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. 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.

  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 Alternative Investment Market (AIM) 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. NEX Exchange (NEX). NEX Exchange is authorised as a Prescribed Market under the FSMA 2000. It is not a recognised or designated investment exchange and companies trading on NEX 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 NEX 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 NEX 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 NEX 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. Beaufort Securities Ltd (including its parent company and its subsidiaries, their directors, officers or employees) may have or previously held a material interest in the company which is the main subject matter of the 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. This document has been prepared and issued by Beaufort Securities Ltd on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst all reasonable care is taken to ensure that the facts stated are accurate and the opinions given are fair and reasonable, neither Beaufort Securities Ltd nor any director, officer or employee shall in any way be responsible for its contents. This document is intended to provide clients with information and should not be construed as an offer or solicitation to buy or sell securities.

  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.

  11. 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 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 your in the light of your circumstances and financial position. In deciding whether to trade, you should be aware of the following matters.

  12. 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').

  13. 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.

  14. Commissions. Before You begin to trade You should have details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (but, for example, as a percentage of contract value), You should obtain a clear and written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms. Please refer to the Charges and Commission sheet detailed in the Terms and Conditions of each account.

  15. Clearing House Protections. On many exchanges, the performance of a transaction by Your firm (or third party with whom he is dealing on your behalf) is ‘guaranteed’ by the exchange or clearing house. However, this guarantee is unlikely in most circumstances to cover You, the customer, and may not protect You if Your firm or another party defaults on its obligations to You under the clearing guarantee applicable to any on-exchange derivatives in which You are dealing. There is no clearing house for traditional options, nor normally for off exchange instruments which are not traded under the rules of a recognised or designated investment exchange.