1. All investments are speculative and will fluctuate in value. It should not be assumed that the value of investments will always rise. Past performance will not necessarily be repeated and is no guarantee of future success.
2. You should carefully consider in the light of your financial resources whether investing in stocks and shares is suitable for you.
3. Changes in currency exchange rates may affect the value of your overseas investments (foreign securities).
4. Penny Shares. You run an extra risk of losing money when you buy shares in certain smaller companies including “penny shares”. There is a big difference between the buying price and the selling price of these shares. If you have to sell them immediately, you may get back much less than you paid for them. You may have difficulty in selling these shares. The price may change quickly and it may go down as well as up and it may be more difficult to buy and sell shares in the penny share category. You should therefore not invest amounts you cannot afford to lose.
5. Non-readily Realisable Investments. You may have difficulty in selling such investments at a reasonable price. In some circumstances it may be difficult to sell them at any price. It can be difficult to assess what would be a proper market price for these investments. You should not invest in these unless you have thought carefully about whether you can afford it and whether it is right for you.
6. Geared Investments. All companies are likely to use gearing as part of their investment strategy and may choose to borrow money (gearing) to make investments. The effect of gearing on investment trusts and investment companies may cause the share price to become more volatile than the asset value of their underlying investments and may result in the share price of your investment being subject to sudden and large falls. Dependent on the level of gearing, it may mean that you could get nothing back.
7. AIM. The AIM market of the London Stock Exchange is a market designed primarily for emerging or smaller companies. The rules of this market are less demanding than those of the official List of the London Stock Exchange and therefore carry a greater risk than a company with a full listing.
8. AQSE. AQSE is authorised as a Prescribed Market under the FSMA 2000. It is not a recognised or designated investment exchange and companies trading on AQSE are not listed or subject to the same level of regulation as those companies trading on the AIM or those companies with a full listing on the London Stock Exchange. It may be difficult to obtain reliable information about the current trading position of companies on AQSE and if there is only one market-maker quoting prices, there may be occasion where you may have difficulty in buying or selling shares at a reasonable price or at all. Similarly the difference between the buying and selling prices can be wide and prices being quoted on AQSE may only be indicative prices and not firm two-way prices. Additionally, there may have been little or no trading in the stock since its issue. Consequently, there is a higher level of risk attached to companies trading on AQSE and if you have to sell shares in these companies immediately, you may get back much less than you paid for them.
9. Material Interest. Allenby Capital is highly active in shares quoted on the AIM market and AQSE and its directors, officers or employees may hold or have previously held a material interest in companies which are the subject of a recommendation or research note, or any other company mentioned, and may be providing or have provided within the previous 12 months significant advice or investment services in relation to any company or a related company referred to in this document or any other associated document. Whilst we endeavour at all times to ensure that our research is clear, fair and not misleading, and accurately reflects our opinions at the date of publication, we do not hold our research out as being impartial and it should not be viewed as wholly objective since Allenby Capital may also be acting or seeking to act as market maker, broker or adviser to; or have taken positions as a principal in the companies featured in the research notes. Investments in these shares are considered by the market professionals to be highly speculative and there is always the risk of partial or complete capital loss. The company will assume, unless it receives written instructions from you to the contrary, that you understand and accept the risk inherent in these investments.
10. Conflicts of Interest. We have a documented policy of Treating Customers Fairly and use Our best endeavours to avoid any conflict of interest arising. Where conflicts do arise however, we ensure fair treatment to all our customers by disclosure, internal rules of confidentiality, declining to act, or otherwise. We will not unfairly place our interests above those of our customers.

Warrants & Derivates Risk Warning Notice

This notice is provided to you, as a private customer, in compliance with the rules of The Financial Conduct Authority (FCA). Private customers are afforded greater protections under these rules under these rules than other customers, and you should ensure that your broker tells you what these are. This notice cannot disclose all of the risks and other significant aspects of warrants. You should not deal in them unless you understand the nature of the transaction you are entering into and the extent of your exposure to potential loss. You should consider carefully whether warrants are suitable for you in the light of your circumstances and financial position. In deciding whether to trade, you should be aware of the following matters.

Warrants

A warrant is a right to subscribe for shares, debentures, loan stock or government securities, and is exercisable against the original issuer of the securities. Warrants often involve a high degree of gearing, so that a relatively small movement in the price of the underlying security results in a disproportionately large movement in the price of the warrant. The prices of warrants can therefore be volatile. You should not buy a warrant unless you are prepared to sustain a total loss of money you have invested plus any commission or other transaction charges. Some other instruments are also called warrants but are actually options (for example, a right to acquire securities which is exercisable against someone other than the original issuer of the securities, often called a ‘Covered Warrant’).

Off-Exchange Transactions

Transactions in off-exchange warrants may involve greater risk than dealing in exchange traded warrants because there is no exchange market through which to liquidate your position, to assess the value of the warrant or the exposure to risk. Bid and offer prices need not be quoted, and even where they are, they will be established by dealers in these instruments and consequently it may be difficult to establish what is a fair price. Your broker must make it clear to you if you are entering into an off-exchange transaction and advise you of any risks involved.

Commissions

Before you begin to trade you should have details of all commissions and other charges for which you will be liable.

Foreign Markets

Foreign markets will involve different risks to UK markets. In some cases the risks will be greater. On request, your broker must provide an explanation of the protections which will operate in any relevant foreign markets, including the extent to which he will accept liability for any default of a foreign broker through whom he deals. The potential for profit or loss from transactions on foreign markets will be affected by fluctuations in foreign exchange rates.

AIM

The AIM market of the London Stock Exchange is a market designed primarily for emerging or smaller companies. The rules of this market are less demanding than those of the official List of the London Stock Exchange and therefore companies quoted on AIM carry a greater risk than a company with a full listing.

AQSE

AQSE is authorised as a Prescribed Market under the FSMA 2000. It is not a recognised or designated investment exchange. Companies trading on AQSE are not listed and are not subject to the same level of regulation as those companies trading on the AIM or those companies with a full listing on the London Stock Exchange and there is a much higher level of risk attached to companies trading on AQSE. It may be difficult to obtain reliable information about the current trading position of companies on AQSE and if there is only one market-maker quoting prices, there may be occasion where you may have difficulty in buying or selling shares at a reasonable price or at all. Similarly the difference between the buying and selling prices can be wide and prices being quoted on AQSE may only be indicative prices and not firm two-way prices. Additionally, there may have been little or no trading in the stock since its issue. Consequently, if you have to sell your shares immediately you may get back much less than you paid for them.