RISKS

RISK FACTORS

Is this product right for you?

Yes, I am happy to invest because:

• You want to invest in a Plan linked to the performance of the stock market and understand returns are not certain

• You can afford to leave your money invested for the next six years

• You understand that encashment before maturity might not reflect the performance of the market to that point

• You do not require a regular income from your investment.

• You understand returns from the Plan may be higher but could be lower than from a bank or building society savings account

• You understand returns from the Plan may be better than the performance of the Index but in certain circumstances may be lower.

No, this plan probably isn’t right for me because:

• You want a guaranteed rate of return

• You are not looking for an investment based on the performance of the stock market

• You are looking for an investment to provide you with an income

• You require access to your investment during the next six years

• You prefer to save smaller amounts on a regular basis or want to add to your investment later

• You do not have other savings or investments, in particular easily accessible money to cover emergencies

• You are unsure how the investment works

•You do not have £3600 to invest

RISKS

• The overall returns will depend on the performance of the FTSE 100 and are not guaranteed

• If the level of the FTSE 100 at any time after the Plan starts is more than 120% above its Initial Level you will not receive any investment return when the Final Level of the Index is higher than at the start of the Plan.

• If the level of the FTSE 100 at any time after the Plans starts is more than 40% below its Initial Level you will not receive any investment return when the Final Level of the Index is lower than at the start of the Plan.

• The return from the Plan is dependent on the performance of the Index and may be less than you might receive from a bank or building society account

• In certain circumstances the return from the Plan may be less than performance achieved by the FTSE 100 Index

• Your circumstances could change, forcing you to cash in early.

• If you transfer or encash your Plan during the term you may get back less than the amount invested and will incur administration charges.

• If you exercise your right to cancel after the bond has been purchased you may not get back your full original investment.

• If the financial institution which issues the securities for your Plan fails to repay the amounts due you could lose some or all of your investment. To reduce this risk we will only deal with a financial institution, which has a current credit rating of at least ‘A’ from Standard & Poor’s, or equivalent, which denotes a high level of financial strength.

• If you choose to make an ISA transfer into the Plan you might have to pay an exit charge to your current provider and could lose some investment growth from your current ISA if the market rises while the transfer is being carried out.

• The levels and basis of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depends on individual circumstances. Tax assumptions are based on Arc Capital & Income plc’s understanding of current legislation and practice, which may change in the future.

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