This website is issued in the UK by the London Branch of Société Générale. Société Générale is a French credit institution (bank) authorized by the Autorité de Contrôle Prudentiel (the French Prudential Control Authority). Société Générale is subject to limited regulation by the Financial Services Authority in the UK. Details of the extent of our regulation by the Financial Services Authority are available from us on request.
A retail client is a client who is not a professional
client or an eligible counterparty. This will normally be individuals and small
businesses. For further details
please refer to the Glossary section of the FSA Handbook:
http://fsahandbook.info/FSA/html/handbook/Glossary/R
A professional client is one of the following:
– an entity required to be authorised or regulated to operate in the financial markets. The following list includes all authorised entities carrying out the characteristic activities of the entities mentioned, whether authorised by an EEA State or a third country and whether or not authorised by reference to a directive:
- a credit institution
- an investment firm
- any other authorised or regulated financial institution
- an insurance company
- a collective investment scheme or the management company of such a scheme
- a pension fund or the management company of a pension fund
- a commodity or commodity derivatives dealer
- a local firm
- any other institutional investor
– in relation to MiFID or equivalent third country business, a large undertaking, meeting two of the following size requirements on a company basis:
- balance sheet total of EUR 20,000,000
- net turnover of EUR 40,000,000
- own funds of EUR 2,000,000
– in relation to business that is neither MiFID or equivalent third country business, a large undertaking meeting either of the following conditions:
- a body corporate (including a limited liability partnership) which has (or any of whose holding companies or subsidiaries has) called up share capital of at least £10 million (or its equivalent in any other currency at the relevant time)
- a large undertaking that meets (or any of whose holding companies or subsidiaries meets) two of the following tests: (i) a balance sheet total of EUR 12,500,000; (ii) a net turnover of EUR 25,000,000; (iii) an average number of employees during the year of 250
- a national or regional government, a public body that manages public debt, a central bank, an international or supranational institution (such as the World Bank, the IMF, the ECP, the EIB) or another similar international organisation.
- another institutional investor whose main activity is to invest in financial instruments (in relation to the firm's MiFID or equivalent third country business) or designated investments (in relation to the firm's other business). This includes entities dedicated to the securitisation of assets or other financing transactions.
The above definition is only an extract and is not exhaustive. For further details please refer to the Glossary section of the FSA Handbook: http://fsahandbook.info/FSA/html/handbook/Glossary/P
Marketing Restrictions and Implications
Lyxor ETFs referred on this website are open ended mutual investment funds established under the French law and approved by the Autorite des Marches Financiers (the French Financial Markets Authority). The funds are UCITS compliant and are recognised under S.264 of the Financial Services and Markets Act 2000 and may be promoted to retail investors in the UK. Most, if not all, of the protections provided by the UK regulatory system generally and for UK authorised funds do not apply to these funds. In particular, investors should note that holdings in this product will not be covered by the provisions of the Financial Services Compensation Scheme, nor by any similar scheme in France.
This website is exclusively intended for persons who are not "US persons", as such term is defined in Regulation S or the US Securities Act 1933, as amended, and who are not physically present in the US. This website does not constitute an offer or an invitation to purchase any securities in the United States or in any other jurisdiction in which such offer or invitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. Potential users of this website are requested to inform themselves about and to observe any such restrictions.
Synthetic Index Replication
All Lyxor ETFs follow the synthetic index replication process. This consists of entering into a derivative transaction (a ‘Performance Swap’, which is defined below) with a Counterparty that provides complete and effective exposure to its benchmark index. Lyxor has adopted this methodology in order to minimise tracking error, optimise transaction costs and reduce operational risks.A Performance Swap is a contractual agreement which is negotiated over-the-counter (OTC) between two parties: the Lyxor ETF and its Counterparty. From a risk perspective, each Performance Swap ranks equally with other senior unsecured obligations of the Counterparty, such as common bonds (i.e., same rights to payments). In the Performance Swap, the Counterparty of the Lyxor ETF commits to pay the Lyxor ETF a variable return based on a pre-determined benchmark index, instead of a fixed stream of income (as in bonds). At the same time, the Counterparty will receive from the Lyxor ETF the performance and any related revenues generated by the Basket's assets (excluding the value of the Performance Swap) held by the Lyxor ETF. Information provided on individual ETFs includes data on the Basket relating to the ETF and the percentage value of the Basket represented by each asset. The information is relevant to the closing values on the date given.
Investment Risks
The products described within this website are not suitable for everyone. Investors' capital is at risk. Investors should not deal in this product unless they understand its 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 factors such as price changes in the underlying instrument and interest rates. If a fund is quoted in a different currency to the index, currency risks exist.
Prior to any investment in this product, you should make your own appraisal of the risks from a financial, legal and tax perspective, without relying exclusively on the information provided by us. We recommend that you consult your own independent professional advisors.
Specific Risks
Counterparty risk:
Through Lyxor ETFs, investors are exposed to counterparty risks resulting from the use of an OTC (Over-the-Counter) Swap with Societe Generale. In-line with UCITS guidelines, the exposure to the Swap Counterparty, Societe Generale, cannot exceed 10% of the total fund assets. It is recommended that potential investors study the Prospectus before investing.
As of 9th December 2011, Societe Generale was rated by S&P Ltd Long Term rating A+ and by Moodys Invest Service Long Term debt rating A1. Companies are rated by S+P Ltd from AAA (Most Secure/Best) to D (Most Risky/Worst), and are rated by Moodys Investor Services from Aaa (Highest quality) to C (Lowest rated).
Liquidity risk
Societe Generale is not the only market-maker for Lyxor ETFs. Societe Generale and any other market makers supporting Lyxor ETFs on exchange must follow the respective London Stock Exchange requirements and guidelines. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the index tracked by the ETF; a failure in the LSE, Societe Generale or other market-maker systems; or an abnormal trading situation or event.
The securities can be neither offered nor transferred in the United States.
Tax
The tax statement is only a general guide. The tax treatment of investments will depend on an individual’s circumstances. If investors are in any doubt as to their tax position, they must consult with an appropriate professional tax adviser. This statement of the UK tax treatment of the product 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 the interpretation and application thereof, which changes could be made with retroactive effect
Further information on the risk factors are available in the Risk Warning section of the website.
The Prospectus and any fund supplement are available at www.lyxoretf.co.uk. Information given about the past performance of the funds is no guarantee of future performance. No investment decision should be taken without reading the Prospectus and any fund supplement of the fund concerned.
Although information contained on the website are 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, Exchange House, Primrose St, London EC2A 2HT.
PLEASE REFER TO THE INVESTOR TYPE DESCRIPTION ABOVE BEFORE SELECTING YOUR INVESTOR TYPE AND PLEASE ENSURE YOU HAVE READ AND UNDERSTOOD THE INFORMATION PROVIDED IN THE REST OF THIS DISCLAIMER BEFORE YOU CLICK SUBMIT.
I am a sophisticated retail client who has experience of exchange traded funds and a clear understanding of the risks associated with these investments. I agree to appraise the risks involved in the investment as set out on this website and that I will seek independent advice before investing in any products on this website as necessary.
I am a professional client.