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Product Group Classification
When providing investment services to its clients, SEB banka evaluates if the particular service or financial instrument is appropriate for the client. SEB banka has classified financial instruments into five Product Groups in order to facilitate this process.
This classification is based on the nature and complexity of the financial instruments and the risks that are inherent in them. These factors are the lowest in Product Group 1, and the highest in Product Group 5.
If SEB banka has determined that a product or investment service us appropriate for the client based on information client has provided, SEB banka will also deem that all financial instruments and products classified within the same Product Group as being equally appropriate for the client. SEB banka will also consider financial instruments in lower Product Group appropriate for the client. When SEB banka deems financial instruments or products as appropriate for you in this way SEB banka is not advising you to buy or sell the financial instrument or product.
The financial instruments in this PG1, under normal circumstances, generally carry a low risk of loss associated with investments, provided that the financial instrument is denominated in the client's home currency and is kept until maturity.
The financial instruments in PG2 carry a risk that you may lose part of your investment. These investments are also denominated in a major currency.
The financial instruments in PG3 carry a risk that you may lose a significant part of your investment, These investments are also denominated in a major currency, but are more complex financial instruments and may therefore be harder to understand.
The financial instruments in PG4 carry a risk that you may lose all of the capital that you invest in products in this group. Financial instruments in this group are more complex again and may therefore be harder to understand than products in Product Groups 1 to 3. The financial instruments may be denominated in any freely traded convertible currency. This group includes instruments and products which would otherwise be included in Product Groups 1 to 3 if they were denominated in a major currency.
The financial instruments in PG5 are the most risky investments, in which you could lose more than your initial investment. These products are considerably more complex than most others and should only be considered by investors with significant experience.
