Financial Governance Insights

Empowering Financial Governance for Investments

At Karford Securities, we provide insights into financial governance, ensuring compliance and transparency in your investment decisions through our comprehensive governance framework and clear terms for financial instruments.

Our Governance Framework

Investment Compliance and Transparency

Explore our guidelines to navigate financial governance, ensuring informed investment decisions while adhering to regulations and maintaining transparency in all financial dealings with Karford Securities.

Financial Governance Insights

Ensure compliance and transparency in your investment decisions with our comprehensive governance framework.

Governance Framework Overview

Navigate our governance framework for informed investment decisions and compliance with financial regulations.

Investment Compliance Terms

Understand our clear terms for financial instruments to ensure compliance and transparency in investments.

Financial Governance

Explore insights for compliance and transparency in investments.

Governance Framework

Navigate our comprehensive governance framework for informed investment decisions and regulatory compliance.

Investment Compliance

Understand our clear terms for financial instruments ensuring compliance and transparency.

Important Information: Product Terms & Conditions for Financial Instruments

1. Introduction

1.1 These Product Terms for Financial Instruments ("FI Terms") govern the provision of financial instruments by Karford Securities Ltd to you. These terms outline the essential information regarding the usage, responsibilities, and risks associated with financial instruments offered by our firm.

1.2 In this document, references to 'we', 'us', or 'our' pertain to Karford Securities Ltd, the entity responsible for the facilitation of your financial transactions.

1.3 The terms 'you' or 'your' refer to you as an individual (if you operate as a sole trader) or to the business or legal entity that you represent, which may encompass companies, partnerships, or other organizations.

1.4 It is crucial for you to comprehend the nature of the risks involved when engaging with any financial instruments through our platform. We will ensure that you are provided with detailed information regarding the inherent characteristics and risks associated with our financial products. This understanding is essential in making informed decisions regarding your investments and managing the potential impacts on your financial situation.

2.Understanding Financial Instrument Terms

When engaging with our services, it's vital to familiarize yourself with the Financial Instrument (FI) Terms. These terms are not merely guidelines; they constitute a binding contract between you (the client) and us (the service provider). Since they serve as the foundation for any transaction, it is essential to be aware of them before proceeding.

2.1. **Forming a Binding Contract** The FI Terms are presented to you prior to entering into transactions. This is crucial because once you agree to these terms, you are entering into a legal commitment with us. It is important to note that these terms may be amended or varied over time, and it is advisable to stay updated on any changes.

2.2. **Product Agreements** In addition to adhering to the FI Terms, you may need to engage in standardized market-facing agreements or product agreements whenever you wish to transact specific financial instruments. These agreements serve to clarify the expectations and obligations of both parties in a transaction involving financial instruments. -

2.3.**Execution Requirement**: You will be notified when such product agreements are required, and it is mandatory to complete these agreements before executing any transactions or orders concerning financial instruments. Without adherence to this requirement, transactions cannot proceed.

2.4. **Supersession of Other Terms** It is essential to understand that the FI Terms supersede any previous agreements or terms you might have encountered. This means that if there are discrepancies between the FI Terms and any other documentation, the FI Terms will prevail. In summary, familiarize yourself with these FI Terms and keep abreast of any modifications. Your adherence to these terms and additional product agreements will facilitate smooth transactions and foster a transparent relationship between you and our services.

3.Understanding Your Knowledge and Experience in Financial Trading

When engaging in financial trading, it is essential to recognize the importance of your knowledge and understanding of the various financial instruments available in the market.

3.1 Pre-Trading Advice Should you desire, we can provide you with advice before you proceed with any trading activities. This consultation aims to enhance your understanding of the financial instruments available and assist you in making informed decisions. Our goal is to ensure that you are well-equipped to navigate the complexities of trading and understand the potential risks involved.

3.2 Independent Evaluation of Risks It is critical to note that any financial instruments you transact with us will be based on your capacity to perform your own independent evaluation of the risks associated with those instruments. Your assessment should be informed by your existing knowledge and experience in the financial sector. Understanding the nature of these risks is vital to successfully managing your investments.

