IMPORTANT INFORMATION
This Product Disclosure Statement ("PDS") has been prepared and issued by SingX Australia Pty Ltd ABN 75 624 277 201 AFSL 508309 (“SingX”). This PDS has not been lodged with the Australian Securities and Investments Commission (“ASIC”) and is not required by the Corporations Act to be lodged with ASIC. ASIC takes no responsibility for the contents of this PDS.
Please note that the information contained in this Product Disclosure Statement ("PDS") does not constitute a recommendation, advice or opinion and does not take into account your individual objectives, financial situation, needs or circumstances. This is an important document and should be read in its entirety. Before entering into a Foreign Exchange Contract, you should obtain independent advice to ensure this is appropriate for your particular financial objectives, needs and circumstances. We recommend that you also obtain independent taxation and accounting advice in relation to the impact of foreign exchange gains and losses on your particular financial situation.
The taxation consequences of Foreign Exchange Contracts can be complex and will differ for each individual's financial circumstances, and your tax adviser should be consulted prior to entering into a Foreign Exchange Contract. SingX does not guarantee the investment performance of Foreign Exchange Contracts. Past performance is no indication or guarantee of future performance. All clients shall be bound by the contents of this PDS. The information in this PDS is current as at December 10, 2019, and may be updated from time to time where that information is not materially adverse to clients. Updated information shall be provided on our website https://au.singx.co . SingX may issue a supplementary or replacement PDS as a result of certain changes, which shall be available on our website or shall be distributed in electronic form as required.
This PDS does not constitute an offer or invitation in any place outside Australia where or to any person to whom it would be unlawful to make such an offer or invitation. The distribution of this PDS (electronically or otherwise) in any jurisdiction outside Australia may be restricted by law and persons who come into possession of this PDS should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable law. Please note that the foreign exchange products offered in this PDS may not be granted to or taken up by, and the foreign exchange products may not be offered or sold to, any person that is in the United States or that is, or is acting for the account or benefit of, a US person. If you received this PDS electronically, we can provide a paper copy free of charge upon request. For information regarding our full range of products and services, please read the Financial Services Guide ("FSG") and visit our website. If you have any queries regarding this PDS, please contact us.
PRODUCT DISCLOSURE STATEMENT
This PDS is an important legal document setting out information about Foreign Exchange Contracts (FX contracts) which may be entered into between you and SingX. This includes:
The information in this PDS should assist you to decide if the product meets your needs; and compare the product with similar products.
If you intend to apply to use any of the products described in this PDS, please read this PDS in full, then keep it, together with all other documentation which you receive from SingX in connection with FX contracts, for future reference. If you have any questions or need more information, please contact us at help.au@singx.co. The purpose of this PDS is to assist you in deciding whether the services offered by SingX are appropriate for you. It describes the key features of foreign exchange transactions, the benefits, risks and associated fees and charges. All financial amounts mentioned in this PDS are expressed in Australian dollars unless otherwise stated.
SingX holds an Australian Financial Services licence Number 508309 and is authorised to provide general advice, deal in, make a market for and provide financial products in noncash payment products and foreign exchange contracts to retail and wholesale clients.
SingX specializes in providing foreign currency dealing and money transmission services to clients who need to buy/sell currencies or make/receive international payments. You can contact SingX by any of the means listed below:
Mailing address: Level 4, 240 Queen Street, Brisbane, QLD 4000
Email: help.au@singx.co
Website: https://au.singx.co
Information provided to you in the FSG and this PDS is important and is binding on you. Additional legal terms governing our relationship are detailed in our Terms of Use (Please click here). As part of the online registration process you are required to agree to the SingX Terms of Use. By registering you have stated that you have read and agree to the Terms of Use. You must complete the online application form available on our website https://au.singx.co separately to this PDS, and have your account approved by SingX. SingX reserves the right to refuse to open an account for any person.
We are obliged to warn you that unless otherwise expressly agreed, we will only provide you with general advice, which does not take account of your objectives, financial situation or needs. Such advice is limited to the mechanics of the international money transfer. Therefore, you are required to ensure that you obtain prior advice regarding the suitability of our products and services for your personal financial needs, objectives and circumstances, from a licensed professional. Where we collect and take into consideration, information regarding your financial circumstances and needs, and specifically agree to provide you with personal advice, you will receive a Statement of Advice. While SingX believes the advice and information we provide is accurate and reliable, neither SingX nor its directors, officers, employees, contractors or associates assume any responsibility for the accuracy and completeness or currency of that advice and information.
