RISK DISCLOSURE

Risk Disclosure & Statement of Compliance

All financial products carry a certain degree of risk and even low risk investment strategies contain an element of uncertainty. Different instruments involve different levels of exposure to risk and in deciding whether to trade in such instruments or become involved in any financial products you should be aware of the guidance set out below.  You should always consider whether such investments are suitable for you based on your financial resources. You should be aware of the following points:

1. The risk disclaimer is meant to inform clients of the potential financial risks of engaging in Precious Metals or Foreign Exchange trading. The transaction of such financial instruments as Precious Metals, Foreign Currency, FOREX, FX, and currency are dealt on a valued basis known as spot or forward and can contain a very substantial degree of risk and may not be suitable for all investors. Clients should delicately consider his/her investment objectives, level of experience, and risk appetite before deciding to undertake such transactions with The London Group. The high degree of leverage can both work in your favor or against. Before committing to invest in such markets one should seek professional financial investment advice and carefully evaluate whether his/her financial situation is appropriate. By signing below Clients acknowledge he/she has received, read, and completely understands the economic, as well as legal risk involved and confirms their financial situation is considered suited for the aforementioned investment and as such, is willing to assume the possibility of said risk. 

2. Trading Foreign Exchange and Spot Metals can result in considerable or even complete loss of funds, or worse, sometimes losses could exceed Margin or initial deposit amounts. These markets are not ideal for retirement funds, nor should the Clients lifestyle be at risk if the sudden, unexpected loss of their entire account balance should occur. If seeking advice, customers are responsible for providing accurate information about their financial status, goals, and risk tolerance to ensure that appropriate recommendations are provided. Customers should promptly notify their Account Executive whenever there are significant changes to their portfolio objectives, risk tolerance, income, net worth or liquidity needs. Upon signing below, the Clients represent, warrant, and agree to understanding the risks and ensures The London Group that the funds used to invest in these markets are not necessary for their survival or wellbeing and that his/her financial existence will not be jeopardized by risking any portion of invested funds. 

3. The price or value of an investment will depend on fluctuations in the financial markets outside of anyone’s control. Past performance does not guarantee future results. Predictions regarding the future value of precious metals cannot be made with certainty. The London Group cannot guarantee, assure, or promise future market movement, prices or profits. The nature and extent of investment risks varies between countries and from investment to investment. Any financial investment transaction is exposed to risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Moreover, the leveraged nature of financial investment trading means that any market movement will have an equally proportional effect on the deposited funds. There is no assurance that commodities, i.e. precious metals, will achieve their objectives. Return and principal value will fluctuate and your portfolio, when redeemed, may be worth more or less than the original cost. No statement, presentation, article, or any other communication available in this material is to be construed as a recommendation to purchase or sell a security or service, or to provide investment, legal, accounting or tax advice. Customers should carefully read sales literature prospectuses, and/or other offering documents, when available, before making purchases. They should carefully consider all risks and/or considerations contained in the documents. Customers should make certain that they understand the correlation between risk and return.

4. The London Group is a seller and purchaser of precious metals, foreign currencies, and related products (“Products”). The London Group is not an exchange, a brokerage firm or financial adviser and does not provide any investment, tax, or legal advice with respect to the suitability of the Products. The London Group representatives are not licensed financial advisers and no fiduciary relationship is formed between The London Group representatives and their customers. The London group representatives are commissioned salespersons whose commissions are in part based on the amount and type of metal they sell, with numismatic, semi-numismatic and premium items carrying higher commissions and profit margins. The London group representatives are not authorized to offer or provide any investment, tax, or legal advice concerning the Products. Anyone interested in including precious metals as part of their Investment Portfolio account should consult with a qualified tax professional concerning tax consequences if any before proceeding with the investment.  The decision of whether to purchase or sell precious metals should be made by the individual buyer after independent research and analysis of the individual’s financial needs and circumstances and after obtaining independent financial or tax advice. 

5. Precious metals do not yield income. Precious metals should be considered a long-term investment and buyers should be prepared and willing to hold the Products for at least three to five years, in order to maximize potential gains. Therefore individuals should not tie up capital in precious metals unless they can hold the metals for this time period. Moreover, precious metals are not a suitable investment for anyone seeking current income. 

6. Client acknowledges that in Precious Metals or Foreign Exchange Trading (FX), banks and/or brokers act as principal in the transaction and that they include their anticipated profit (spread between "bid" and "asked") and often a transaction charge is included in the prices they quote for such trading contracts which is not passed on to customer. The London Group is a Performance Fee based brokerage and is NOT an Advisor OR a Fiduciary to Client and Client agrees that The London Group has no Fiduciary duty or liability in connection with and is not responsible for any liabilities, claims, damages, costs, and/or expense, including Attorney’s fees incurred in connection with Client following any trading recommendations of The London Group or the (not)taking of any action based on the recommendations or information provided by The London Group. All transactions involving the movement of funds, either in or out of customers account, are subject to wire transfer fees. These fees are established and governed by customers financial institution, any questions regarding said fees should be directed to the banking institution which houses customers day to day financial assets.

7. The statements contained in this brochure are for informational purposes only and should not be construed as investment advice concerning the suitability of any specific form of investment. Any performance data contained in the brochure are based on past performance only and is neither a prediction nor a guarantee of future performance or results. No warranty or guarantee is being made concerning the accuracy of the information contained in this brochure which may have changed in light of any recent changes in financial data or events. This brochure is general in nature and not tailored to the specific goals of any individual. It is up to you to educate yourself, consider all risks relating to your purchase, and seek financial advice, if needed. Even though The London Group and it’s representatives are precious metals pecialists, we are not licensed financial advisors, and do not give financial advice. 

This brief statement cannot disclose ALL risks of investments in Foreign Exchange and/or Spot Metals trading. You should diligently consider such an investment before you commit funds to your trading account and should consult with a Financial Advisor that has knowledge of the Foreign Exchange and/or Spot Metals markets.