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Risk Warnings

Past performance is no guarantee of future performance.

Trading in foreign currencies is not suitable for everyone and a client must ensure that they fully understand the risks involved in multi-currency loans before being accepted into the programme. The main risks are summarised below:

a) Foreign exchange movements can be sudden and substantial. Changes in the exchange rate may increase the sterling equivalent of a client's debt. The increase could be sizeable.

b) At no stage should a client expose themselves to the high risks of foreign currency borrowings if they are not able to afford the potential losses that could result from adverse currency movements and the higher interest rate servicing costs that would be required of a larger loan.

c) Holding debt in foreign currencies may not be suitable for a client. A client should consult their financial adviser if they have any doubts about their suitability or the risks involved.

d) A client's lender will not tolerate an increase in the GBP value of a client's loan above a predetermined level as a result of currency losses. The lender will agree a "Conversion Limit" with the client before a client takes out an ECU managed multi-currency loan. If the loan reaches or breaches its "Conversion Limit", the lender may exercise its right, but not its obligation, to convert the loan back into GBP. However, a loan may be converted back into GBP at a worse level than the agreed Conversion Limit. This would mean that a client's loan would increase by more than it would if it had been converted at the agreed Conversion Limit. Converting a loan back into GBP may result in a permanent increase in the GBP value of a client's loan and the associated GBP interest costs.

e) The FCA risk warning is "Your home may be repossessed if you do not keep up repayments on a mortgage".

Please note that for compliance purposes telephone calls may be recorded

Please note that the management of multi-currency loans is not a "regulated activity" as defined in the Financial Services and Markets Act 2000 and you will therefore not benefit from the protection of the Financial Conduct Authority (FCA), the Financial Ombudsman Service in the event of a complaint, or the Financial Services Compensation Scheme in the event of ECU’s default.

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