Common use of Standing Authority (Client Securities Clause in Contracts

Standing Authority (Client Securities. 7.1 The Customer authorizes FSL for the period from the date of this Agreement to the 31st day of March following the date hereof (both days inclusive), in relation to all Charged Securities held for or on the Customer's behalf, to: - (a) deposit such Charged Securities with an authorized financial institution as defined in the Ordinance as collateral for loans or advances made to FSL by such authorized financial institution; and/or (b) deposit such Charged Securities with a recognized Clearing House or another intermediary licensed or registered for dealing in securities as defined in the Ordinance as collateral for the discharge and satisfaction of FSL's settlement obligations and liabilities; and/or (c) apply such Charged Securities pursuant to a securities borrowing and lending agreement as defined in the Ordinance, without notice to the Customer, pursuant to Section 7 of the Securities and Futures (Client Securities) Rules under the Ordinance. 7.2 The Customer acknowledges that any consideration payable by or to the Customer for the borrowing, lending or deposit of such Charged Securities under this standing authority is to be set by separate treaty. 7.3 In consideration of FSL agreeing to act in accordance with this Clause 7, the Customer undertakes to keep FSL indemnified at all times against and to hold FSL harmless from all actions, proceedings, claims, damages, costs and expenses which may be brought against FSL or suffered or incurred by FSL and which shall have arisen either directly or indirectly from FSL so acting. 7.4 The standing authority given by the Customer under this Clause 7 is revocable by one (1) month's prior notice in writing served on FSL by registered mail AND upon full settlement of the Customer's indebtedness to FSL. 7.5 Until proper revocation of the standing authority under this Clause 7, FSL shall remain responsible to the Customer for such Charged Securities borrowed, loaned or deposited under this standing authority. 7.6 The Customer further agrees that the standing authority given by the Customer under this Clause 7 shall be automatically renewed for a further 12-month period if a written notice has been given to the Customer by FSL at least fourteen (14) days prior to its expiry and the Customer does not object to the renewal before its expiry. Such automatic renewal shall be confirmed in writing by FSL to the Customer within one (1) week from the date of expiry of the standing authority. In respect of Professional Investors, the standing authority may be renewed for any duration. 7.7 The Customer understands that such Charged Securities may be subject to liens of third parties and return of such Charged Securities to the Customer may be subject to satisfaction of such liens. Unless otherwise defined, terms and references defined or construed in Section I of these Terms and Conditions shall have the same meaning and construction when used in this Section III. The Customer understands, acknowledges and accepts that:- 1. Risk of Securities Trading The price of securities can and does fluctuate, sometimes dramatically, and any individual security may experience upward and downward movements, and may under some circumstances become valueless. The Customer appreciates that it is as likely that losses may be incurred rather than profit made as a result of buying and selling securities. 2. Risk of Leaving Securities with FSL There may be risks in leaving securities in FSL's safekeeping. For example, if FSL is holding the Customer's securities and FSL becomes insolvent, the Customer may experience significant delay in recovering the securities. This is a risk that the Customer is prepared to accept. 3. Risk of Providing An Authority to Hold Mail or to Direct Mail to Third Parties If the Customer provides FSL with an authority to hold mail or to direct mail to third parties, it is important for the Customer to promptly collect in person all contract notes and statements of the account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion. 4. Risks of Client Assets Received or Held Outside Hong Kong The Customer's assets received or held by FSL outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Ordinance and the rules made thereunder. Consequently, such assets may not enjoy the same protection as that conferred on the Customer's assets received or held in Hong Kong. 5. Risk of Trading Growth Enterprise Market ("GEM") Stocks GEM stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid. The Customer should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Current information on GEM stocks may only be found on the internet website operated by the SEHK. GEM companies are usually not required to issue paid announcements in gazette newspapers. The Customer should seek independent professional advice if the Customer is uncertain of or has not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.

