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Before trading through Selftrade, you should note the following warnings, as well as reading our Terms and Conditions and Important Information Section. These risk warnings are not comprehensive and do not cover the "Selftrade CFD and Spreadbetting Service" provided by City Index Limited.

• 1.
  Buying Investments can involve risk. The value of your Investments and the income from them can go down as well as up and is not guaranteed at any time. You may lose all of your investment and also, in some circumstances, get back less than you originally invested. Information on past performance is not an indicator for future performance.
• 2.
  Our service enables you to trade in Investments via the Internet and telephone and is provided on an execution-only basis, which means we will not give you any form of investment advice or tax advice, or advise you about the merits of a particular transaction. In the provision of this service we are not required to assess the suitability for you of the securities or services provided or offered and therefore you will not benefit from the rules of the Financial Services Authority in the UK (FSA) on assessing suitability.
• 3.
  The Investments and services offered by us may not be appropriate for you. If you have any doubts as to the merits of an Investment or service, you should seek advice from an independent financial adviser who is authorised by the FSA to advise on such matters.
• 4.
  Certain Investments may be or become not readily realisable. They are Investments in which there is a restricted market and it may therefore be difficult to sell these Investments at a reasonable price and in some circumstances it may be difficult to sell them at any price or obtain reliable information about their value. You should not buy these Investments unless you have carefully thought about whether you can afford them and whether they are right for you.
• 5.
  Under certain conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange trading is suspended or restricted. A Stop Loss Order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an order at the stipulated price.
• 6.
  Where we register your Investments in the name of one our Nominees or hold them with a Sub-custodian, the Nominee or Sub-custodian will hold your Investments together with those of our other clients in a pooled account. The Investments held in a pooled account in this way cannot be distinguished by individual client. This means that if the Nominee or Sub-custodian defaults or becomes insolvent and there is a shortfall in the pooled account which cannot be reconciled, you (and our other clients) may share proportionately in that shortfall.
• 7.
  We will hold your Investments in one or more pooled accounts, therefore, you may receive dividends or other distributions net of tax which has been paid or withheld at rates that are less beneficial than those that might apply if the Investments were held in your own name or not pooled. In addition special benefits to shareholders or shareholder incentives attached to your investments may be lost.
• 8.
  We may deal for you in Investments that are or have been the subject of "stabilisation". Stabilisation enables the market price of an investment to be maintained artificially during the period when a new issue of Investments is sold to the public. Stabilisation may affect not only the price of the new issue but also the price of other Investments relating to it. The FSA allows stabilisation in order to help counter the risk that, when a new issue comes onto the market for the first time, the price can sometimes drop for a time before buyers are found. It may only take place for a limited period. There are limits on the price at which shares may be stabilised. Stabilisation is carried out by a "stabilisation manager" (normally the firm chiefly responsible for bringing a new issue to market). As long as the stabilising manager follows a strict set of rules (the Stabilisation Rules), he is entitled to buy back securities that were previously sold to investors or allotted to institutions, which have decided not to keep them. The effect of this may be to keep the price at a higher level than it would otherwise be during the period of stabilisation.
  The Stabilisation Rules:
  • limit the period when a stabilising manager may stabilise a new issue;
  • fix the price at which he may stabilise (in the case of shares and warrants but not bonds); and
  • require him to disclose that he may be stabilising but not that he is actually doing so.

  The fact that a new issue or a related security is being stabilised should not be taken as any indication of the level of interest from investors, nor of the price at which they are prepared to buy the securities.

