(1) An investment firm shall provide clients or potential clients with a general description of the nature and risks of financial instruments,
(a) taking into account, in particular, the client's categorisation as either a retail client or a professional client, and
(b) ensuring that the description explains -
(i) the nature of the specific type of instrument concerned, and
(ii) the risks particular to that specific type of instrument,
in sufficient detail to enable the client to make informed investment decisions.
(2) The investment firm shall ensure that the description of risks includes, where relevant to the specific type of instrument concerned and the status and level of knowledge of the client, the following elements:
(a) the risks associated with that type of financial instrument including an explanation of leverage and its effects and the risk of losing the entire investment;
(b) the volatility of the price of such instruments and any limitations on the available market f