Standing Authority (Client Securities. 7.1 27.1 The Customer authorizes FSL the Company for the period from the date of this Agreement to the first 31st day of March following the date hereof (both days inclusive), in relation to all Charged Securities securities collateral held for or on the Customer's behalf, to: - (a) deposit such Charged Securities securities collateral with an authorized financial institution as defined in the Ordinance as collateral for loans or advances made to FSL the Company by such authorized financial institution; and/or (b) deposit such Charged Securities securities collateral with a recognized Clearing House or another intermediary licensed or registered for dealing in securities as defined in the Ordinance as collateral for the discharge and satisfaction of FSLthe Company's settlement obligations and liabilities; and/or (c) apply such Charged Securities securities collateral pursuant to a securities borrowing and lending agreement as defined in the Ordinance, without notice to the Customer, pursuant to Section 7 of the Securities and Futures (Client Securities) Rules under the Ordinance. 7.2 27.2 The Customer acknowledges that any consideration payable by or to the Customer for the borrowing, lending or deposit of such Charged Securities securities collateral under this standing authority is to be set by separate treaty. 7.3 27.3 In consideration of FSL the Company agreeing to act in accordance with this Clause 727, the Customer undertakes to keep FSL the Company indemnified at all times against and to hold FSL the Company harmless from all actions, proceedings, claims, damages, costs and expenses which may be brought against FSL the Company or suffered or incurred by FSL the Company and which shall have arisen either directly or indirectly from FSL the Company so acting. 7.4 27.4 The standing authority given by the Customer under this Clause 7 27 is revocable by one (1) month's prior notice in writing served on FSL to the Company by registered mail AND upon full settlement of the Customer's indebtedness to FSLthe Company. 7.5 27.5 Until proper revocation of the standing authority under this Clause 727, FSL the Company shall remain responsible to the Customer for such Charged Securities securities collateral borrowed, loaned or deposited under this standing authority. 7.6 27.6 The Customer further agrees that the standing authority given by the Customer under this Clause 7 27 shall be automatically renewed for a further 12-month period if a written notice has been given to the Customer by FSL the Company at least fourteen (14) days prior to its expiry and the Customer does not object to the renewal before its expiry. Such automatic renewal shall be confirmed in writing by FSL the Company to the Customer within one (1) week from the date of expiry of the standing authority. In respect of Professional Investors, the standing authority may be renewed for any duration. 7.7 27.7 The Customer understands that such Charged Securities securities collateral may be subject to liens of third parties and return of such Charged Securities securities collateral to the Customer may be subject to satisfaction of such liens. Unless otherwise defined, terms and references defined or construed in Section I of these Terms and Conditions shall have the same meaning and construction when used in this Section III. The Customer understands, acknowledges and accepts that:- 1. Risk of Securities Trading The price of securities can and does fluctuate, sometimes dramatically, and any individual security may experience upward and downward movements, and may under some circumstances become valueless. The Customer appreciates that it is as likely that losses may be incurred rather than profit made as a result of buying and selling securities. 2. Risk of Leaving Securities with FSL There may be risks in leaving securities in FSL's safekeeping. For example, if FSL is holding the Customer's securities and FSL becomes insolvent, the Customer may experience significant delay in recovering the securities. This is a risk that the Customer is prepared to accept. 3. Risk of Providing An Authority to Hold Mail or to Direct Mail to Third Parties If the Customer provides FSL with an authority to hold mail or to direct mail to third parties, it is important for the Customer to promptly collect in person all contract notes and statements of the account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion. 4. Risks of Client Assets Received or Held Outside Hong Kong The Customer's assets received or held by FSL outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Ordinance and the rules made thereunder. Consequently, such assets may not enjoy the same protection as that conferred on the Customer's assets received or held in Hong Kong. 5. Risk of Trading Growth Enterprise Market ("GEM") Stocks GEM stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid. The Customer should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Current information on GEM stocks may only be found on the internet website operated by the SEHK. GEM companies are usually not required to issue paid announcements in gazette newspapers. The Customer should seek independent professional advice if the Customer is uncertain of or has not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.

