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Product Disclosure Statement (PDS)

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Product Disclosure Statement (PDS) Product Disclosure Statement isclosure Australia – June 2021 Statement Associated Foreign Exchange Australia Pty Ltd. ABN: 85 119 392 586 ACN: 119 392 586 AFSL: Number: 305246 Address: Suite D, Level 38, 2 Park Street, Sydney, NSW 2000 Web: www.afex.com Phone: 02 9268 7600 Fax: 02 9268 7698 Email [email protected] Product Disclosure Statement June 2021 Table of Contents Purpose ............................................................................................................................. 3 Changes to this PDS .......................................................................................................... 3 About Us ........................................................................................................................... 3 Your Contract with AFEX ......................................................................................................... 4 What Financial Products Do We Offer? .................................................................................. 4 Spot Value Contracts ............................................................................................................... 4 Exotic Currency Spot Value and Forward Contracts……………………………………………………………………5 Value Today Contracts.. .............................................................................................................5 Value Tomorrow Contracts…………………………………………………………………………………………………………5 Window Forward Contracts ...........................................................................................................5 Outright Forward Contracts .................................................................................................... 5 Vanilla Option .................................................................................................................................6 Window Forward Extra……………………………………………………………………………………………………………….6 Participating Forward ......................................................................................................... …..7 Participating Forward Extra .................................................................................................... 7 Collar Option ........................................................................................................................... 7 Knock-out Forward ................................................................................................................. 8 Knock-out Ratio Forward ........................................................................................................ 8 Ratio Forward .................................................................................................................................8 Ratio Forward Extra ........................................................................................................................8 Target Accrual Redemption Forward ..............................................................................................9 Additional Products Offered ...........................................................................................................9 Terms and Conditions ........................................................................................................... 17 Foreign Exchange Option Partial or Full Pre-Delivery ........................................................... 17 Cancellation .................................................................................................................... 17 Client Money......................................................................................................................... 18 Significant Benefits of Our Products ..................................................................................... 18 Significant Risks of Our Products .......................................................................................... 18 How to Open an Account with AFEX .................................................................................... 21 When Payment is Made ....................................................................................................... 21 Cost of Foreign Exchange Transactions ................................................................................ 22 Other Ways We Are Remunerated ...............................................................................................23 Confirmation of Foreign Exchange Transactions .................................................................. 23 Taxation ................................................................................................................................ 23 Consumer Complaints & Disputes .................................................................................. 24 Privacy Statement .........................................................................................................................24 Glossary ........................................................................................................................... 25 Page 2 of 27 Product Disclosure Statement June 2021 visiting the website, or otherwise contacting us Purpose and asking for a free electronic or paper copy. We may make other information about our The purpose of this Product Disclosure products available to you, and that information Statement (PDS) is to provide you with may also be accessed from our website or by information to enable you to make an informed contacting us by phone or email. decision about whether to purchase a financial product from Associated Foreign Exchange About Us Australia Pty Ltd (“AFEX”, “we”, “us”, “our”). AFEX is a wholly owned subsidiary of This PDS sets out the significant features of our Associated Foreign Exchange Holdings, Inc. financial products, including their risks, benefits, headquartered in the United States of America. costs and other related information. The business was established in 1979 to provide a better level of service to firms and This PDS will: individuals with a need for foreign exchange • help you make meaningful comparisons services. with similar products; • help you decide if the product meet your needs; Besides Australia and the United States, the and group has presence in the United Kingdom, the • explain the rights, terms, conditions, and Channel Islands, Ireland, Spain, Sweden, obligations as it relates to each product. Switzerland, Italy, Singapore, and Canada. We have established trading relationships in over The PDS is an important document and we 40 countries and cultivated a diverse client recommend that you read it carefully before base representing every industry. acquiring the financial product, and then keep it in a safe place. AFEX is the issuer of the products described in this PDS. You should consider this PDS before making a decision to acquire or continue to Warning: hold any of the products described in it. Trading in foreign exchange and foreign exchange derivative products involves the If you become a client, you will be assigned a potential for gain as well as the risk of loss. In dedicated Relationship Manager. That person some cases, that loss may exceed the amount will be your primary contact point and will help of money you commit to a transaction. you use our products and services. Movements in the price of foreign exchange rates are influenced by a variety of factors many of which are unpredictable. AFEX is unable to guarantee a maximum loss that you may suffer from trading. You must not use any products described in this PDS unless you have a comprehensive understanding how they work, including the risks and the costs involved. Changes to this PDS Information in this PDS that is not materially adverse to users of our products is subject to change and may be updated via our company website. You can access that information by Page 3 of 27 Product Disclosure Statement June 2021 Your Contract with AFEX Foreign Exchange Option Contracts: When you acquire a product from us you are • Vanilla Option(page 6) entering into a contract with AFEX in relation to • Window Forward Extra (page 6) the product. That contract is made up of: • Participating Forward (page 7) • Participating Forward Extra (page 7) • the relevant application form; • Collar Option (page 7) • the description of the products in this PDS; • Knock-Out Forward (page 8) • the terms and conditions provided to you (this • Knock-Out Ratio Forward (page 8) is usually part of the account application form, • Ratio Forward (page 8) but may include extra documents); and • Ratio Forward Extra (page 8) • any additional documents or • Target Accrual Redemption Forward (page 9) correspondence relating to one or more • Additional Products Offered (page 9) contracts with us. Each of the above products is explained in this The application forms, our standard terms and PDS. You should refer to the glossary at the end of conditions and any additional documents or this PDS for an explanation of specific terms. The correspondence relating to one or more contracts examples in this PDS are for illustrative purposes with us are separate documents to this PDS. The only and do not reflect actual market conditions. relevant application form for you will depend on whether you are using our services in your own Additional products follow this section. capacity (a personal account application form) or Spot Value Contracts on behalf of a business (a business account application form). The terms and conditions and Spot Value Contracts exchange one currency for description of fees and products within those
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