Question1: How do I exercise the 7 days cancellation for initial subscription? Answer: Please note that 7 days cancellation can only be exercised for initial subscription.
Note that the right to cancel is not available if you are making additional investments in a unit trust that you already own. It does not apply to investors who purchase recognised funds or funds listed on the Singapore Exchange.
The cancellation request must be submitted online within 7 calendar days from the date of the purchase agreement. The relevant day for determining whether the cancellation was done within the cancellation period will be the date on which such request is submitted online.
Upon successful login to your finatiQ account, at the left navigation bar, click "Unit Trust", select "UT Portfolio" and click "7 Days Cancellation". Read the "UT Terms & Conditions" and complete the necessary fields. If finatiQ receives a completed online cancellation of unit trust instruction before 2 p.m., the application will be processed the same day. If the instruction is received after 2 p.m., it will be processed the next business day.
Question2: How is the amount to be repaid calculated? Answer: Subject to applicable terms and conditions (please refer to Q1), when a customer has made payment for his purchase agreement and thereafter validly exercises his right to cancel, finatiQ shall, in making refund of the monies to the customer, comply with the requirements under the Code on Collective Investment Scheme in respect of payment of redemption proceeds, subject to any modification by an exemption granted to the relevant unit trust, as if the cancellation was a redemption.
In determining the amount payable to the customer, finatiQ shall be entitled to an adjustment to reflect the change in market value of the units held by the customer.
Where the market value of the units held by the customer is greater than the original amount paid by the customer, finatiQ is not obliged to pay the excess amount to the customer.
Question3: What are the charges incurred for excercising the 7 days cancellation option? Answer:
finatiQ is entitled to charge S$30 for out-of-pocket expenses incurred from the original purchase and subsequent cancellation of units. The amount will be deducted from the cash investment account of customer.
Where the customer exercises his right to cancel, any sales charge or front-end load fee imposed by finatiQ shall not be chargeable to the customer.
Question5: Can I sell/redeem or switch within the 7-days cancellation period? Answer: (I) During the cancellation period, you may choose to redeem your units instead of exercising your right to cancel. In this case, the redemption procedures as stated in the prospectus of the unit trust will apply. You need to acknowledge and agree to the following:-
- (a) You will not be able to enjoy the benefits of cancellation in the event that you choose to redeem your units (i.e., no refund of initial sales charge will be given) and that the redemption proceeds that you will receive may be lower than the amount being refunded had you exercised your cancellation right if the appreciation in the value of the units in the unit trust is less than the initial sales charge; and
- (b) the published prices are indicative in nature and can change during the period between the submission and processing of the redemption request.
(II) Where the purchase agreement permits you to switch your units to another unit trust during the cancellation period applicable to such purchase agreement, finatiQ may also give you the right to cancel units in the other unit trust. Before any switch of units is made pursuant to the purchase agreement in respect of the original unit trust, finatiQ shall inform you in writing:-
- (a) that you shall not receive any refund of initial sales charge in relation to the purchase agreement in respect of the original unit trust;
- (b) that is not certain whether you would be in a better or worse position if he switches unit trusts;
- (c) of any charge or fee invloved in switching from the original unit trust to the other unit trust; and
- (d) whether you shall be entitled to the right to cancel the units in the other unit trust.
Question6: Are there any additional terms & conditions that I should be aware of? Answer: These terms and conditions shall be in addition to any other terms that may be imposed by the respective fund managers of the unit trusts. In the event of any conflict or inconsistency between these terms and conditions and the terms imposed by the respective fund managers, the terms imposed by the respective fund managers shall prevail.
Question7: How will I know whether my cancellation (within the 7-days cancellation period) is successful? Answer: You will receive an email from finatiQ, informing you if the cancellation has been successful or otherwise.
Annex 1
Example Bid/Offer Transaction (Cash) - Net Comm
Transaction Details:
Amount Invested
$10,000.00
Normal Front-End Load (FEL) - 5%
finatiQ's discount - 2.5%
Price on subscription date:
Offer
Bid
$0.77
$0.73
Units issued
13,320.01
10,000/
[0.77 x (1-0.025)]
Fund Capital (FC)
$9,750.00
FEL
$250.00
Scenario 1: Price Increase
Price on cancellation date:
Offer
Bid
$0.78
$0.74
Market Value:
Fund Capital (FC)
$9,856.80
($0.74 x 13,320.01)
FEL
$ 250.00
FC + FEL
$10,106.80
Cancellation Proceeds = Amount Invested
Upon trade settlement
Refund to investor
$10,000.00
Scenario 2: Price Decrease
Price on cancellation date:
Offer
Bid
$0.76
$0.72
Market Value:
FC
$9,590.41
($0.72 x 13,320.01)
FEL
$250.00
FC + FEL
$9,840.41
Cancellation Proceeds = Market Value
Upon trade settlement
Refund to investor
$9,840.41
Annex 2
Example of NAV Transaction (Non Cash - Gross Comm)
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