Standing Authority (Client Securities. 7.1 The Customer authorizes FSL MSL for the period from the date of this Agreement to the first 31st day of March following the date hereof (both days inclusive), in relation to all Charged Securities held for or on the Customer's ’s behalf, to: - - (a) deposit such Charged Securities with an authorized financial institution as defined in the Ordinance as collateral for loans or advances made to FSL MSL by such authorized financial institution; and/or and/or (b) deposit such Charged Securities with a recognized Clearing House or another intermediary licensed or registered for dealing in securities as defined in the Ordinance as collateral for the discharge and satisfaction of FSL's MSL’s settlement obligations and liabilities; and/or and/or (c) apply such Charged Securities pursuant to a securities borrowing and lending agreement as defined in the Ordinance, without notice to the Customer, pursuant to Section 7 of the Securities and Futures (Client Securities) Rules under the Ordinance. 7.2 The Customer acknowledges that any consideration payable by or to the Customer for the borrowing, lending or deposit of such Charged Securities under this standing authority is to be set by separate treaty. 7.3 In consideration of FSL MSL agreeing to act in accordance with this Clause 7, the Customer undertakes to keep FSL MSL indemnified at all times against and to hold FSL MSL harmless from all actions, proceedings, claims, damages, costs and expenses which may be brought against FSL MSL or suffered or incurred by FSL MSL and which shall have arisen either directly or indirectly from FSL MSL so acting. 7.4 The standing authority given by the Customer under this Clause 7 is revocable by one (1) month's ’s prior notice in writing served on FSL MSL by registered mail AND upon full settlement of the Customer's ’s indebtedness to FSLMSL. 7.5 Until proper revocation of the standing authority under this Clause 7, FSL MSL shall remain responsible to the Customer for such Charged Securities borrowed, loaned or deposited under this standing authority. 7.6 The Customer further agrees that the standing authority given by the Customer under this Clause 7 shall be automatically renewed for a further 12-month period if a written notice has been given to the Customer by FSL MSL at least fourteen (14) days prior to its expiry and the Customer does not object to the renewal before its expiry. Such automatic renewal shall be confirmed in writing by FSL MSL to the Customer within one (1) week from the date of expiry of the standing authority. In respect of Professional Investors, the standing authority may be renewed for any duration. 7.7 The Customer understands that such Charged Securities may be subject to liens of third parties and return of such Charged Securities to the Customer may be subject to satisfaction of such liens. Unless otherwise defined, terms and references defined or construed in Section I of these Terms and Conditions shall have the same meaning and construction when used in this Section III. The Customer understands, acknowledges and accepts that:- 1. Risk of Securities Trading The price of securities can and does fluctuate, sometimes dramatically, and any individual security may experience upward and downward movements, and may under some circumstances become valueless. The Customer appreciates that it there is as likely an inherent risk that losses may be incurred rather than profit made as a result of buying and selling securities. 2. Risk of Leaving Securities with FSL MSL There may be risks in leaving securities in FSL's MSL’s safekeeping. For example, if FSL MSL is holding the Customer's ’s securities and FSL MSL becomes insolvent, the Customer may experience significant delay in recovering the securities. This is a risk that the Customer is prepared to accept. 3. Risk of Providing An Authority to Hold Mail or to Direct Mail to Third Parties If the Customer provides FSL MSL with an authority to hold mail or to direct mail to third parties, it is important for the Customer to promptly collect in person all contract notes and statements of the account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion. 4. Risks of Client Assets Received or Held Outside Hong Kong The Customer's ’s assets received or held by FSL MSL outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Ordinance and the rules made thereunder. Consequently, such assets may not enjoy the same protection as that conferred on the Customer's ’s assets received or held in Hong Kong. 5. Risk of Trading Growth Enterprise Market ("GEM") Stocks GEM stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid. The Customer should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Current information on GEM stocks may only be found on the internet website operated by the SEHK. GEM companies are usually not required to issue paid announcements in gazette gazetted newspapers. The Customer should seek independent professional advice if the Customer is uncertain of or has not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.

