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HSBC Investment Statement
for Term Investments
This leaflet contains the Investment Statement for HSBC’s Term than Term Investments are not covered by this Investment Statement.
Investments, also known as Term Deposits. The Investment Statement
When placing a Term Investment with us you have a number of options
outlines the key features of HSBC’s Term Investments to enable
on maturity of the investment. Those most frequently used are:
comparison with other similar investments. This document is an
Investment Statement for the purposes of the Securities Act 1978. This • Re-invest the principal and interest for a further term decided by
Investment Statement is prepared as at March 2005. you;
Important Information
• Re-invest the principal for a term decided by you; or
(The information in this section is required under the Securities Act
• Withdraw the Term Investment.
1978.) 2 Who is involved in providing it for me ?
Investment decisions are very important. They often have long-term The issuer of this investment is The Hongkong and Shanghai Banking
consequences. Read all documents carefully. Ask questions. Seek Corporation Limited (“HSBC”). The New Zealand head office is
advice before committing yourself. situated at One Queen Street, Level 9, Auckland 1, New Zealand.
Choosing an Investment The HSBC Group (of which HSBC is a part) has provided financial
services to customers worldwide for over 135 years. HSBC has been
When deciding whether to invest, consider carefully the answers to the providing banking and financial services to New Zealand customers for
following questions that can be found below: over 15 years and is a registered bank under the Reserve Bank of New
What sort of investment is this? Zealand Act 1989. Should you have any queries on Term Investments
Who is involved in providing it for me? you can contact our Direct Service Centre on 0800 80 23 80,
24 hours a day, 7 days a week.
How much do I pay?
What are the charges? 3 How much do I pay ?
What returns will I get? Investing in our Term Investments is easy. Call into any branch of
HSBC to apply for a Term Investment. Then subject to our account
What are my risks?
opening requirements being met, your Term Investment can be opened
Can the investment be altered? on the spot. Alternatively, telephone our Direct Service Centre who will
How do I cash in my investment? advise you of the process required to set up a Term Investment account.
Who do I contact with enquiries about my investment? You can also open your Term Investment via our Internet Banking
service, if you are set up to do so. The investment is paid to HSBC at
Is there anyone to whom I can complain if I have problems with the the time when the Term Investment is made and can be paid in any
investment? manner as agreed between you and us.
What other information can I obtain about this investment? Payment can be made by making a cheque out to HSBC (crossed “Not
Transferable”), cash or transferring money from another account, with
Choosing an Investment Adviser us or from another bank.
You have the right to request from any investment adviser, a written Payments can be made at any HSBC Branch.
disclosure statement stating his or her experience and qualifications to
give advice. That document will tell you: You may make an investment of any sum as long as the investment is
above the minimum levels outlined below. These minimum levels are
• Whether the adviser gives advice only about particular types of subject to change by us from time to time as are the currencies on offer,
investments; and refer below for details of these minimum levels.
• Whether the advice is limited to the investments offered by one or 7 day term, minimum investment amounts:
more particular financial organisations; and
New Zealand Dollars NZD100,000
• Whether the adviser will receive a commission or other benefit US Dollars USD40,000
from advising you. Australian Dollars AUD80,000
You are strongly encouraged to request that statement. An investment Hong Kong Dollars HKD300,000
adviser commits an offence if he or she does not provide you with a 1 month to 5 year terms, minimum investment amounts:
written disclosure statement within five working days of your request.
You must make the request at the time the advice is given, or within New Zealand Dollars NZD5,000
one month of receiving the advice. Hong Kong Dollars HKD50,000
US Dollars USD5,000
In addition- Japanese Yen JPY600,000
• If an investment adviser has any conviction for dishonesty or has Canadian Dollars CAD5,000
been adjudged bankrupt, he or she must tell you this in writing; Singapore Dollars SGD5,000
and Australian Dollars AUD10,000
• If an investment adviser receives any money or assets on your Swiss Francs
Pounds Sterling
CHF5,000
GBP5,000
behalf, he or she must tell you in writing the methods employed
for this purpose. Euro EUR5,000
Tell the adviser what the purpose of your investment is. This is 4 What are the charges ?
