These Terms and Conditions, its Schedules and application form(s) submitted by you (including any terms and conditions or disclaimers thereto) (read and construed together collectively as forming this “Agreement”) shall constitute the legal agreement between us. In Singapore, the Services are provided to you by Endow.us Pte. Ltd. (Company No. 201708816N) (“Endowus”).
These Terms and Conditions consist of General Terms applicable to Endowus’ entire relationship with you, which are supplemented by Special Terms in respect of specific investment services. In the event of any conflict or inconsistency between any provisions of the General Terms and the Special Terms, the Special Terms shall prevail in respect of the matters contained therein to the extent of such conflict or inconsistency.
To the extent that you do not make use of Endowus to provide a particular service, the Special Terms relevant to such service will not apply to our relationship with you. We may issue you with additional Special Terms as applicable to the services we provide to you. We may require your express consent to certain of the investment and other services we are able to provide to you.
By electronically accepting or acknowledging this Agreement, using our Services or signing up for an Account with Endowus, you represent and undertake, and are deemed to have read, accepted and agreed to the terms of this Agreement.
1.1. This Schedule shall apply to you if you receive Services from Endowus Singapore.
For the purposes of this Schedule 1, the words and expressions used herein shall have the following meaning:
“Accredited Investor” has the meaning ascribed to it in section 4A of the Securities and Futures Act 2001 of Singapore read with the Securities andFutures (Classes of Investors) Regulations 2018, as may be amended from time to time, and as set out in the Accredited Investor Declaration Form;
“CPF” means the Central Provident Fund;
“FAA” means the Financial Advisers Act 2001 of Singapore; and
“Unlisted SIPs” has the meaning ascribed in paragraph 7.1 of this Schedule.
3. Representations and Warranties
3.1. In addition to the representations and warranties provided by you pursuant to paragraph 3 of the General Terms, you represent and warrant that (where you elect to invest your CPF savings), that you have sufficient monies in your CPF Account which have been allocated to the CPF Investment Scheme, you meet the requirements for investing in CPF Investment Scheme and comply with applicable CPF rules, regulations and requirements.
4.1. Without prejudice to the termination events set out in paragraph 16.1 of the General Terms, the following events may additionally apply for the purposes of paragraph 16.1 of the General Terms in respect of your Account or the provision of any Services:
4.1.1. the Investments no longer meet the applicable CPF rules, regulations and requirements (including the admission criteria) in order to remain in the CPF Investment Scheme or are no longer offered by CPF Investment for any other reason whatsoever, where applicable; or
4.1.2. your CPF funds or monies are not adequate for investment in the CPF Investment Scheme, where applicable.
5. Risk Disclosure Statement
5.1. For the purposes of paragraph 9.1 of the General Terms, the Risk Disclosure Statement set out in the Annex to this Schedule 1 shall apply to you.
6. Accredited Investor Status
6.1. Where you are an Accredited Investor, you agree and acknowledge that Endowus is not be required to, carry out CKA or the Needs Analysis and paragraphs 2 and 3 of Section A of the Special Terms will not apply to you. You will be regarded as having the relevant knowledge and experience to assess the suitability of our recommendation and Endowus may, but shall not be required to provide a reasonable basis for its recommendations. You will accept full responsibility for assessing and determining whether any recommendations are suitable and appropriate for you.
7. Investment Portfolio Recommendations
7.1. Our Investment Portfolios may include investment products which are considered to be Specified Investment Products (as defined in the MAS Notice FAA-N16 on Recommendations onInvestment Products) that are neither approved in-principle for listing and quotation on, listed for quotation nor quoted on an organized market unlisted SIP. Where your Investment Portfolio includes an unlisted SIP, we are required to consider whether you have the relevant educational qualifications, investment experience and work experience for investing in an unlisted SIP (the "CKA Assessment"). Following a review of the information you have provided (or lack thereof), where we have assessed that you do NOT have the relevant knowledge or experience in an unlisted SIP pursuant to the CKA Assessment, we will inform you in writing of the outcome of the CKA Assessment. Should you wish to transact in the unlisted SIPs despite having been determined not to possess the relevant knowledge or experience, we may, in our absolute discretion, allow you to proceed, provided that you have taken additional actions including the Unit Trusts and Investment Linked Products Module on the designated e-learning platform as required. This is also subject to you providing certain written confirmations to us and approval from the senior management of Endowus having been obtained in accordance with Applicable Laws and/or Endowus' internal policies and such other requirements as my be applicable from time to time.