Standing Authority (Client Securities. 7.1 27.1 The Customer authorizes FSL MFL for the period from the date of this Agreement to the first 31st day of March following the date hereof (both days inclusive), in relation to all Charged Securities securities collateral held for or on the Customer's ’s behalf, to: - - (a) deposit such Charged Securities securities collateral with an authorized financial institution as defined in the Ordinance as collateral for loans or advances made to FSL MFL by such authorized financial institution; and/or and/or (b) deposit such Charged Securities securities collateral with a recognized Clearing House or another intermediary licensed or registered for dealing in securities as defined in the Ordinance as collateral for the discharge and satisfaction of FSL's MFL’s settlement obligations and liabilities; and/or and/or (c) apply such Charged Securities securities collateral pursuant to a securities borrowing and lending agreement as defined in the Ordinance, without notice to the Customer, pursuant to Section 7 of the Securities and Futures (Client Securities) Rules under the Ordinance. 7.2 27.2 The Customer acknowledges that any consideration payable by or to the Customer for the borrowing, lending or deposit of such Charged Securities 18 securities collateral under this standing authority is to be set by separate treaty. 7.3 27.3 In consideration of FSL MFL agreeing to act in accordance with this Clause 727, the Customer undertakes to keep FSL MFL indemnified at all times against and to hold FSL MFL harmless from all actions, proceedings, claims, damages, costs and expenses which may be brought against FSL MFL or suffered or incurred by FSL MFL and which shall have arisen either directly or indirectly from FSL MFL so acting. 7.4 27.4 The standing authority given by the Customer under this Clause 7 27 is revocable by one (1) month's ’s prior notice in writing served on FSL to MFL by registered mail AND upon full settlement of the Customer's ’s indebtedness to FSLMFL. 7.5 27.5 Until proper revocation of the standing authority under this Clause 727, FSL MFL shall remain responsible to the Customer for such Charged Securities securities collateral borrowed, loaned or deposited under this standing authority. 7.6 27.6 The Customer further agrees that the standing authority given by the Customer under this Clause 7 27 shall be automatically renewed for a further 12-month period if a written notice has been given to the Customer by FSL MFL at least fourteen (14) days prior to its expiry and the Customer does not object to the renewal before its expiry. Such automatic renewal shall be confirmed in writing by FSL MFL to the Customer within one (1) week from the date of expiry of the standing authority. In respect of Professional Investors, the standing authority may be renewed for any duration. 7.7 27.7 The Customer understands that such Charged Securities securities collateral may be subject to liens of third parties and return of such Charged Securities securities collateral to the Customer may be subject to satisfaction of such liens. Unless otherwise defined, terms and references defined or construed in Section I of these Terms and Conditions shall have the same meaning and construction when used in this Section III. The Customer understands, acknowledges and accepts that:- 1. Risk of Securities Trading The price of securities can and does fluctuate, sometimes dramatically, and any individual security may experience upward and downward movements, and may under some circumstances become valueless. The Customer appreciates that it is as likely that losses may be incurred rather than profit made as a result of buying and selling securities. 2. Risk of Leaving Securities with FSL There may be risks in leaving securities in FSL's safekeeping. For example, if FSL is holding the Customer's securities and FSL becomes insolvent, the Customer may experience significant delay in recovering the securities. This is a risk that the Customer is prepared to accept. 3. Risk of Providing An Authority to Hold Mail or to Direct Mail to Third Parties If the Customer provides FSL with an authority to hold mail or to direct mail to third parties, it is important for the Customer to promptly collect in person all contract notes and statements of the account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion. 4. Risks of Client Assets Received or Held Outside Hong Kong The Customer's assets received or held by FSL outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Ordinance and the rules made thereunder. Consequently, such assets may not enjoy the same protection as that conferred on the Customer's assets received or held in Hong Kong. 5. Risk of Trading Growth Enterprise Market ("GEM") Stocks GEM stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid. The Customer should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Current information on GEM stocks may only be found on the internet website operated by the SEHK. GEM companies are usually not required to issue paid announcements in gazette newspapers. The Customer should seek independent professional advice if the Customer is uncertain of or has not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.