• 9.
  There is an extra risk of losing money when purchasing Investments in some smaller companies, including penny shares. There may be a significant difference between the bid and offer price of these shares and they may not be readily realisable. If you have to sell these Investments immediately, you may get back less than you paid for them. The price may change quickly and may go down as well as up.
• 10.
  Unit trusts, like shares, are subject to a spread between the bid and offer prices, whereas OEICs are single-priced. In most cases, unit trusts and OEICs can be dealt once each Business Day, though some may be dealt less frequently, as dealing times may vary from one provider to another and from one unit trust or OEIC to another. Further details are available on the Website or can be provided on request. Unit trusts and OEICs are dealt on a forward pricing basis and, as a result, neither you nor we will know in advance the price at which an order will be executed. They are also subject to initial and annual management charges and in certain circumstances may be subject to a dilution levy. You should read a fund's prospectus and consult an independent financial adviser who is authorised by the FSA to advise on such Investments.
• 11.
  It is possible that any orders you give us to sell or purchase Investments will be effected at or around the same time as similar orders by other customers of Selftrade. Your orders could be aggregated with orders made by another Selftrade customer. We will not aggregate an order from you with any other order unless we believe it is unlikely that such aggregation will work to your disadvantage. However, the aggregation of orders could result in a less favourable price.
• 12.
  As a consequence of using our services, you may alter your personal tax position. The levels of and bases of taxation can change. Your Investments will be registered in the name of one of our Nominees or held by us with a Sub-custodian, the Nominee or Sub-custodian will hold your Investments together with those of our other clients in a pooled account. Therefore, the Investments will not distinguishable by client/beneficial owner, the type of account within which they were purchased or to which they were transferred, the country of residence of the beneficial owner, or any other factors that might have a bearing on the rate at which dividends or other distributions in relation to those Investments might be taxed. As a consequence, and because dividends and other distributions may be taxed at source, you may receive dividends or other distributions net of tax which has been paid or withheld at rates that are less beneficial than those that might otherwise be applicable were the Investments held in your own name or in allocated accounts . You should consult your own tax adviser to understand any applicable tax consequence that might arise.
• 13.
  Exchange-rate fluctuations may adversely affect the value, price or income of Investments priced in foreign currencies. Foreign markets will involve different risks to UK markets and in some cases the risks will be greater. There may be different settlement, legal and regulatory requirements to those applying in the UK. The potential for profit or loss from transactions on foreign denominated contracts will be affected by fluctuations in foreign exchange rates.
• 14.
  Settlement of transactions is undertaken via CREST, or, in the case of unit trusts and OEICs, directly with the relevant fund managers or through a third party provider. Therefore, excepting unit trusts and OEICS, our Dealing Services may only be used for Investments that can be settled via CREST. Details of the Investments are on the Website. We can confirm the availability of individual Investments on request. It is possible that changes to the Investments available may occur from time to time and the Website will be updated accordingly.
• 15.
  If we suspend our Dealing Services in accordance with section 9.3 of the Supplemental Terms and Conditions for Dealing Services you can ask us to transfer any Investments that we hold for you into your name or the names of any joint holders or to any other broker. If we terminate our Dealing Services, we will transfer any Investments that we hold for you into your name or the names of any joint holders in accordance with your instructions without charge.
• 16.
  Before you begin to trade, you should obtain details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (but, for example, as a percentage of contract value), you should establish what such charges are likely to mean in specific money terms.

• 17.
  Customers who wish to trade in "Covered Warrants" and "Other Complex Instruments" must provide information on their knowledge and experience in these products to enable an assessment to be made as to whether the product is appropriate for them. If you are interested in trading Covered Warrants or Other Complex Instruments, please complete the assessment form [Covered Warrants and Other Complex Instruments Assessment Form], which also includes a description of Covered Warrants and Other Complex Instruments, including Securitised Derivatives. This assessment form is part of our Terms and Conditions.
• 18.
  Covered Warrants and Securitised Derivatives often involve a high degree of gearing so that a relatively small movement in the price of the underlying instrument results in a disproportionately larger movement, unfavourable or favourable, in the price of the Covered Warrant or the Securitised Derivative. The prices of Covered Warrants and Securitised Derivatives can therefore be volatile.
• 19.
  You should not deal in Covered Warrants or Other Complex Instruments unless you understand their nature and the extent of your exposure to risk. This notice cannot disclose all those risks or other significant aspects. You should also be satisfied that the product is suitable for you in the light of your circumstances and financial position. Although Covered Warrants and Other Complex Instruments can be used for the management of investment risk, some of these products are unsuitable for many investors. Different instruments involve different levels of exposure to risk and in deciding whether to trade in such instruments you should be aware of the following points.
• 20.
  A Covered Warrant is a time-limited right to subscribe for shares, debentures, loan stock or government securities and is exercisable against the original issuer of the underlying securities.
• 21.
  Securitised Derivatives, may give you:
  