7.2. Where you have been determined to have the relevant knowledge or experience, and Endowus has included unlisted SIPs in your Recommended Investment Portfolio, you hereby confirm and acknowledge that Endowus has advised you on such unlisted SIPs. You are advised to take note of the relevant information on the unlisted SIPs. However, if you choose to increase your investments in unlisted SIPs, invest in unlisted SIPs not included in your Recommended Investment Portfolio, or you otherwise choose the FundSmart Portfolio option, you hereby acknowledge and confirm that:
7.2.1. you do not wish to receive any advice from Endowus concerning the unlisted SIPs
7.2.2. you understand it is your responsibility to ensure suitability of the unlisted SIP and
7.2.3. you understand that in doing so, you will not be able to rely on Section 36 of the FAA to file a civil claim and allege that you have suffered a loss. You are still advised to take note of the relevant information on the unlisted SIPs even if you choose not to receive any advice from Endowus concerning such unlisted SIPs.
7.3. Where Endowus refreshes its CKA Assessment on clients on a periodic basis. If you fail to provide Endowus with the required information for its CKA Assessment review on a timely basis, Endowus may need to cease any Transactions in unlisted SIPs in yourInvestment Portfolio and in such a case, you accept full risk and liability for any Losses that maybe incurred as a result. If you have (i) passed the CKA Assessment on onboarding or (ii) have completed six (6) transactions involving unlisted SIPs in the last three (3) years and have as a result been considered to have passed the CKA Assessment, and you have been notified that yourCKA Assessment status has expired, you may reach out to Endowus at email@example.com with the relevant documentation to have it renewed
Endowus holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore (“MAS”).
We are authorised to provide the following financial advisory services:
(i) Advising on Investment Products – Collective Investment Schemes
(ii) Issuing or Promulgating Analyses/Reports on Investment Products – Collective Investment Schemes
(iii) Fund Management
(iv) Dealing in Capital Markets Products – Collective Investment Schemes
Financial Adviser Representatives have been appointed by Endowus to provide financial advice. An updated list of our appointed Financial Adviser Representatives may be found at https://endowus.com/support/900001022966-who-are-the-mas-appointed-representatives-for-endow.us-pte-ltd. All Representatives have a Representative ID and have their names listed on the MAS’ Public Register of Representatives. Please refer to the regulatory profile for information about our Representatives.
The types of financial advisory services allowed by the Representatives:
(i) Advising on Investment Products (Collective investment schemes)
(ii) Issuing or Promulgating Analyses/Reports on Investment Products (Collective investment schemes)
For any complaint, dispute or controversy regarding any alleged contravention of business conduct requirements or unfair practice in relation to Endowus’ financial advisory service, please send an email to firstname.lastname@example.org with the following details.
• Full name;
• Contact information (both telephone and email address);
• Whether you are an existing client;
• Description of the complaint and all relevant supporting information; and
• Name of Endow.us Pte Ltd staff involved if relevant.
All complaints received will be acknowledged within 2 business days after the date of receipt of the complaint by us. A complaint received on any day other than a business day, or after the close of business on a business day, will be treated as having been received on the next business day.
All such complaints will be independently reviewed and assessed by Endowus’ Risk & Compliance team. For the purposes of our investigation into your complaint, we may request to speak with you or require further information from you. We will keep you informed of the status of the handling of the complaint.
