What is a Dual Currency Structured Investment DCI?
This is a complex product that can provide a higher return at maturity compared to deposit rates.
In exchange for the possibility of a higher return, the Client undertakes and agrees to receive the invested capital converted into the conversion currency specified in the individual contract on the Dual Currency Structured Investment DCI (hereinafter the “Contract”), at a predetermined exchange rate - rather than in the initial currency - provided that the conversion condition specified in the Contract is met.
A detailed description of the Dual Currency Structured Investment DCI is included in the product information sheet.
Benefits and risks
Product benefits
- By agreeing to the possible conversion of the Capital, the Client may realise a higher return than the deposit rate in a favourable market environment.
- The Dual Currency Structured Investment DCI is offered by the Bank in two product versions -a standard product version and an individually priced product version - to Clients who have concluded a Global Markets Framework Agreement or a Private Banking Master Agreement.
- As the transaction can also be concluded for a Long-Term Investment Account, it is possible for retail clients to achieve a more favourable income than the standard tax rate or tax-free income, subject to certain conditions.
Product risks
- If a Conversion Event occurs, the Client may suffer a capital loss.
- If the invested capital is converted, it will always be at a less favourable exchange rate than the market rate prevailing at maturity.
- It poses a liquidity risk that the Dual Currency Structured Investment DCI cannot be cancelled during the term, therefore the Client cannot dispose of his or her investment, either in part or in whole, until maturity.
- For the Client subject to the Personal Income Tax Act (PIT Act), the product is a controlled capital market transaction, for which no tax deduction or assessment will be made by the Bank as the payer, and the individual will have to self-assess it in his or her tax return for the relevant tax year.
Examples for dual currency structured investments
A detailed description of the Dual Currency Structured Investment DCI is included in the product information sheet.
Do you have any questions?
Please call your advisor for the details!
Are you not our client yet?
Please enter your details and our advisor will contact you at a time that suits you to answer your questions.
I request a recall
Please provide your details, and our colleagues will shortly call you to answer your questions.
Please expect our colleagues to call you on weekdays between 8 a.m. and 6 p.m.