3.3 Ongoing Information Sharing As part of our relationship, you agree to provide us with continuous information necessary for us to assess your knowledge and experience accurately. This ongoing dialogue is crucial, as it helps us tailor our services to better fit your trading profile. However, it is important to note that we have the right to assume that professional clients possess the requisite experience and knowledge to comprehend the risks involved with the specific financial instruments they intend to trade. This assumption is premised on the understanding that professional clients are typically well-versed in the complexities of financial markets and have a higher threshold for risk. ### Conclusion In summary, enhancing your knowledge and understanding of financial instruments is paramount to making informed trading decisions. While we are here to assist and offer advice, your ability to evaluate risks independently remains a critical component of your trading success. Regular communication regarding your experience and understanding will further empower your trading activities.

4.Trading Requests

4.1 Submission of Requests All trading requests, including those to enter into, cancel, or amend trades, hereinafter referred to as "requests", should be submitted to us through an electronic messaging system. However, there may be instances where we, or you, may agree to accept requests in a different format. Such alternative formats can include written communications sent via fax or post, or even verbal requests communicated over the phone. It is essential to ensure that requests are clear and comply with the agreed method of transmission.

4.2 Right to Decline We reserve the right to decline to act on any requests at our discretion. The only exception to this is in cases where a request involves the cancellation of a deal that has not yet been executed. For any verbal requests, please note that we will acknowledge them orally, and both your acceptance and our acknowledgment constitute a legally binding agreement. We will fully recognize requests through our actions, confirming the binding nature of the communicated request. By passing on requests through any method, you give us authorization to regard and treat them as binding, irrespective of the transmission means.

4.3 We reserve the right to decline to trade or accept requests, or to delay acceptance of such requests, at our discretion and without prior notice. The conditions under which we exercise this right are determined solely by us, as we deem appropriate.

4.4 When you send us a request or an order via electronic message, we will only consider your electronic message as having been received once we provide you with an acknowledgment of receipt. Please note that this acknowledgment does not imply that we agree to act upon any requests or orders contained within your electronic message.

5.Market Orders

When you engage with us regarding market orders, it is important to understand how they operate and the conditions under which we accept them. Below, we outline the key aspects related to market orders and the discretion we exercise in processing them.

5.1 Order Acceptance For certain financial instruments, we may consider accepting an "order" from you at a specified price, value, or level in the market. However, it is crucial to recognize that the decision to accept your order is at our sole discretion. This means that while we strive to accommodate requests, we reserve the right to refuse any order based on our evaluation of market conditions or other relevant factors.

5.2 Pricing and Charges In instances where we agree to your order, the price at which we will execute the transaction may include various charges that will be added to the quoted price. These charges can encompass transaction fees or other relevant costs that are applicable as per market standards. We will ensure that you are informed of any such charges in advance, allowing you to make informed decisions regarding your orders. Transparency is key to establishing trust, and we take care to communicate all costs associated with your order prior to execution.

5.3 Execution and Liability Once an order is accepted, we commit to endeavoring to execute it as swiftly and efficiently as possible. However, it is essential to understand that we cannot guarantee the execution of your order at the exact price requested due to fluctuations in the market. Moreover, we shall not be liable for any losses you may experience that arise from changes in market conditions occurring after your order has been placed. Market dynamics can lead to rapid price shifts, and while we aim to act promptly, external factors may influence the speed and efficacy of the transaction process. In conclusion, while market orders provide you the flexibility to engage in trading at your desired levels, it is imperative to operate with an understanding of the conditions and terms under which we accept such orders. We appreciate your trust in us to handle your trading needs and are committed to maintaining transparency and clarity throughout the process. In the realm of trading and financial markets, the execution of orders is a fundamental aspect that every trader needs to understand. Among the various types of orders, four key categories stand out: limit orders, market orders, stop loss orders, and benchmark orders. By referencing a benchmark, traders can ensure that they are trading at a fair price relative to market conditions. It is vital to understand that unless otherwise agreed upon, each open order remains in effect until it is either fully executed or cancelled by the trader.

