A simplified prospectus covers key information from the prospectus and should include the following information:
- The following language should be shown in conspicuous print:
- The simplified prospectus covers key information from the prospectus, and the terms used and their definitions are exactly the same as those terms in the prospectus.
- Investors' rights and obligations arising from their subscription of the ETNs are described in detail in the prospectus. Investors are advised to refer to the prospectus if they are interested in subscribing the ETNs.
- Date of publication.
- Particulars of the ETN: name, issuing securities firm, total issue amount, number of units issued, issue price, issue period, issue date, maturity date, name of the underlying index, trading market, method of redemption upon maturity, and whether proceeds are allocated.
- Description of the underlying index: Important terms and conditions of index licensing contract, how the index is compiled and calculated, the underlying index is consistent with the description under Article 2, paragraph 3 of the Regulations, how investors are notified of a material event relating to the underlying index that may have a material impact on their rights and interests when it has occurred and how information about this event is disclosed. In the event of allocation for dividends on securities comprising the price index, how proceeds from the ETNs are allocated and how the benchmark value is adjusted should be described; in the event of a Futures and Options Strategy ETN, the investment strategy and trading strategy of the index must be described.
- Calculation of the estimated benchmark value and benchmark value: method of calculation of the estimated benchmark value (intraday) and benchmark value (after hours), form of disclosure of the estimated benchmark value, and reason of the difference between the estimated benchmark value and trading price. In the event of allocation of proceeds from an ETN, how the ETN proceeds are allocated and how the benchmark value is adjusted should be described.
- Manner in which proceeds are allocated.
- Performance of the underlying index: Its past performances shall be described
- What risks investors are exposed to. In the event of a Futures and Options Strategy ETN, the impact of a change to the price of the future or option on the index yield should be described. In the event of allocation of proceeds from an ETN, the possible difference between the yield rate of the ETN and that of the underlying index should be described.
- Itemized costs to be borne by investors, and how they are calculated and charged.
- Early redemption and mandatory redemption by a securities firm, and subscription and sell-back by investors.
- Availability of prospectus: Including being available at the location of the securities firm and its business premises where its ETNs are offered for sale, and the website designated for reporting information and the securities firm's website.
- Others: Investment risk warning as specified in Article 3, subparagraph 4 and the securities firm’s service number.