Standing Authority (Client Securities. 7.1 27.1 The Customer authorizes FSL MFL for the period from the date of this Agreement to the first 31st day of March following the date hereof (both days inclusive), in relation to all Charged Securities securities collateral held for or on the Customer's ’s behalf, to: - - (a) deposit such Charged Securities securities collateral with an authorized financial institution as defined in the Ordinance as collateral for loans or advances made to FSL MFL by such authorized financial institution; and/or and/or (b) deposit such Charged Securities securities collateral with a recognized Clearing House or another intermediary licensed or registered for dealing in securities as defined in the Ordinance as collateral for the discharge and satisfaction of FSL's MFL’s settlement obligations and liabilities; and/or and/or (c) apply such Charged Securities securities collateral pursuant to a securities borrowing and lending agreement as defined in the Ordinance, without notice to the Customer, pursuant to Section 7 of the Securities and Futures (Client Securities) Rules under the Ordinance. 7.2 27.2 The Customer acknowledges that any consideration payable by or to the Customer for the borrowing, lending or deposit of such Charged Securities securities collateral under this standing authority is to be set by separate treaty. 7.3 27.3 In consideration of FSL MFL agreeing to act in accordance with this Clause 727, the Customer undertakes to keep FSL MFL indemnified at all times against and to hold FSL MFL harmless from all actions, proceedings, claims, damages, costs and expenses which may be brought against FSL MFL or suffered or incurred by FSL MFL and which shall have arisen either directly or indirectly from FSL MFL so acting. 7.4 27.4 The standing authority given by the Customer under this Clause 7 27 is revocable by one (1) month's ’s prior notice in writing served on FSL to MFL by registered mail AND upon full settlement of the Customer's ’s indebtedness to FSLMFL. 7.5 27.5 Until proper revocation of the standing authority under this Clause 727, FSL MFL shall remain responsible to the Customer for such Charged Securities securities collateral borrowed, loaned or deposited under this standing authority. 7.6 27.6 The Customer further agrees that the standing authority given by the Customer under this Clause 7 27 shall be automatically renewed for a further 12-month period if a written notice has been given to the Customer by FSL MFL at least fourteen (14) days prior to its expiry and the Customer does not object to the renewal before its expiry. Such automatic renewal shall be confirmed in writing by FSL MFL to the Customer within one (1) week from the date of expiry of the standing authority. In respect of Professional Investors, the standing authority may be renewed for any duration. 7.7 27.7 The Customer understands that such Charged Securities securities collateral may be subject to liens of third parties and return of such Charged Securities securities collateral to the Customer may be subject to satisfaction of such liens. Unless otherwise defined, terms and references defined or construed in Section I of these Terms and Conditions shall have the same meaning and construction when used in this Section III. The Customer understands, acknowledges and accepts that:- 1. Risk of Securities Trading The price of securities can and does fluctuate, sometimes dramatically, and any individual security may experience upward and downward movements, and may under some circumstances become valueless. The Customer appreciates that it is as likely that losses may be incurred rather than profit made as a result of buying and selling securities. 2. Risk of Leaving Securities with FSL There may be risks in leaving securities in FSL's safekeeping. For example, if FSL is holding the Customer's securities and FSL becomes insolvent, the Customer may experience significant delay in recovering the securities. This is a risk that the Customer is prepared to accept. 3. Risk of Providing An Authority to Hold Mail or to Direct Mail to Third Parties If the Customer provides FSL with an authority to hold mail or to direct mail to third parties, it is important for the Customer to promptly collect in person all contract notes and statements of the account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion. 4. Risks of Client Assets Received or Held Outside Hong Kong The Customer's assets received or held by FSL outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Ordinance and the rules made thereunder. Consequently, such assets may not enjoy the same protection as that conferred on the Customer's assets received or held in Hong Kong. 5. Risk of Trading Growth Enterprise Market ("GEM") Stocks GEM stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid. The Customer should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Current information on GEM stocks may only be found on the internet website operated by the SEHK. GEM companies are usually not required to issue paid announcements in gazette newspapers. The Customer should seek independent professional advice if the Customer is uncertain of or has not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.