6. Payment and Deliveries

6.1 Payments and Document Submission In order for us to complete transactions within the specified time frames, you are required to deliver all payments and any necessary certificates or documents not already in our possession promptly. Timeliness in providing these documents is crucial for the successful settlement of transactions, and your adherence to this requirement ensures that we can maintain our commitments effectively.

6.2 Delivery and Redelivery of Assets If you are obligated to deliver or redeliver an asset, it is imperative that you ensure the execution of all necessary documentation. This includes, but is not limited to, the appropriate and duly stamped instruments of transfer. Additionally, you must provide all required instructions to facilitate the seamless transfer of all rights, title, and interest from you to the transferee. It is essential that these rights be conveyed free from any and all liens, charges, and encumbrances, thereby ensuring a clear and unencumbered transfer of ownership.

6.3 The delivery and transfer of title for the relevant assets will occur in accordance with the prevailing rules and procedures pertinent to the respective asset and market. It is essential to note that these regulations may change over time, and all transactions will adhere strictly to the rules as they are in effect at the time of the transaction.

6.4 In the event that the required documents or immediately available funds are not provided within the established timeframe for settlement, we will not be obligated to complete any transaction or account settlements with you. This stipulation underscores the importance of timely compliance with the specified documentation and funding requirements to ensure the successful execution of all transactions.

7. Transaction and Trade Reporting

7.1 Obligations for Public Disclosure In accordance with applicable regulatory requirements, it is pertinent to clarify that when we are mandated to make transaction information public and/or accessible to a relevant regulatory authority, you hereby agree and acknowledge the following stipulations:

7.2. **Ownership of Transaction Information**: Any and all proprietary rights associated with such transaction information are exclusively owned by us. This means that we retain full rights to control, utilize, and manage such information as deemed appropriate under the law.

7.3. **Waiver of Confidentiality**: You agree to waive any duty of confidentiality regarding this transaction information that we are required to disclose. By doing so, you acknowledge that while we understand the importance of confidentiality in financial transactions, compliance with regulatory obligations takes precedence and necessitates the sharing of certain details. This provision is designed to enhance transparency and maintain regulatory standards, thereby fostering a fair trading environment for all participants. In accordance with the stipulated guidelines, we would like to clarify important aspects regarding the reporting and execution of transactions. We appreciate your cooperation and understanding on these matters, as they are essential to maintaining clear communication and operational effectiveness in our trading processes.

8.Distribution Arrangements

8.1 Transactions in Financial Instruments By proceeding with this agreement, you confirm and represent that any transactions you engage in concerning financial instruments will be conducted exclusively for your personal account. You agree not to act in the capacity of a distributor unless we have expressly granted our consent for such an arrangement. This condition is crucial for maintaining the integrity and clarity of our financial dealings and ensuring the responsibilities associated with distribution are clearly delineated.

8.2 Tax Liabilities and Costs It is essential to recognize that depending on your specific situation, you may have obligations for any applicable taxes and expenses that arise due to the tax treatment associated with financial instruments and the interactions you undertake. Understanding your potential tax liabilities is vital, as these can vary significantly based on the nature of the transactions and jurisdiction involved. In conclusion, our arrangement outlines clear guidelines regarding financial transactions and tax responsibilities, aiming to protect both parties while encouraging responsible trading practices.

9. Costs and Charges

9.1 Disclosure of Costs and Charges In accordance with the applicable regulations, we are committed to maintaining transparency regarding our costs and charges. This includes a comprehensive disclosure of any fees or commissions that may apply, as well as the basis on which these charges are determined. You will receive this information prior to and/or following the execution of transactions involving our financial instruments, as mutually agreed between us. Our objective is to ensure that you are fully informed about the costs associated with your transactions, allowing you to make well-informed financial decisions.

9.2 Responsibility for Liabilities and Charges As a client, you will be responsible for any liabilities, costs, charges, and expenses that arise in connection with your transactions. This includes, but is not limited to, the payment of taxes, brokerage fees, transfer fees, registration fees, or stamp duty that is properly incurred by us while executing transactions on your behalf. We advise you to be aware of these potential costs and consider them in your overall financial planning to avoid any unexpected liabilities.