important because different investments are suitable for different There are currently no fees associated with investing in a Term
purposes. Investment. However, if you wish to terminate your Term Investment
before its maturity date, or alter the terms of the investment, then
1 What sort of investment is this? we may charge you a break cost fee for this (or in extraordinary
This Investment Statement relates to the Term Investment products circumstances decline your request). The break cost fee may take the
offered to the public of New Zealand by us, being debt securities for form of a $100 administration fee plus a charge based on the economic
the purposes of the Securities Act 1978. A Term Investment is a deposit cost to HSBC of terminating your Term Investment. The economic
in New Zealand Dollars with a fixed term of investment and a fixed cost is based on the difference between HSBC’s Treasury funding rates
interest rate. Foreign currency Term Investments are also available (Value of Funds) at the date your Term Investment was established, and
from us. The principal sum invested is repayable by us to you on the date when your Term Investment is terminated. The Value of Funds
maturity of the investment and interest is paid either at agreed intervals represents the market value of funds available to HSBC. HSBC will
or on maturity. Products from issuers other than us and products other provide you with the specific amount of the economic cost prior to the
termination request being processed by HSBC. We may alter the break under the heading “What are the charges?” Additional investments
cost fee, including the administration fee component from time to time can be made at any time in accordance with the terms and conditions
at our discretion. applicable at that time.
An example of how the economic cost component will be applied is as
follows:
8 How do I cash in my investment ?
If you need to withdraw your investment before its maturity date, you
You wish to break a $250,000 Term Investment 80 days prior to the
can apply to do so by contacting us. If your application is accepted you
set maturity date. On the date your Term Investment was established,
will still be paid interest, but this may be at a reduced rate, as described
the Value of Funds was 6.380% per annum. On the date your Term
under the heading “What are the charges?”. We may also exercise our
Investment was broken prior to maturity the Value of Funds was
right to combine your accounts and to set off amounts we owe to you
6.591% per annum. The economic cost to HSBC of breaking your
against amounts you may owe to us. We may close your account at
Term Investment is therefore 0.211% per annum. To convert the
any time in accordance with the terms and conditions applicable at that
0.211% per annum economic cost to a daily cost, divide by 365 days,
time under any other agreement with us or if we are otherwise required
which equates to 0.000578% per day. The economic cost component
by law to surrender some or all of your funds to the appropriate
is therefore ($250,000 x 0.000578%) x 80 days. This equates to an
authorities.
economic cost of $115.60. In this example the total break cost fee
would be a $100 administration fee plus the $115.60 economic cost You are not entitled to sell or assign your Term Investment to another
of the term deposit break. The total break cost fee would therefore be person.
$215.60.
9 Who do I contact with enquiries about my
Where the Value of Funds has decreased between the date your Term investment ?
Investment was established and the date your Term Investment was
broken prior to maturity, no economic benefit will be passed on. The Enquiries about your investment may be made to an HSBC Customer
$100 administration fee would still apply. Services Officer at any HSBC Branch or by telephoning any HSBC
Branch or our Direct Service Centre on 0800 80 23 80.
HSBC may alter this break cost fee at any time at its discretion.
10 Is there anyone to whom I can complain if I have
5 What returns will I get ? problems with the Investment?
On maturity, HSBC will pay you the fixed interest rate at which
Any complaints about your investment should first be raised with
you agree to invest your money plus the principal invested (less
a Customer Services Officer or the Manager at the HSBC Branch
any amounts specified under the heading “What are the charges?”
that you first dealt with. Alternatively, you can telephone our Direct
if applicable). HSBC is legally liable to pay these returns. The key
Service Centre on 0800 80 23 80, 24 hours a day, seven days a week, or
factors that determine your returns will be the interest rate that you
contact us in writing at: PO Box 5947 Wellesley Street, Auckland, New
agree to invest your money at, the principal invested, the term of your
Zealand. They will explain our complaint procedures to you and should
investment and any tax deductions. HSBC does not promise any
be able to resolve any problems you may have. However, if the issue is
amount or level of return. Interest is paid on the sum invested at the
unresolved and you are dissatisfied with our complaint procedure, you
agreed frequency and rate of interest for the term of your investment
may contact the Banking Ombudsman for an independent review of
you have agreed with HSBC. The Term Investment terms you can
your complaint, by writing to:
agree with HSBC can currently range from seven days to five years.
