Contingent Liability Transactions. A contingent liability transaction is a transaction under the terms of which you will or may be liable to make further payments (other than charges) when the transaction falls to be completed or upon the earlier closing out of your position. These payments may or may not be secured by an amount in money (or represented by securities) deposited with a counterparty or a broker as a provision against loss on transactions made on account (a Margin). Contingent liability investment transactions for which a Margin is deposited (in other words, which are Margined) require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If you trade in futures, contracts for differences or sell options you may sustain a total loss of the Margin you deposit with Threadneedle to establish or maintain a position. If the market moves against you, you may be called upon to pay a substantial additional Margin at short notice to maintain the position. If you fail to do so within the time requires, your position may be liquidated at a loss and you will be responsible for the resulting deficit. Even if a transaction is not Margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract. Save as specifically provided by the FSA, Threadneedle may only carry out Margined or contingent liability transactions with, or for you, if they are traded on or under the rules of a UK or non-UK exchange that is recognised by the FSA as suitable for use by UK investors (a Recognised or Designated Investment Exchange). Contingent liability transactions that are not so traded may expose you to substantially greater risk.
Appears in 2 contracts
Samples: Subadvisory Agreement, Subadvisory Agreement (Columbia Funds Variable Series Trust II)
Contingent Liability Transactions. A contingent liability transaction is a transaction under the terms of which you will or may be liable to make further payments (other than charges) when the transaction falls to be completed or upon the earlier closing out of your position. These payments may or may not be secured by an amount in money (or represented by securities) deposited with a counterparty or a broker as a provision against loss on transactions made on account (a MarginMARGIN). Contingent liability investment transactions for which a Margin is deposited (in other words, which are MarginedMARGINED) require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If you trade in futures, contracts for differences or sell options you may sustain a total loss of the Margin you deposit with Threadneedle to establish or maintain a position. If the market moves against you, you may be called upon to pay a substantial additional Margin at short notice to maintain the position. If you fail to do so within the time requires, your position may be liquidated at a loss and you will be responsible for the resulting deficit. Even if a transaction is not Margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract. Save as specifically provided by the FSA, Threadneedle may only carry out Margined or contingent liability transactions with, or for you, if they are traded on or under the rules of a UK or non-UK exchange that is recognised by the FSA as suitable for use by UK investors (a Recognised or Designated Investment ExchangeRECOGNISED OR DESIGNATED INVESTMENT EXCHANGE). Contingent liability transactions that are not so traded may expose you to substantially greater risk.
Appears in 2 contracts
Samples: Subadvisory Agreement (Riversource Global Series Inc), Subadvisory Agreement (Riversource Global Series Inc)