9.3 Full Disclosure of Details of Costs and Charges. We believe in transparency, particularly for our retail clients, as well as for professional or eligible counterparty clients who may request additional disclosure regarding the costs associated with our services. Such disclosure is vital for informed decision-making and maintaining trust in our financial services.

9.4 When we provide you with full disclosure of costs and charges, we are committed to ensuring that you understand the financial implications of your transactions. This includes: i. Offering a general description of how we price transactions, elucidating the various factors that impact our costs and charges associated with the financial instruments and transactions we provide. This may involve factors such as market conditions, transaction size, and complexity of the instruments involved. ii. Supplying you in writing with pre-trade details, which will encompass clear information about the expected costs and fees applicable before any transaction is executed. This proactive approach ensures that you are fully informed and can assess the financial consequences of your decisions before committing to any trades.

10. Limitation of Liability

10.1 Liability Exclusions No Karford Securities person shall be held liable to you or any third party for any losses incurred in relation to these terms, any additional terms, or any transactions conducted. This limitation of liability is in effect except in circumstances where such losses arise directly as a result of gross negligence, willful misconduct, or fraud committed by the Karford Securities person involved.

10.2 Specific Exclusions Furthermore, no Karford Securities person shall assume liability to you or any third party regarding any transaction, the terms related to financial instruments, or any additional terms for the following: -

i**. Loss of Profits or Opportunities:** This includes any loss of profits or potential business opportunities that may result from an increase in the value of any financial instruments involved in a transaction or anticipated transaction. Conversely, it also pertains to losses incurred due to a decline in the value of such financial instruments. -

ii**. Other Exclusions:** Any other types of losses not explicitly covered, including but not limited to indirect, consequential, or incidental damages that may arise in connection with transactions or interactions involving Karford Securities persons. In summary, while acknowledging the importance of transactions within the framework of these terms, it is vital to recognize that liability is significantly restricted, ensuring that Karford Securities persons are not burdened by extensive repercussions arising from normal business risks, unless in cases of clear misconduct or negligence. In the context of financial dealings, it is important to clarify the roles and responsibilities of various parties involved, particularly concerning the handling of financial instruments, documents, certificates, and accounts. Financial instruments or certificates that grant or represent ownership rights may be held by us or by third-party entities, including banks with whom we maintain account relationships, as well as any other third parties with whom we engage in business or appoint to act on your behalf. It is important to note that our commitment to you does not extend to any entity that may be classified as an associate of ours. To the extent that you reasonably request, we will endeavor to make available to you any rights or claims that we may have against such third-party entities, particularly pertinent to matters regarding the title and ownership of financial instruments. Moreover, we acknowledge that any liabilities that arise in relation to our actions—be it giving, withholding, or withdrawing consent linked to the terms established herein, additional terms that may be agreed upon, specific transactions, or associated financial instruments—will be carefully noted. This includes any communications, documents produced, or information related to these matters. In summary, our engagement involves not only the careful management of financial instruments and related documentation but also a commitment to transparency regarding the rights and responsibilities that both parties hold. We are dedicated to adhering to your requests where reasonable and ensuring that our dealings are characterized by clarity and mutual understanding.

11. Important to note

It is important to note that nothing in these Financial Insstuments (FI) terms or any associated product agreements shall serve to exclude or restrict our obligations or liabilities that we owe to you under the regulatory framework established by the Hong Kong Securities and Futures Commission (HKSFC). Regardless of any provisions outlined in these terms or any additional terms, we reserve the right to take any actions we deem reasonably necessary to ensure adherence to applicable regulations.

12. These FI terms shall supersede

These FI terms shall supersede any prior written or verbal agreements made between us, excluding any product agreements, concerning the matters addressed within these FI terms. This ensures clarity and consistency in our mutual understanding and obligations.

13. Any Questions

If you have any questions regarding these financial terms, require further information, or would like to receive another copy of these financial terms, please do not hesitate to reach out to your Karford Securities representative. In terms of regulation, we are governed by the Hong Kong Securities and Futures Commission (HKSFC). This regulatory body ensures that our operations comply with the relevant laws regarding financial securities and investments.

