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RISK FACTORS |
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The Plan has a maturity of six years
and is intended as a medium term investment. If you sell your
investment before its maturity date you may get back less than your
Initial Investment. Prior to maturity, limited liquidity for the
securities will be provided in the secondary market. This means that
it may not always be possible to sell the securities at certain
times and that the price achieved may be less than the original
investment. It is anticipated that MSI plc will be the only dealer
in the securities. MSI plc may also have been or may be an associate
of an issuer (or any of its affiliated companies) of Notes in which
the Plan invests and as such may have a conflict with the holders of
those Notes. In acting as a dealer in any notes, the economic
interests of MSI plc may be different from those of the holders or
the relevant issuer.
Your money will be invested in securities issued by financial
institutions with a credit rating, at the time of publication
of this brochure, of AA- or better by Standard & Poor’s or the
equivalent rating by Moody’s Investor Services Limited at the time
of purchase. These securities will be designed to provide the return
for your investment. In the event of these financial institutions
going into liquidation or failing to comply with the terms of the
securities, you may not receive the anticipated returns on your
investment and you may lose all or part of the money you originally
invested. The Plan is not a guaranteed investment.
Credit ratings are an independent measure of credit worthiness. They
can be applied to financial institutions and are assessed and
reviewed by independent companies known as ratings agencies
(including Standard and Poor’s and Moody’s Investor Services,
amongst others). Credit ratings for financial institutions can go up
or down at any point in response to changes in the financial
position of the financial institution in question.
The growth returns of the Plan are based on the price performance of
the FTSE 100 index and do not include any return from dividend income or
participation in corporate actions, as would be the case if you
invested directly in the shares comprised in the FTSE 100 index.
Accordingly, the return on the Plan may be less than the return from
a direct investment in such shares.
The Final Index Level will not be
based on a single reading of the FTSE™ 100 Index, but on the average
level of the Index on a given set of dates over the final twelve
months (13 observations), defined in the Returns At Maturity section
on page 2. Any increase or fall in the level of the FTSE™ 100 Index
at any time or on any date other than its closing level on any of
such given dates will not be reflected in the determination of the
return on the Plan. There can be no assurance that the average FTSE™
100 Index level or that the Initial Index level will reflect the
then prevailing trend (if any) for the level of the FTSE™ 100 Index
or the market price of the shares comprised in it. While the use of
averaging may protect against falls in the FTSE™ 100 Index on a
specific date, it may also significantly constrain the performance
of the FTSE™ 100 Index, as used to calculate the return on the Plan.
Accordingly, the calculation of the average FTSE™ 100 Index level
may result in a lower return than if a single reading of the FTSE™
100 Index was taken at the Plan maturity.
If you have invested via an ISA and
subsequently decide to withdraw, it may not be possible to invest in
another ISA of the same type for the same tax year in which you have
invested if your cancellation period has expired. If you have
invested via an ISA transfer, unless you are able to find another
plan
Your circumstances could change, forcing you to withdraw and realise
your investment early. If this happens, you may get back less than
the amount you originally invested.
The formula under which the return on the Plan is likely to be
calculated provides that in certain circumstances calculation of the
return may be adjusted to take account of market disruption events
interfering with determination of the level of the FTSE 100 index. A
relevant market disruption would be a suspension or limitation of
trading on the London Stock Exchange of a material proportion of the
shares included in the FTSE 100 index, which would delay or prevent
calculation of the official FTSE 100 index level. Should this occur, the
return on the Plan may be affected and may be more or less than
would otherwise have been the case. Similar provisions are also
likely to be included to address any charge, modification or failure
in respect of the calculation and announcement of the FTSE 100 index with
similar consequences.
Payments scheduled to be made in respect of the securities in which
the Plan will invest your money may be delayed where market
disruption events occur (as described above), causing a delay to the
availability of published index levels for the FTSE 100 index, and
potentially therefore delays in the Plan Manager making payments to
you. Where necessary in the event that any such payments are
delayed, corresponding adjustments will be made to the scheduled
dates for payment under the Plan.
Past performance is not necessarily a guide to future performance
and should not be used to assess the risks associated with this
investment. In recent years the performance of the FTSE 100 index
has been volatile. There can be no assurance as to the future
performance of the FTSE 100 index. Before making an investment in
the Plan you should consider whether an investment linked to the
FTSE 100 index is suitable for you.
The levels and basis of taxation and reliefs from taxation can
change at any time. The value and availability of any tax relief
depends on individual circumstances. The favourable tax treatment of
ISAs and PEPs* may not be maintained throughout the term of the
ISA/PEP*, and is subject to changes in legislation.
Please refer to the Brochure and the Terms & Conditions for full
details.