We will aim to complete the review within 20 business days after the date on which the complaint is received by us, and a written response will be given setting out our final response to the complaint. However, if we are unable to complete the review within the stated timeframe, we will inform you of the delay and provide an indicative reasonable timeframe within which you may expect to receive our final response to the complaint.
If you are not satisfied with the handling of your complaint, dispute or controversy, you may, if appropriate, refer the matter to the Financial Industry Disputes Resolution Centre Ltd (“FIDReC”) at 36 Robinson Road, #15-01, Singapore 068877 or the courts of Singapore. As a financial adviser regulated by MAS, we subscribe to FIDReC. Further information about FIDReC may be obtained from its online website at www.fidrec.com.sg.
For the avoidance of doubt, other complaints will be handled in accordance with the procedure as set out in paragraph 15 of the General Terms.
The objective of this Risk Disclosure Statement is to explain to you briefly the nature and risks of the Investments that you may undertake with us. In particular, you must be aware that the risk of loss in any Investment or Transaction can be substantial.
You are fully aware of the risk relating to Transactions entered into. In particular, you understand that:
(1) Your Investments are not bank deposits and are not obligations of, or guaranteed by Endowus or any of its affiliates and are subject to all investment risks and possible loss of the principal amount invested by you. You may therefore lose your entire capital by entering into the Transactions. Past performance of the same or of similar investments is not an indication of, nor a guarantee of future performance of your Investment; and
(2) No Investment can be 100% profitable. As a general guide, you should only invest if you fully understand the Investments and the risks associated with them.
Before entering into any Investment or Transaction, you should ensure that you understand fully:
(a) the nature and fundamentals of each Investment or Transaction and the market in which such Investment or Transaction (where applicable) is traded in;
(b) the legal terms and conditions and all of your rights and obligations for each Investment or Transaction, including:
(c) the legal risks surrounding the Investment or Transaction, including the circumstances under which the Investment or Transaction may be illegal, resulting in it being void and unenforceable;
(d) the extent of the economic and associated risks to which you are exposed to as a result of such Investment or Transaction (and to determine that such risk is suitable for you in light of your own specific experience in relation to that specific Investment or Transaction and your financial objectives, circumstances and resources);
(e) the regulatory and tax treatment of the Investment or Transaction; and
(f) the nature and scope of the relationship between yourself and Endowus in respect of each Investment or Transaction undertaken by you.
You should always ensure that you have in place proper and sufficient means of monitoring the various types of risks associated with any Investment or Transaction. Endowus will not be undertaking such monitoring for you in any circumstance whatsoever.
You should be aware that Endowus is not responsible for any Losses that may be suffered by you, arising from or in connection with movement in prices or exchange rates, errors or delays in the transmission of any instruction from or to you or changes in any Applicable Law.
You agree that any advice provided by us will be based on information from sources believed to be accurate, however no representation or warranty, express or implied is made by us as to the accuracy, completeness or suitability of such advice.
You agree that you are solely responsible for making your own independent investigation and appraisal of any advice, recommendations, view, opinion or information provided by us. You shall fully understand and familiarise yourself with all the terms and conditions of each Investment and the risks involved, and agree that you will only accept our Recommended Investment Portfolio and Transactions on the basis of your own independent review and determination that the Recommended Investment Portfolio and/or Investments are suitable and appropriate for you, taking into account your specific objectives, financial situation, investment experience, knowledge and particular needs.
You agree and acknowledge that you have made all necessary enquiries and we have informed you of all material features of and risks involved in respect of the Investments including but not limited to information on:
(a) the nature and objective of the Investments;
(b) the key benefits and risks of the Investments;
(c) details of the providers of the Investments;
(d) your key rights with respect to the Investments;
(e) the intended investment horizon of the Investments;
(f) the ease of converting the Investments to cash;
(g) the expected level of your risk tolerance in respect of the Investments;
(h) the commitment required from you in respect of the Investments;
(i) the pricing of the Investments;
(j) the fees and charges to be borne by you in respect of the Investments;
(k) the frequency of reports to be provided to you in respect of the Investments;
(l) any applicable charges or restrictions on withdrawal, surrender or claim procedures of the Investments;
(m) any applicable warnings, exclusions and disclaimers; and
(n) information in relation to where the prospectus in respect of the Investment (if applicable) may be accessed, or if we consider it appropriate, an abridged version of such prospectus.