We may change these timeframes from time to time. If funds are The Office of the Banking Ombudsman
received by an adviser on behalf of HSBC, the date of receipt of the Level 11, 109-111 Featherston Street
deposit will be deemed to be the date HSBC receives the funds from P O Box 10-573, The Terrace, Wellington, New Zealand
the adviser. We are required to deduct resident withholding tax from the
gross interest payable to you as a New Zealand resident investor unless You may also contact the Office of the Banking Ombudsman by calling
you hold a certificate of exemption. We are required to deduct non- 0800 805 950.
resident withholding tax from the gross interest payable to non-New
Zealand residents unless you agree with us to have the approved issuer 11 What other information can I obtain about this
levy deducted from the gross interest payable. We are legally obliged to investment ?
pay the tax to the Inland Revenue on your behalf. Further information about our Term Investments and HSBC is
contained in the following documents which are available free of
6 What are my risks ? charge on request from any HSBC Branch or its head office:
The main risks of you not recovering the sum which you paid for the
investment or of not receiving the returns described above are:
• a copy of HSBC’s most recent annual report, including the
financial statements;
• The insolvency of HSBC; • a copy of HSBC’s most recent Disclosure Statements issued
• HSBC receiving a deduction notice in respect of your funds from a pursuant to the Reserve Bank of New Zealand Act 1989;
third party (such as the IRD) claiming an interest in those funds; • a copy of HSBC’s most recent Investment Statement; and
• HSBC exercising its rights to combine your accounts or to set-off • a copy of HSBC’s Personal Financial Services Terms and
funds held in credit against amounts you owe to us. Conditions that are applicable to Term Investments.
You cannot be required to pay more money than you have agreed to
invest with us.
• A copy of HSBC’s most recent financial statements that have
been registered under the Financial Reporting Act 1993 and other
If we are put into liquidation during the term of the investment, then documents relating to HSBC are filed on a public register at the
secured creditors and those creditors preferred by statute will rank Companies Office of the Ministry of Economic Development, and
ahead of your claim. After the payment of these creditors your claim will be available for public inspection. The Companies Office may
will rank equally with all other unsecured creditors. charge a nominal fee for making HSBC’s file available for public
inspection.
On insolvency, you will not be obliged to pay any more than the
amount you invested with us. If a statutory manager is appointed to Annual interest PAYE withholding tax deduction certificates will be
HSBC, the ranking of your claim would be determined by the statutory issued in April if the gross domestic interest paid exceeds $20 and tax
manager in accordance with the relevant statutory framework. In is deducted. You may request information about your investment, such
addition if the investment you have made is in a foreign currency as the balance, from us at any time. You may obtain this information
the risk of loss resulting from movements in exchange rates can be by using our Automated PhoneBanking, Internet banking service if you
substantial. You should note that past performance of a currency is not are set up to do so.
necessarily an indication of its future performance and that advice, To find out about our competitive Term Investment rates simply call
opinions or other data relating to the future performance of a currency into any HSBC Branch or call our Direct Service Centre on 0800 80
are speculative. 23 80. You can also enquire by using our fully automated telephone
banking service, Automated PhoneBanking, if you are set up to do so
7 Can the investment be altered ? or visit our internet web site at www.hsbc.co.nz.
Once an investment is made its terms cannot generally be altered. We You have rights of access to and correction of personal information that
may in certain circumstances agree to the early or partial withdrawal we hold about you under the Privacy Act 1993. If you wish to make a
of the investment. However, the rate of interest payable to you may be request, please see the HSBC Branch where your accounts are held. We
adjusted to reflect the changes made and a fee charged, as described may impose a reasonable charge for complying with a request.
B0005-03-05
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