Montague Pitman Stockbrokers

All equity investments involve a degree of risk. Investments in smaller companies, in particular 'Penny Shares' and investments that are not readily realisable (INRR) e.g. small unquoted companies, involve a high risk that all or part of your investment may be lost. You may also have difficulty selling 'Penny Shares' and INRR at a reasonable price and in some circumstances you may not be able to sell at any price. There is a big difference between the buying and selling prices of these types of companies and the prices can move up or down quickly. Past performance should not be used as an indication of future performance.

Spreadbets and CFDs are leveraged products and carry a high degree of risk to your capital, which means that you can lose more than your initial investment.

Penny Shares, INRR, Spreadbets and CFDs are not suitable for all investors, therefore if you have any doubts, you should consult an independent financial advisor.

Tax treatment depends on your individual circumstance and may be subject to change in future. We cannot advise you on tax so if in doubt you should seek your own independent advice.

Risk Categorisation

When we give advice to you we are required to ensure it is suitable to your individual circumstances and objectives. However, as we are not providing a portfolio management service and any advice given will be company specific we feel it is important to explain how we look at risk and categorise ‘risk’ when dealing in financial instruments to ensure both you and Montague Pitman have the same understanding. Below we explain the type of risk that applies to each asset class. Please note the information contained below is provided as general guidance only rather than specific advice but nevertheless we feel it is worthwhile detailing our views to try and help you stay on top of your investments.

Risk Categories

We set out below the main quoted asset classes that would normally comprise the majority of a diversified investment portfolio. The balance between such classes would depend on the individual’s circumstances and requirements. We have provided our interpretation of each of the classes’ risk profiles with 1 being the lowest and 6 the highest. Please note we will only provide advice on securities for numbers 3 to 6 of this table.

Our Guidance

It is important for us to ensure we only recommend securities to you which meet your objectives and are within your appetite for risk - particularly where we may recommend higher risk stocks. Using the table below (which indicates the approximate level of higher risk securities we would consider appropriate for each category) please complete the Investment Information section of our Authorisation Form. For example should a client have a medium risk outlook we recommend no more than 10% of their liquid and investment assets are held in high risk investments.

Based on the information that you provide to us, we will endeavour to monitor your overall exposure to high risk stocks by making sure you are aware when making high-risk investments and requesting your written acknowledgement if you decide to exceed our guidelines. We will monitor your exposure to higher risk investments using the information you have provided to us together with any transaction undertaken on your behalf. However, the monitoring aspect of our service will only be accurate if you always keep us up to date with your investment assets and of course alert us to any other high risk investments that you may hold.

Please ensure you notify us of any changes to your financial position.

Low Risk Profile

Zero exposure to high risk investments.

Medium Risk Profile

The possibility of some exposure to high-risk although generally no more than 10% of liquid and investment assets.

High Risk Profile

Probability that more than 10% but less than 25% of your investment and liquid assets will be held in high risk assets.