PRODUCT SUMMARY TABLE
| ITEM | SUMMARY | PDS SECTION |
|---|---|---|
| Who is the issuer of this PDS and the products? | All products and services detailed in this PDS are supplied by SingX Australia Pty Ltd ABN 75 624 277 201 | AFSL 508309. | 1 |
| What is foreign exchange | A Foreign Exchange contract (“FX contract”) is a transaction that involves a contract for the exchange of one currency for another at an agreed Exchange Rate. An “exchange rate” is the price of one currency in terms of another currency. | 4 |
| Significant benefits |
| 4 |
| Significant Risks |
| 4 |
| Fees & charges | SingX charges a flat transaction fee in the range of 0.5 to 5% on every transaction. This is a separate fee, the amount of which is unrelated to the exchange rate. You must factor this fee into the cost of the transaction as well. If you are comparing rates, you should bear in mind that an attractive exchange rate may be offset by a high transaction fee (or vice versa). Although SingX aims to avoid having additional third party fees deducted from your funds in some cases it is unavoidable. This may result in an amount less than you transferred arriving at the Beneficiary Account. SingX does not either levy or receive these fees and is constantly looking for ways to enable our customers to avoid them. In some cases, SingX may also levy a FX mark-up. The mark-up may be considered to be the difference between the Interbank or Wholesale Rate and the rate we quote you. | 5 |
| How can you open a SingX account? | Prior to transacting in FX contracts, you must read and understand the FSG (Click here), this PDS and the SingX terms of use (Please click here). This can be done online or you must complete, sign and return the SingX Application and have your account approved by SingX. | 4 |
| How can you create a FX contract with SingX? | SingX accepts FX contract instructions electronically (via our web or mobile apps). SingX only allows you to exchange funds that have been cleared to an account nominated by us. You need to send us the funds you wish to exchange in advance of being able to execute a transaction. | 4 |
| How can you make payments for FX contracts? | You may transfer funds to us using internet or mobile banking. SingX only accepts bank transfers. In no circumstances does SingX accept cash deposits or ATM transfers. | 4 |
| Tax implications | Tax implications may arise from any transaction or transfer of funds you enter into with us. The taxation consequences of foreign exchange transactions can be complex and will differ for each individual’s financial circumstances. We recommend that you obtain independent taxation and accounting advice in relation to the impact of FX contracts on your particular financial situation. | 8 |
| Suspending or closing an account | SingX retains the right to suspend or cancel your Account without prior notification as set out in the Terms & Conditions. We can also refuse to facilitate the execution of any transaction. | 6 |
| Dispute Resolution | SingX has an internal dispute resolution process in place to resolve any complaints or concerns you may have, as quickly and fairly as possible in the circumstances. You should bring any complaints or concerns you have to our attention by contacting us. | 10 |
KEY FEATURES:
Foreign Exchange Transactions Offered: SingX operates an online foreign exchange portal that operates 24 hours a day, seven days a week, details of which can be obtained from our website. We facilitate the exchange of one currency for another and the transfer of the purchased currency overseas upon your request to the beneficiary you nominate. SingX is not a currency speculation service. It is designed to provide spot foreign exchange and remittance services for clients that need to send funds internationally. In all cases, you must deliver to us or our agent the full amount of the funds you are exchanging, along with the SingX fees. We simply transmit money. We do not facilitate any type of margin or leveraged foreign exchange transaction (ie: where you are able to speculate on future exchange rate movements by putting down a deposit and trading a multiple of that deposit). We do not allow you to pay us only the amount of any loss occasioned by exchange movement and in no circumstances will we pay you any profit realised as the result of an exchange rate movement
What is a Spot Foreign Exchange Contract?
The term foreign exchange contract refers to the simultaneous purchase of one currency and sale of another currency at an agreed exchange rate. Foreign exchange contracts are not exchange traded and are customised to each individual transaction. The characteristics below change for each transaction:
When you enter into any FX contract, you will be asked to nominate an amount (“Contract Amount”) and the two currencies to be exchanged. In every FX contract there are two currencies as follows: 1 fixed unit of a currency = X variable units of another currency.
