.
  • The Underlying Investment of the Bond is the Solactive European Deep Value Select 50 Index (the Index).
  • Investors in Bond will receive 130% Participation in any growth in the Index (subject to averaging) added to 100% of their initial investment at maturity.
  • The Bond has a 5 year term.
  • The Bond will be listed on the Luxembourg Stock Exchange.
  • Daily liquidity will be provided to investors that wish to sell the Bond prior to maturity under normal market conditions and at the discretion of BNP Paribas Arbitrage SNC.
  • The Minimum Investment in the Bond is €25,000.
  • The Bond has Averaging in the last 12 months (13 observations).
  • The Closing Date for applications is 15 December 2017.
  • Taxation: Our understanding is that the potential returns will be subject to income Tax in the case of Personal Investors and exempt from taxation in the case of Pension and Post Retirement Investors.

Warning: If you invest in this Bond you can lose 10% of the money you invest.

Warning: The value of your investment may go down as well as up.

Please review the Bond Brochure in full where the all features of this Bond are outlined and a full list of risk warnings are provided before completing and signing the Bond Application Forms.

The Underlying Investment

The Underlying Investment of the Bond is the Solactive European Deep Value Select 50 Index. More information is available on the Index on the Broker Solutions website as follows:

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Fees & Charges

The Broker Solutions Secure Bond 6 has an total upfront fee of 4.5% payable to the Product Producer and to our firm, your Financial Broker, as described in the table below. The Bond has no ongoing fees and charges.

Description / Product Producer / Financial Broker / Total
Upfront Fees / 2.25% / 2.25% / 4.5%
Ongoing Fees / 0% / 0% / 0%

The fees and charges payable to the parties involved in the Bond are fully reflected in the terms of the Bond.