We use proprietary algorithms in the portfolio building process including but not limited to portfolio optimization, portfolio rebalancing and portfolio return simulations. Many of the algorithms are based on academic research based primarily on the Nobel Prize-winning Modern Portfolio Theory. The underlying inputs and assumptions are based on external information. We do not guarantee the accuracy or reliability of such information.
You understand the limitations of advice provided by a digital advisor, including the fact that the recommendation may not take into consideration your financial circumstances, existing investment portfolios or the affordability of the investment. We have the right to override the automated algorithm or temporarily halt the digital advisory service in extreme market conditions.
We also retain the right to make material adjustments to the algorithms in the future as it deems necessary. However, any asset allocation changes to your portfolio will require your prior consent.
Markets tend to move in cycles, with periods of rising prices and periods of declining prices. The market value of portfolio assets may fluctuate and result in economic gains and/or losses.
The Investments transacted in by Endowus may include those listed and transacted on exchanges at market prices. Although it is expected that the market price of such Investments will typically approximate its net asset value, it is possible that there may be periods where the market price may deviate from its net asset value.
You should also be aware that there is a general risk of market failure or collapse which may arise from any political or financial development or any unpredictable event that may immediately result in sharp price movements, volatile market conditions and strained market liquidity.
Under certain market conditions, it may be difficult or impossible to liquidate a position, to assess a fair price or assess risk exposure. This can happen, for example, where there is simply no market traders for such Investment or Transaction, where there is a failure in electronic or telecommunications systems or where there is the occurrence of a Force Majeure Event (which includes any form of restriction, moratorium or suspension on trading imposed by an Exchange, market or other authority regulating trading in the Investments or Transactions). Such events will increase the risk of loss to you.
You expressly acknowledge that you have the appetite to assume all economic consequences and risks of the Investments and to the extent necessary, have consulted your own tax, legal and other advisers.
You also acknowledge that we may have an interest in the subject of the report or recommendation, and we may be a counterparty to any Investments entered into by you and/or may otherwise benefit from your Investments.
You also acknowledge that Losses might be incurred due to inaccurate or incomplete information of the Investment Product provided by any Affiliates.
Where the Investments are listed outside Singapore, such Investments are subject to the laws and regulations of the jurisdiction they are listed and you are aware of the risks involved with investing in such products, including but not limited to differences in regulatory regime and investor protection, differences in legal systems, jurisdiction-specific costs (including tax related costs), exposure to foreign counterparty and correspondent broker risks, and exposure to the political, economic and social developments in the applicable jurisdiction. You acknowledge receipt of the Risk Warning Statement on the next page and understand its contents.
Your payments or receipts under a Transaction will be linked to changes in the particular financial market or markets to which the Transaction is linked, and you will be exposed to price, currency exchange, interest rate or other volatility in that market or markets. You may sustain substantial losses on the Investment if the market conditions move against your positions. It is in your interest to fully understand the impact of market movements, in particular the extent of profit/loss you would be exposed to when there is an upward or downward movement in the relevant rates, and the extent of loss if you have to liquidate a position if market conditions move against you. Your position may be liquidated at a loss, and you will be liable for any resulting deficit in your Account with us.
The Assets in your portfolio with us may be denominated in different currencies and may not necessarily be in Singapore Dollar at all times. Portfolio assets are therefore subject to foreign exchange risk. The fluctuations in foreign currency rates have an impact on the profit/loss and the Investment where your portfolio (or any part thereof) or any Transaction is denominated or settled in a different currency from the currency where you carry on your ordinary business or keep your accounts.