The fixed currency is called the “base” currency and the variable currency is called the “terms” currency. Together, these are known as the Currency Pair. The currencies involved in any FX contract must be currencies which are acceptable to SingX. Spot FX contracts are an agreement to exchange one currency for another at an agreed rate within 2 days of the transaction being booked. Our SingX website / mobile application will provide the exchange rate available and provide you with a spot rate. Once you confirm the spot rate, you have agreed to enter into a spot contract with us and you will have 24 hours to pay the funds into our account, and once we have received these funds, we will transfer the money into the nominated beneficiary account.
An Exchange Rate is the price of one currency expressed in terms of another. For example, if the current Exchange Rate for the Australian Dollar against the Indian Rupee is AUD/INR 53.20, this means that an Australian dollar is equal to, or can be exchanged for, approximately 53.20 Indian Rupees. Foreign Exchange Rates are moving constantly and are the largest financial market in the world with trillions traded every day. The foreign currency market is an over-the-counter (“OTC”) market, which means that there is no official or benchmark exchange rate for foreign currencies. Different service providers will quote different exchange rates. If you are intending to transfer your money straight away, you will want to obtain the best available exchange rate at that time. This is often a matter of shopping around. We cannot guarantee to offer the best rate available on the day, but we endeavour to be very competitive. A “spot exchange rate” is the exchange rate which applies to an FX contract with a settlement date that occurs 2 business days after the deal date (“spot date”). FX contracts with a spot exchange rate are commonly referred to as “spot contracts”.
The Interbank Rate or Wholesale Rate is the rate at which banks and financial institutions exchange their currencies and is the base for all other exchange rates.
Comparing Exchange Rates
As foreign exchange is an over the counter product, different providers will be quoting different rates at the same time. You will want the best exchange rate available, so we advise that you shop around. When you are comparing exchange rates offered by different providers, you need to consider both the exchange rate that is quoted and any transaction fees that may be applicable. For example, a good exchange rate may be accompanied by high transaction fees, so you need to take both into account.
How to Enter a Transaction?
Once your SingX account has been fully activated you can create a transaction either through our online portal or our mobile phone application. Please check the website for market opening hours. You will need to log on using your Username and Password set up at registration. Transaction instructions cannot be accepted by telephone or email.
Once a transaction has been created on the website or on our mobile app, you will need to send the money to our designated bank account. SingX only allows you to exchange funds that have been cleared into our account. You need to send us the funds you wish to exchange in advance of being able to execute a transaction. We will advise you of where to send the funds via our website. You are not paid interest on any balances held by us.
Confirmation of Transactions
With respect to each FX contract, you will receive a transaction confirmation. You must check the details on the confirmation and if any discrepancies are evident, inform SingX immediately.
No Cooling Off
No cooling off period applies to FX contracts.
BENEFITS OF USING SINGX
The key features and benefits of using SingX are
RISKS OF USING THIS PRODUCT:
In deciding whether or not to enter into an FX contract you should be aware of the risks set out below. However, this section does not purport to disclose all of the risks associated with FX contracts. SingX recommends that you obtain independent financial, legal and taxation advice before you enter into FX contracts.
By entering into an FX contract today to set a rate for settlement in the future, you are obliged to deliver under that FX contract even if the exchange rate improves prior to settlement. You may therefore forego any benefit of a favourable movement in the exchange rate between the time you enter into the FX contract and the settlement date.
Market risk is the risk that the value of your FX position will change as a result of a movement in the underlying market price. If you enter into an FX contract without an underlying currency cash flow you should be aware that you will be exposed to changes in the market price.
When you deposit funds to an account nominated by us in order to complete your transaction you are taking the risk that SingX and it’s payments partners will be able to fulfil their obligations to you. This is known as Counterparty (or Credit) Risk. FX contracts are not traded on a regulated exchange. Clients must deal directly with SingX to open and close positions. Given you are dealing with SingX as counterparty to every transaction, you will have an exposure to us in relation to each transaction. This is common to all over-the-counter financial market products. The obligations of SingX to make payments in respect of the contracts are unsecured obligations of SingX, which means that you are subject to our credit risk. If we were to become insolvent, we may be unable to meet our obligations to you. If we default on our obligations, Clients may become unsecured creditors in an administration of liquidation and will not have recourse to any underlying assets in the event of our insolvency. SingX may choose to limit this exposure by entering into transactions as principal in the wholesale market in relation to its exposures with clients. SingX will not use funds in the client segregated bank account for this purpose. In addition, SingX must comply with the financial requirements imposed under its AFS Licence. SingX constantly monitors the credit worthiness of its banking providers seeking to ensure the protection and safety of client funds. We do not speculate on foreign exchange or invest funds for proprietary purposes. All client funds are held in highly liquid banking deposits. If our banking partners experience financial difficulty and can no longer returns the funds when requested, SingX may not be able to meet its obligations to you. When you send your funds to SingX you accept the risk that SingX can meet its obligations to you at the terms of the transaction. Counterparty risk is limited as your funds are in most cases, exchanged and transferred to a beneficiary within a short space of time, usually 1-2 business days, depending on your requirements.
