Three-tier risk categorisation

THREE-TIER RISK CATEGORISATION FOR STRUCTURED INVESTMENT PRODUCTS BY THE FINNISH STRUCTURED PRODUCTS ASSOCIATION

Below is a description of the three-tier risk categorisation for structured investment products offered in the Finnish financial markets recommended by the Finnish Structured Products Association. The risk categorisation is a rough indication of the level of risk related to an investment product. The purpose is to help the investor to distinguish between completely different levels of risk. Even the lowest risk category is not risk-free. The risk category symbol indicating the level of risk in a structured investment product should be attached to the marketing material for the product.

RISK CLASSIFICATION: LOW RISK. CAPITAL PROTECTION. Structured investment products, the nominal capital of which is returned at maturity if the issuer is solvent. The investment can include a premium of 15% at the most. The capital protection is only valid on the maturity date and it does not cover the premium or the fees and costs paid by the investor. The risk relating to the issuer’s repayment ability is described in this marketing brochure. The risk classification does not remove the investor’s obligation to carefully study this marketing brochure, the product-specific terms and conditions and the prospectus, if any, and the risks mentioned in them.

RISK CLASSIFICATION: MEDIUM RISK. Structured investment products in which the repayment of nominal capital depends on market performance, such as the trend in the market capitalisation of the reference company shares or the number of credit events in the reference companies, as well as the issuer’s repayment ability. The potential repayment of the nominal capital does not cover the premium or the fees and costs paid by the investors. The risk relating to the issuer’s repayment ability is described in this marketing brochure. The risk classification does not remove the investor’s obligation to carefully study this marketing brochure, the product-specific terms and conditions and the prospectus, if any, and the risks mentioned in them.

RISK CLASSIFICATION: HIGH RISK. Structured investment products in which the invested capital is similar to a premium and is not returned under any circumstances. The risk relating to the issuer’s repayment ability is described in this marketing brochure. The risk classification does not remove the investor’s obligation to carefully study this marketing brochure, the product-specific terms and conditions and the prospectus, if any, and the risks mentioned in them.

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