Your holdings with us are held under custody accounts with us or our nominee, who will be a licensed custodian or an approved trustee for collective investment schemes under the Securities and Futures Act 2001. If we or our nominee becomes insolvent, you may not be able to recover your holdings.
We may pool your Investments with other customers’ investments which we believe are similar in nature or category. This is known as commingling. In this situation, your interest in the Investments may not be easily identified through documentation, but we or our nominee will maintain a record of your interest.
If your Investments are denominated in foreign currency(ies), or are listed outside Singapore in jurisdictions where we do not have operations in, we may appoint custodians or sub-custodians outside Singapore, which are licensed, registered or authorised to act as custodians in the countries/regions or territories where the account(s) are maintained. You may be exposed to additional risk as the applicable laws and regulations of the foreign jurisdiction may differ from Singapore law. This means that your Investments do not enjoy the same protection as those held in custody accounts in Singapore. A possible consequence of this is that in the event of a legal dispute in that market, the courts in that market may not recognise your Investments as belonging to you and you may not be able to recover your Investments.
(a) Overseas markets may be subject to different regulations, and may operate differently from approved exchanges in Singapore. For example, there may be different rules providing for the safekeeping of securities and monies held by custodian banks or depositories. This may affect the level of safeguards in place to ensure proper segregation and safekeeping of your investment products or monies held overseas. There is also the risk of your investment products or monies not being protected if the custodian has credit problems or fails. Overseas markets may also have different periods for clearing and settling transactions. These may affect the information available to you regarding transaction prices and the time you have to settle your trade on such overseas markets.
(b) Overseas markets may be subject to rules which may offer different investor protection as compared to Singapore. Before you start to trade, you should be fully aware of the types of redress available to you in Singapore and other relevant jurisdictions, if any.
(c) Overseas-listed investment products may not be subject to the same disclosure standards that apply to investment products listed for quotation or quoted on an approved exchange in Singapore. Where disclosure is made, differences in accounting, auditing and financial reporting standards may also affect the quality and comparability of information provided. It may also be more difficult to locate up-to- date information, and the information published may only be available in a foreign language.
(d) In some countries, legal concepts which are practiced in mature legal systems may not be in place or may have yet to be tested in courts. This would make it more difficult to predict with a degree of certainty the outcome of judicial proceedings or even the quantum of damages which may be awarded following a successful claim.
(e) The Monetary Authority of Singapore will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions will be effected.
(f) The laws of some jurisdictions may prohibit or restrict the repatriation of funds from such jurisdictions including capital, divestment proceeds, profits, dividends and interest arising from investment in such countries. Therefore, there is no guarantee that the funds you have invested and the funds arising from your investment will be capable of being remitted.
(g) Some jurisdictions may also restrict the amount or type of investment products that foreign investors may trade. This can affect the liquidity and prices of the overseas-listed investment products that you invest in.
Different costs involved
(h) There may be tax implications of investing in an overseas-listed investment product. For example, sale proceeds or the receipt of any dividends and other income may be subject to tax levies, duties or charges in the foreign country, in Singapore, or in both countries.
(i) Your investment return on foreign currency-denominated investment products will be affected by exchange rate fluctuations where there is a need to convert from the currency of denomination of the investment products to another currency, or may be affected by exchange controls.
(j) You may have to pay additional costs such as fees and broker’s commissions for transactions in overseas exchanges. In some jurisdictions, you may also have to pay a premium to trade certain listed investment products. Therefore, before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
(k) Transactions on overseas exchanges or overseas markets are generally effected by your Singapore broker through the use of foreign brokers who have trading and/or clearing rights on those exchanges. All transactions that are executed upon your instructions with such counterparties and correspondent brokers are dependent on their respective due performance of their obligations. The insolvency or default of such counterparties and correspondent brokers may lead to positions being liquidated or closed out without your consent and/or may result in difficulties in recovering your monies and assets held overseas.
(l) Overseas markets are influenced by the political, economic and social developments in the foreign jurisdiction, which may be uncertain and may increase the risk of investing in overseas-listed investment products.