All money deposited by the Client with SingX, is kept in a bank account nominated by SingX. Typically, money goes into a client segregated bank account. Such monies may be utilised by SingX in line with the Corporations Act requirements.
Client monies which are held pending future transactions and payments are held in our segregated account in accordance with the Corporations Act. It is important to note that holding your money in one or more segregated accounts may not afford you absolute protection. SingX is entitled to retain all interest earned on client moneys held in client segregated bank accounts with a bank or other approved deposit-taking institution. The rate of interest earned by SingX on this account is determined by its bank.
Once you have entered into a Spot Contract with us, you will have locked in an exchange rate, so your transaction will not be affected by subsequent exchange rate movements; you will be protected from adverse exchange rate movements and, equally, you will be precluded from benefitting from favourable exchange rate movements. However, in deciding whether or not to enter into a Spot Contract, you need to appreciate the risk of not doing so. Foreign exchange currency markets are subject to many influences which may result in rapid currency fluctuations. Those influences are unpredictable and often entirely unforeseen. They include such things as changes in a country’s political condition, changes in the global economic climate and natural disasters, all of which may substantially affect the price or availability of a given currency.
Operational risk is the risk of loss resulting from inadequate or failed technological systems, internal processes or external events. We employ the latest and most sophisticated technological security measures, including SSL 128 bit encryption for all data transfers over the internet, and also have in place physical risk reduction processes and procedures. However, there are significant risks associated with using and relying on a web-based, electronic trading platform. Such risks include, but are not limited to, risks related to the use of software and/or telecommunications systems such as software errors and bugs, delays in telecommunications systems, interrupted service, data supply errors, faults or inaccuracies and security breaches. While we will use all reasonable efforts to ensure uninterrupted access to the website at all times, we cannot guarantee that such access will never be interrupted as a result of technical or other unforeseen problems as these are matters largely outside our control. We therefore reserve the right to suspend or terminate access to the website at any time and without prior notice and we can’t accept any liability for any loss caused by lack of access to our system or for any errors in the software and/or related information systems. There are important provisions relating to trading via our website or your mobile phone, in our Terms & Conditions. You must ensure that you fully understand these provisions and the risks involved in relying on an online, electronic trading system and the limitations in the service that SingX can provide in relation thereto. There is also the risk that our banking providers may make an error or have unscheduled delays in crediting your funds to our Client Accounts or transferring them. We chose our partners carefully and are confident that they can provide services to a standard of service as would be expected from our clients. While we constantly monitor our partners there is always the risk associated with payment processing due to system failures or errors.
When you log into the SingX platform to create a transaction, these fees are shown to you clearly as the ‘SingX Fees’. SingX usually charges a transaction fee of around 0.5%, especially for frequently traded currencies, varying marginally across different currency exchange pairs. For example, if you plan to send $1,000, SingX may charge a fee of $5 (0.5%). Additionally, SingX may charge a flat transaction fee from $2 to $12 for certain currency exchange pairs and additional incidental expenses of up to $1 per transaction for specific local remittances. These charges are all included in Transaction Fees. Only in the case of infrequently traded currencies, the transaction fees could be substantially higher, up to 5%. You must factor this overall fee into the cost of the transaction. If you are comparing rates, you should bear in mind that an attractive exchange rate may be offset by a high transaction fee (or vice versa). The fee is quoted in the currency you are transferring and must be paid in that currency. You must send clear funds totalling your transfer amount plus our transaction fees to us.
In a majority of instances, SingX quotes inter-bank spot rates as the foreign currency exchange rate. In some instances, SingX derives a financial benefit by offering a rate to clients which applies a spread. The FX mark-up refers to the difference between the rate we obtain from our own providers on the wholesale foreign exchange market (e.g. the Interbank Spot Rate) and the rate we quote you. The spread will vary from currency to currency and from time to time. We will not usually be able to tell you what the spread is, but you are always free to compare the exchange rate we quote you with other providers to ensure that we are offering you a good rate.
