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RISK FACTORS |
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This plan is designed for those customers who want to secure a
high level of fixed income and are prepared to accept a risk to part
or all of their capital in return for these payments. It is
important that you understand that the overall return, capital plus
income, could be less than the amount invested.
You should also be aware that if you do not hold this Plan for the
full term, you may not get back the amount you invested. In
addition, please note that as this investment is linked to a
stockmarket, it is different from depositing money in a Building
Society or Bank account, and access to your capital during the
investment term is restricted.
To help you decide if this Plan is right for you, below is a brief
list of pros and cons which you should consider before investing.
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Yes, I wish to invest because:
• I am willing to
invest for a set period of time, known as the investment
term; (see page 2 of the brochure)
• I want an income from my investment
• I am not likely to need access to my money during the
investment term; (see page 9)
• The structure of the Plan means that the shares do not
have to rise to achieve a full return of capital; (see pages
6 and 7)
• I know that the value of the shares can fall as well as
rise; (see pages 3 and 4)
• I understand that although the assets will be
provided by a major Investment Bank with a current credit
rating from Standard & Poor’s or equivalent rating agency of
at least ‘A+’, there is a chance that they may default on
the payments due and this means that I may lose some, or
all, of my investment, known as the counterparty risk; (see
pages 3 and 12)
• I am prepared and can afford to accept the investment
risks; (see pages 6, 7 and 9)
• I have asked my Financial Adviser to answer any
questions or queries I had. |
No, I don’t think I should invest because:
• I am not prepared to
accept any risk of loss to my capital; (see pages 6 and 7)
• I don’t want an investment that is linked to the
performance of shares of the leading UK banks
• I may need access to my money before the end of the
investment term; (see page 9)
• I don’t fully understand how the Plan works; (see pages 3
to 7)
• I don’t have any other savings or investments; (see page
9)
• I want to invest for capital growth |
What Should I consider before Investing
You must appreciate that
your investment return is capped
Should the shares rise by the end of the term, you will
still only receive back the fixed income payments and your
return of capital.
You need to understand the risks
Whilst this investment is capital protected at maturity
provided the shares are not less than 50% from their Opening
Levels at the end of the investment term, you need to accept
that there is a risk to your capital. Should two or more of
the relevant shares finish by more than 50% below their
Opening Levels at close of business on the 2nd May 2013, you
will not receive back your full investment. If this should
happen, then the amount of money you receive back will be
reduced by 1% for each 1% the lowest performing share closes
below its Opening Level.
You need to be aware that access to your money will be
restricted
You should only invest in the Plan if, at the outset, you
believe that you will not need to access your capital for
the full five-year term. Should you need your money prior to
the maturity date, this can be obtained but it is unlikely
that you will receive back the full amount you originally
invested.
Whether you require capital growth
As this Plan is designed to provide a fixed income, it is
not appropriate if you want to invest for capital growth.
The effect of inflation
You need to take account of
the fact that inflation will have reduced the real value of
the capital you receive at maturity.
Whether you have other savings and investments
As long as you are prepared
to accept the investment risks this Plan should only be
considered as part of your investment portfolio. You should
have savings that you can access immediately and without
penalty to meet any emergency
cash needs during the investment term.
Please refer to the Brochure and the Terms & Conditions for full
details. |
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