Base Prospectus - Malta Financial Services Authority

natural disasters or the failure of external systems, for example, those of the Issuer’s suppliers or
counterparties. Although the Issuer has implemented risk controls and loss mitigation actions, and
substantial resources are devoted to developing efficient procedures and to staff training, it is not
possible to implement procedures which are fully effective in controlling each of the operational
risks.
Liquidity risk
The inability of the Issuer to anticipate and provide for unforeseen decreases or changes in
funding sources could have adverse consequences on the Issuer’s ability to meet its obligations
when they fall due.
Impact of regulatory changes
The Issuer is subject to financial services laws, regulations, administrative actions and policies
in Norway and in each other jurisdiction in which the Issuer carries on business. Changes in
supervision and regulation, in particular in Norway, could materially affect the Issuer’s business, the
products and services offered or the value of its assets. Although the Issuer works closely with its
regulators and continually monitors the situation, future changes in regulation, fiscal or other
policies can be unpredictable and are beyond the control of the Issuer.
Factors which are material for the purpose of assessing the market risks associated with Notes
issued under the Programme
The Notes may not be a suitable investment for all investors
Each potential investor in the Notes must determine the suitability of that investment in light
of its own circumstances. In particular, each potential investor should:
(i) have sufficient knowledge and experience to make a meaningful evaluation of the
relevant Notes, the merits and risks of investing in the relevant Notes and the
information contained or incorporated by reference in this Prospectus or any applicable
supplement to this Prospectus;
(ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context
of its particular financial situation, an investment in the relevant Notes and the impact
such investment will have on its overall investment portfolio;
(iii) have sufficient financial resources and liquidity to bear all of the risks of an investment
in the Notes, including Notes with principal or interest payable in one or more
currencies, or where the currency for principal or interest payments is different from the
currency in which such potential investor’s financial activities are principally denominated;
(iv) understand thoroughly the terms of the relevant Notes and be familiar with the behaviour
of any relevant indices and financial markets; and
(v) be able to evaluate (either alone or with the help of a financial adviser) possible
scenarios for economic, interest rate and other factors that may affect its investment and
its ability to bear the applicable risks.
Some Notes are complex financial instruments and such instruments may be purchased as a
way to reduce risk or enhance yield with an understood, measured, appropriate addition of risk to
their overall portfolios. A potential investor should not invest in Notes which are complex financial
instruments unless it has the expertise (either alone or with the assistance of a financial adviser) to
evaluate how the Notes will perform under changing conditions, the resulting effects on the value
of such Notes and the impact this investment will have on the potential investor’s overall
investment portfolio.
Risks related to the structure of a particular issue of Notes
A wide range of Notes may be issued under the Programme. A number of these Notes may
have features which contain particular risks for potential investors. Set out below is a description of
the most common such features:
Notes subject to optional redemption by the Issuer
An optional redemption feature is likely to limit the market value of Notes. During any period
when the Issuer may elect to redeem Notes, the market value of such Notes generally will not rise
substantially above the price at which they can be redeemed. This also may be true prior to any
redemption period.
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