Although SingX aims to avoid having additional third party fees deducted from your funds, in some cases it is unavoidable. Certain intermediary banks we use to process transactions or receiver’s bank may deduct transaction fees that we have not anticipated. For example, in some jurisdictions, the receiving bank charges a receiving bank fee. We will try and alert you if we are aware but generally we will not know in advance. You should bear this in mind if you are paying the precise amount of an invoice or personal payment. This may result in an amount less than you transferred arriving at the Beneficiary Account. SingX does not levy or receive these fees and will not be liable for payment of such. If you have any questions regarding the likelihood of third party fees being levied by intermediary banks or receiving banks, please contact us at help.au@singx.co, prior to booking and executing a transaction with us
Administration charges may be incurred when our receiving bank refuses your transaction due to incorrect payment details, their regulatory requirements or any other valid reason. Any administrative charges from receiving banks will be deducted from your payment amount. Similarly, you will bear administration charges for refunds if the transaction has failed due to any failure of relevant money laundering or know your client regulations or if the transaction has failed because the validity of our foreign exchange quote had expired by the time funds were sighted.
SingX Powers – Suspending or Closing Accounts/Transactions
SingX retains the right to suspend or cancel your Account without prior notification as set out in the Terms of Use. We can also refuse to facilitate the execution of any transaction or Close Out a transaction without prior notice to you. This may be necessary in circumstances such as;; (i) Breaching one or more of the Terms of use, (ii) Failure to make a payment due, (iii) a dispute between us, (iv) Failure to provide material information, or in our opinion the information is inaccurate or misleading, (v) We believe you are involved in unlawful or illegal activities, (vi) We believe that it is being used in connection with money laundering / terrorist financing activities or if we are directed to do so by a regulatory authority, (vii) In the event of your death or loss of mental capacity, (viii) If bankruptcy or winding up proceedings are commenced against you, (ix) If we are no longer able to supply the services detailed in this PDS & (x) If we receive money from someone else’s bank account.
Tax implications may arise from any transaction or transfer of funds you enter into with us. Tax rules change from time to time and individual circumstances are different. When determining whether or not this product is suitable for you, you should consider the impact it will have on your own taxation position and seek professional advice on the tax implications it may have for you. We recommend that you seek independent taxation advice before entering into transactions. You should be aware of the New Business Tax System (Taxation of Financial Arrangements) Act 2003 (Cth) (the “Act”) that introduced foreign exchange tax rules from 1 July 2003.
No GST should be payable in relation to your FX contracts. This is on the basis that they are considered to be ‘financial supplies’ under the A New Tax System (Goods and Services Tax) Act 1999. Consequently, they are input taxed and no GST is payable on their supply. However, independent advice should be sought from your accountant or financial adviser confirming this, before acting in reliance thereon. GST is not payable on any fees or charges associated with your transactions.
SingX has an internal dispute resolution process in place to resolve any complaints or concerns you may have, as quickly and fairly as possible in the circumstances. Any complaints or concerns should be advised to Compliance Officer of SingX by email (help.au@singx.co). We will seek to resolve your complaint within 7 days or such further time period that may reasonably be required given the nature of the complaint. We will investigate your complaint, and provide you with our decision, and the reasons on which it is based, in writing. If you are dissatisfied with the outcome, you have the right to lodge a complaint with the Australian Financial Complaints Authority (AFCA).
SingX has an internal dispute resolution process in place to resolve any complaints or concerns you may have, as quickly and fairly as possible in the circumstances. Any complaints or concerns should be advised to Compliance Officer of SingX by email (help.au@singx.co). We will seek to resolve your complaint within 5 days or such further time period that may reasonably be required given the nature of the complaint. We will investigate your complaint, and provide you with our decision, and the reasons on which it is based, in writing. If you are dissatisfied with the outcome, you have the right to lodge a complaint with the Financial Ombudsman Service, an approved external dispute resolution scheme.
Singx Australia Pty. Ltd. is a member of Australian Financial Complaints Authority (AFCA). Our AFCA member ID is 72514. You may either call AFCA on 1800 931 678 or send an Email to info@afca.org.au For more details, please visit https://www.afca.org.au.