Investment Risks

• The Plan provides a fixed annual or monthly income (payable in arrears) or a fixed growth option. Capital repayment at maturity is dependent on the performance of the FTSE™ 100 Index and the Dow Jones EURO STOXX® 50 Index. The ability to provide this income or growth is achieved by exposing your capital to risk. On maturity you may not receive back the original capital invested.

If the intra-day level of either Index during any Business Day is less than 50% of the corresponding Starting Index Level from the 8 May 2008 up to and including 8 May 2013 it is likely to lead to the erosion of your initial capital investment.

In the event of a fall of greater than 50% from the Starting Index Level of either Index, you will lose some or all of your capital if the Final Index Level of either index is less than the Starting Index Level. You will lose 1% of your original capital for every 1% that the Final Index Level is below the Starting Index Level for the Worst Performing Index (even if it is not that Index which has fallen by more than 50% from its Starting Index Level) Where the difference is a fraction of 1% the fraction will be applied. See page 5 for
further details.

• Your circumstances could change, forcing you to encash your Plan early. If this happens, you may get back less than the amount you originally invested. The value of the Plan will be determined by the price at which the Investments can actually be sold on the relevant Dealing Date. See ‘What happens if I cash my investment in early?’ on page 9.

• The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depend on individual circumstances. The favourable tax treatment of ISAs and PEPs may not be maintained in the future.

• Consideration  given prior to making a transfer of existing investments should include the exit and associated charges oftransferring your existing investments and the potential for loss of income or growth whilst the transfer is pending and whether the risk to capital in this Plan is suitable.

• The investment requires the purchase by the Plan Manager of one or more securities with a fixed maturity date. These will be held on your behalf and will have been specifically structured to match the Investment Objectives of the Plan.

The Issuer of the Securities’ capacity to meet its financial commitments is considered strong. This is supported by an independent assessment from a leading credit rating agency, Standard & Poor’s, which gives the Issuer a rating of A+.

However, there is a risk that the Issuer may fail to meet its obligations. In addition, the terms of the investment may permit the issuer of those investments to withhold, defer, reduce or even terminate payments in certain events, as a result of which investors may receive less than they would otherwise or may have to wait for the proceeds. 

• The FTSE™ 100 Index and the Dow Jones EURO STOXX® 50 Index are capital-only indices and take no account of dividend returns. As a result you will not receive any dividend payments or distributions.

• By linking capital repayment to intra-day levels the possibility of a loss of capital is increased.

• By linking capital repayment to the worst performing of the two indices the possibility of a loss of capital is increased.

• Careful consideration should be given to the benefits and risks of this Plan and its suitability to your own personal  circumstances and attitude to risk. We would recommend that you take professional advice before investing.

• It is important to understand that this Plan does not include the security of capital which is offered under a deposit with a bank or building society.

Please refer to the  Brochure and the Terms & Conditions for full details.