Dividends

If you hold a open bought CFD, you will be credited with an amount equal to the gross unfranked dividend on the underlying shares on the business day after the ex-dividend date (CFDs do not confer rights to any dividend imputation credits). Conversely, if you hold open sold CFD, your account will be debited an amount equal to the gross unfranked dividend on the underlying shares on the business day after the ex-dividend date.

If there is a corporate action by the company which issues the shares to which the CFD relates, there may be an adjustment to the terms of the CFD in accordance with the terms of the client agreement. For example, an adjustment will ordinarily be made for subdivisions, consolidations or re-classifications of shares, bonus issues or other issues of shares for no consideration, rights issues and other similar events. The principal has the right to decide to make an adjustment in any circumstance where it considers an adjustment is appropriate. The principal also has discretion to determine the extent of the adjustment so as to place the parties substantially in the same economic position they would have been in had the adjustment event not occurred.

The principal may elect to close a position where an adjustment event occurs and it determines that it is not reasonably practicable to make an adjustment. The principal may also elect to close a CFD, where the underlying shares are the subject of a take-over offer, prior to the closing date of the offer.