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Is this product
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This investment may not be suitable for you
if:
You are not looking for an investment linked to the
performance of stock markets
You are not prepared to put your
capital at risk
You want a regular income
You
may need immediate access to your money
You want a known guaranteed rate of return
You want to add to your investment on a regular basis
You do not have £7,200 to invest
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This investment may be suitable for you if:
You are prepared to risk losing some or
all of your capital
You like the idea of the possibility of early maturity to
consolidate any gains during the Investment Term
You dont need access to your money
over the next 6 years
You want a tax efficient investment
You have a minimum of £7,200
to invest |
Investment Risks
The Plan provides the potential for a
higher level of capital growth relative to current market
conditions. The ability to provide the potential for a higher level
of capital growth is achieved by exposing your capital to risk. On
maturity you may not receive back the original capital invested.
If the Index level (Option 1) or either Index level (Option 2)
during any Business Day falls 50% or more from the corresponding
Starting Index Level, between 16 June 2008 up to and including 16
June 2014, it is likely to lead to the erosion of your initial
capital investment.
If the lndex (either Index for Option 2) falls by 50% or more from
the Starting Index Level and if the Final Index Level of the Index
(either Index for Option 2) is less than the corresponding Starting
Index Level, you will receive no growth. You will also lose 1% of
your original capital for every 1% that the Final Index Level is
below the Starting Index Level. For Option 2 the level of the Worst
Performing Index (even if it is not that Index which has fallen 50%
or more from its Starting Index Level) will be used as the Final
Index Level. Where the difference is a fraction of 1% the fraction
will be applied. See pages 4 & 5 of the brochure 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 of the brochure.
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
may not be maintained in the future.
Consideration given prior to making a
transfer of existing investments should include the exit and
associated charges of transferring 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
from the Issuer of the Preference Share Securities. These have been
specifically structured to match the Investment Objectives of your
Plan.
The issuer of the preference shares will enter into a monetary
exchange agreement with a rated Financial Institution and the
payments received by the issuer under the monetary exchange
agreement will be used to fund payments to the shareholders. The
capacity of the rated Financial Institution, within this
transactional agreement, to meet its financial commitments is
considered very strong.
This is supported by an independent assessment from a leading credit
rating agency, Standard & Poors, which gives the Financial
Institution a rating of AA- as at 15th April 2008.
However, there is a risk that the Issuer of the Preference Share
Securities 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 you may receive less than you would
otherwise or may have to wait for the proceeds.
The FTSE 100 Index and the Nikkei 225 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 the
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.
Investors should be aware that if early maturity
conditions are met, proceeds are fixed at the growth level
specified. If, for example, at the end of Year 2 the Plan matures
with the Index or Indices the same or higher than the Starting Index
Level/s, investors will receive repayment of their original capital
plus 25.5% Growth (Option 1) or 38% Growth (Option 2) even if the
Indices have grown by more than 25.5% (Option 1) or 38% (Option 2).
The maturity proceeds received under this
Plan are dependent on the closing level of the Index or Indices on 6
specific predetermined days over the 6 year period of this
investment. The amount which you will receive could be affected by
events on each of those 6 dates. This investment is susceptible to
short-term market fluctuations on the 6 dates specified and you
should understand and be prepared to accept this risk.
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.
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