Standing Authority (Client Securities. 7.1 27.1 The Customer authorizes FSL the Company for the period from the date of this Agreement to the first 31st day of March following the date hereof (both days inclusive), in relation to all Charged Securities securities collateral held for or on the Customer's ’s behalf, to: - - (a) deposit such Charged Securities securities collateral with an authorized financial institution as defined in the Ordinance as collateral for loans or advances made to FSL the Company by such authorized financial institution; and/or and/or (b) deposit such Charged Securities securities collateral with a recognized Clearing House or another intermediary licensed or registered for dealing in securities as defined in the Ordinance as collateral for the discharge and satisfaction of FSL's the Company’s settlement obligations and liabilities; and/or and/or (c) apply such Charged Securities securities collateral pursuant to a securities borrowing and lending agreement as defined in the Ordinance, without notice to the Customer, pursuant to Section 7 of the Securities and Futures (Client Securities) Rules under the Ordinance. 7.2 27.2 The Customer acknowledges that any consideration payable by or to the Customer for the borrowing, lending or deposit of such Charged Securities securities collateral under this standing authority is to be set by separate treaty. 7.3 27.3 In consideration of FSL the Company agreeing to act in accordance with this Clause 727, the Customer undertakes to keep FSL the Company indemnified at all times against and to hold FSL the Company harmless from all actions, proceedings, claims, damages, costs and expenses which may be brought against FSL the Company or suffered or incurred by FSL the Company and which shall have arisen either directly or indirectly from FSL the Company so acting. 7.4 27.4 The standing authority given by the Customer under this Clause 7 27 is revocable by one (1) month's ’s prior notice in writing served on FSL to the Company by registered mail AND upon full settlement of the Customer's ’s indebtedness to FSLthe Company. 7.5 27.5 Until proper revocation of the standing authority under this Clause 727, FSL the Company shall remain responsible to the Customer for such Charged Securities securities collateral borrowed, loaned or deposited under this standing authority. 7.6 27.6 The Customer further agrees that the standing authority given by the Customer under this Clause 7 27 shall be automatically renewed for a further 12-month period if a written notice has been given to the Customer by FSL the Company at least fourteen (14) days prior to its expiry and the Customer does not object to the renewal before its expiry. Such automatic renewal shall be confirmed in writing by FSL the Company to the Customer within one (1) week from the date of expiry of the standing authority. In respect of Professional Investors, the standing authority may be renewed for any duration. 7.7 27.7 The Customer understands that such Charged Securities securities collateral may be subject to liens of third parties and return of such Charged Securities securities collateral to the Customer may be subject to satisfaction of such liens. Unless otherwise defined, terms and references defined or construed in Section I of these Terms and Conditions shall have the same meaning and construction when used in this Section III. The Customer understands, acknowledges and accepts that:- 1. Risk of Securities Trading The price of securities can and does fluctuate, sometimes dramatically, and any individual security may experience upward and downward movements, and may under some circumstances become valueless. The Customer appreciates that it is as likely that losses may be incurred rather than profit made as a result of buying and selling securities. 2. Risk of Leaving Securities with FSL There may be risks in leaving securities in FSL's safekeeping. For example, if FSL is holding the Customer's securities and FSL becomes insolvent, the Customer may experience significant delay in recovering the securities. This is a risk that the Customer is prepared to accept. 3. Risk of Providing An Authority to Hold Mail or to Direct Mail to Third Parties If the Customer provides FSL with an authority to hold mail or to direct mail to third parties, it is important for the Customer to promptly collect in person all contract notes and statements of the account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion. 4. Risks of Client Assets Received or Held Outside Hong Kong The Customer's assets received or held by FSL outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Ordinance and the rules made thereunder. Consequently, such assets may not enjoy the same protection as that conferred on the Customer's assets received or held in Hong Kong. 5. Risk of Trading Growth Enterprise Market ("GEM") Stocks GEM stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid. The Customer should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Current information on GEM stocks may only be found on the internet website operated by the SEHK. GEM companies are usually not required to issue paid announcements in gazette newspapers. The Customer should seek independent professional advice if the Customer is uncertain of or has not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.