Common use of Suitability and Appropriateness Clause in Contracts

Suitability and Appropriateness. 1. As EBH provides execution-only services to the Client in relation to complex financial products, the Company is required to assess whether it is appropriate for the Client to deal in complex financial products by requesting certain information, relating to his experience and knowledge of trading such products, that will help EBH assess whether the Client understands the risks associated with deal- ing in them. EBH will ask the Client for this information during the account opening and verification procedure, but EBH may request the Client to provide additional information in future, if the Client decides to deal in a new product type or sector. 2. If EBH considers trading with a particular complex financial product is not appropriate for the Client, based on the information the Client supplied to the Company, EBH will warn the Client of this. If, de- spite the warning, the Client performs additional operations under this Agreement following the date of the warning, it will be assumed that the Client is informed, has accepted the warning and continues to trade anyway. 3. If the Client provides EBH with incomplete information about his trading experience, EBH will warn the Client that EBH cannot correctly determine whether the services and products subject to this Agreement are appropriate for him. If, despite the warning, the Client performs additional operations under this Agreement following the date of the warning, it will be assumed that the Client is informed, has accepted the warning and continues to trade anyway. 4. Even where EBH carried out an appropriateness assessment, the Client may in any event wish to get independent advice from an authorised investment adviser, if he has any doubts about dealing in Complex Products.