14. Market Abuse

Market abuse is a serious offense that undermines the integrity of financial markets and erodes investor confidence. Specifically, it encompasses two primary areas: insider trading and market manipulation. Understanding the legal frameworks surrounding these issues is crucial for anyone participating in financial markets.

i**Insider Trading** Insider trading occurs when an individual buys or sells financial instruments based on non-public, material information about a company. "Material information" refers to information that could influence an investor's decision to buy or sell securities.This could include details about a company's earnings, major contracts, mergers and acquisitions, or any other significant developments. If you possess this insider information, you are legally barred from trading financial instruments based on this knowledge. Furthermore, it is prohibited to recommend or prompt others to trade based on this information. The reasoning behind these laws is clear: trading on insider information can give certain individuals an unfair advantage, thereby distorting the market and harming other investors. Such actions can seriously disrupt the functioning of a market, leading to inefficiencies and losses for uninformed investors.

ii**Legal Consequences** Violations of the laws prohibiting the misuse of inside information and engaging in market manipulation are treated with the utmost seriousness. Regulatory bodies, such as the relevant financial authorities, have strict enforcement mechanisms in place. Penalties for engaging in these illegal activities can include substantial fines and, in some cases, even imprisonment. The repercussions serve as a deterrent against such unethical behavior, reinforcing the importance of fair trading practices.

iii**Conclusion** Both insider trading and market manipulation not only breach legal standards but also erode trust in financial markets. Understanding these regulations is imperative for investors, brokers, and financial professionals alike. Staying informed about and compliant with these laws helps maintain a healthy, transparent financial ecosystem that supports investor confidence and market integrity.

15. Severability Clause

In the event that any provision of these terms and conditions (hereinafter referred to as "fi terms") is determined by a court or any regulatory or administrative body with competent jurisdiction to be invalid or unenforceable, the following principles shall apply:

i**Non-Affectation of Other Provisions**: The finding of invalidity or unenforceability for any specific provision shall not impact the remaining provisions of these fi terms, which shall continue to be in full force and effect. Each provision is intended to stand independently, and the validity of the other provisions is not contingent upon any single clause.

ii**Modification for Enforceability**: In cases where a court finds that a specific provision would be valid or enforceable if certain parts were deleted, such a provision shall still apply with the necessary modifications. The intention is to preserve the original purpose and intent of the provision to the fullest extent possible while ensuring it complies with legal standards.

iii**Good Faith Negotiation**: If a particular provision is deemed invalid or unenforceable, both parties—the user and the provider—agree to engage in good faith negotiations. The objective of these negotiations will be to establish a valid and enforceable provision that closely mirrors the original intent and purpose of the invalid provision. This severability clause reflects a commitment to uphold the integrity of the fi terms as a whole, ensuring that even if part of the agreement must be altered or removed, the principles and agreements set forth remain intact and respected.

16. Force Majeure

In this agreement, we acknowledge that our ability to fulfill our obligations may, at times, be hindered by events that are beyond our reasonable control. These events, commonly referred to as force majeure, encompass a wide range of circumstances that could impede our performance. Specifically, we will not be held liable for any delays in performance or for non-performance arising from any force majeure events. These may include, but are not limited to, significant breakdowns or failures in transmission systems, communication networks, or computer facilities. Moreover, interruptions resulting from strikes, labor disputes, or similar industrial actions also fall within this category. In addition, we recognize the potential impact of failures on the part of relevant exchanges, clearing houses, data service providers, and/or brokers. If any of these entities fail to fulfill their obligations for any reason, we cannot be held accountable for any resulting delays or non-performance of our duties. It is important to understand that these circumstances are typically unpredictable and can disrupt the normal course of business operations. For this reason, we urge all parties involved to acknowledge that while we strive for timely and complete performance of our obligations, certain incidents outside our control may necessitate delays or impede our ability to meet agreed-upon deadlines. In summary, our liability is limited when faced with force majeure events. We appreciate your understanding that in the face of such eventualities, we may be unable to deliver services as anticipated. Our commitment to maintaining open lines of communication will prevail as we navigate through challenging situations, and we will do our utmost to minimize any disruption caused by these unforeseen events.

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