  • a time-limited or absolute right to acquire or sell one or more types of investment which is normally exercisable against someone other than the issuer of that investment; or
  • rights under a contract for differences, which allow the speculation on fluctuations in the value of the property of any description or an index, such as the FTSE 100 index.

  In both cases, the investment or property may be referred to as the "underlying instrument".

• 22.
  It is essential for anyone who is considering purchasing Covered Warrants to understand that the right to subscribe which a Covered Warrant confers is invariably limited in time with the consequence that is the investor fails to exercise this right within the predetermined time scale then the investment becomes worthless.
• 23.
  Securitised Derivatives have a limited life, and may (unless there is some form of guaranteed return to the amount you are investing in the product) expire worthless if the underlying instrument does not perform as expected.
• 24.
  You should not buy a Covered Warrant or a Securitised Derivative unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
• 25.
  You should consider carefully whether or not a Covered Warrant or a Securitised Derivative is suitable for you in light of your circumstances and financial position, and if in any doubt please consult an independent financial adviser who is authorised by the FSA to advise on such Investments.

• 26.
  For a description of the types of Limit Order and Stop Order, please see "Limit Orders and Stop Orders" (which forms part of our Terms and Conditions).
• 27.
  Limit Orders are designed to trigger trades when your price conditions are met or in the case of Trailing Stop Orders when the price reaches your specified margin below the peak price achieved after having placed the order. You should be aware that certain factors may cause the bid-offer spread of a security to increase, even momentarily, to an abnormally wide level, thereby causing your stop order to execute or be missed. However, these abnormal prices are the prevailing best prices for that security at that time.
• 28.
  Special risks apply to Limit Orders such as Stop Loss and Stop Buy Orders and to Trailing Stop Orders and these orders are placed entirely at your own risk. To the extent that disputes arise which are caused by matters beyond Selftrade's control, you accept sole responsibility and that Selftrade bears no responsibility for such matters.
• 29.
  You should review these orders on a regular basis in order that you are aware of your outstanding commitments and that they remain in line with your current investment objectives. We do not promise that Limit Orders or Stop Orders will be executed even if the limit price is met. This could be as a consequence of:
  
  • market conditions at the time (such as a "fast market", i.e. where the market is so volatile that prices quoted by market makers are only indicative rather than guaranteed);
  • other clients having placed similar orders, with an earlier time priority and being executed in priority to your order, or
  • other factors which are outside our control.
• 30.
  Limit Orders and Stop Orders will only be executed if:
  
  • for purchases, there are sufficient funds in your Dealing Account to meet the potential cost of execution (including dealing costs) or you are due to receive proceeds from a sale in which case those funds will be applied to this purchase, and
  • for sales, the relevant securities are held in your Dealing Account.
• 31.
  We will only execute orders in sizes that are at or below the maximum quote size offered by our retail service provider at the point of execution. If your Limit Order or Stop Order is above this size, it will not be executed automatically (even partially), even if the price is matched by the market price. Where possible, we will do our best to manually execute such orders. You are therefore advised to ensure that your order can be matched in terms of size. For further information on the monitoring times of Limit Orders and Stop Orders, please refer to the "What's Traded when" section of the Website "Limit Orders and Stop Orders" pages which both form part of our Terms and Conditions.
• 32.
  In the event of a corporate action on a security, which affects the stock price, we will endeavour to delete any open Limit Orders in that security. However, the responsibility for reviewing and, if necessary, amending or withdrawing your Limit Orders and Stop Orders in response to prevailing market conditions is yours.