PRIIPs - Overview and FAQs

From 1 January 2018 the Packaged Retail and Insurance-based Investment Products Regulation ("PRIIPs Regulation") will come into force which requires us to provide you with a pre-contractual Key Information Document. The main goal of the PRIIPs Regulation is to enhance investor protection standards for retail clients.

Examples of investments covered by the PRIIPs regulation include:

• Non-UCITs* Retail Schemes
• Foreign Exchange ("FX") Transactions (Forwards, Futures, Options)
• Over The Counter ("OTC") Derivatives (Caps, Collars and Swaps)
• Exchange Traded Derivatives
• Structured Products and Deposits

*Undertakings for Collective Investment in Transferable Securities (UCITS)

The KID (Key Information Document) must be provided to an EEA Resident Retail Investor when purchasing a product covered by PRIIPs.

A KID is a pre-contractual informative document which will be provided prior to the conclusion of any such transaction. A KID does not replace a Term Sheet. Both a KID pre-trade and a Term Sheet post-trade will be provided for a transaction covered by PRIIPs.

A KID will provide you with essential information about costs, potential risks and performance to enable you to better understand the product and make an informed investment decision. You will also be able to compare similar products on their risks, costs and performance. For more information please download the:

If you are an EEA Resident Retail Investor we will provide a KID to yourself or to a Person with written Authority who provides instructions on your behalf (ie. an authorised Investment Advisor).

Before concluding a trade you/your investment advisor will receive an email including a link to the KID. By clicking on the link you will have access to the most up-to-date document.

For Foreign Exchange ("FX") and Precious Metal ("PM") Forwards, Swaps, and Options a suite of pre-populated illustrative KIDs has been published on an HSBC Illustrative KIDs website. If you transact in FX products, the link will be provided to you and you will be able to consult a KID at all times, prior to the conclusion of the transaction.

We will give you or the advisor acting on your behalf sufficient time to understand the product features, including the performance, risks and costs set out in the KID. We will confirm with you that you are happy to proceed before we conclude the transaction. You will have the opportunity to delay the transaction if you need more time to read the KID and evaluate the transaction.

In exceptional circumstances, predominantly when trading a custom-tailored OTC Derivative or Securitised Structured Product, a specific KID will need to be created. If you do not wish to delay the transaction and request that we should proceed, we can provide you with a KID post-trade after the conclusion of the transaction, with your explicit consent. In line with the PRIIPs Regulation this is only allowed if the trade has been specifically requested by you and the instruction is given by email/phone or fax.