Careful consideration should be given to the risks of the Plan - in particular it is important that prospective investors understand that there is a counterparty risk and stated level of investment exposure to potential loss of capital. The Plan does not provide a guaranteed return of capital. The suitability of the Plan depends upon individual circumstances and attitude to risk. We recommend that all prospective investors take professional advice before investing.

Counterparty Risk: The Plan and the growth it is designed to provide are dependent upon the solvency of the issuing counterparty institution at all times - your investment is at risk in the event of the issuing counterparty institution defaulting upon their obligations. The terms of the investment may permit the issuer 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 Account Manager will arrange for the purchase of Plan securities from counterparty financial institutions with a credit rating of ‘AA-’ or better (as measured by Standard & Poor’s or equivalent) at the time the purchase of securities is arranged. In the event of such securities being unavailable, or should the credit rating of the issuing counterparty institution be downgraded by Standard & Poor’s (or equivalent), the Account Manager may substitute the  counterparty institution and/or securities with alternatives with similar characteristics.

Investment Risk: The Plan is designed to provide high growth potential and the full return of capital at maturity. However, the repayment of capital in full depends upon the performance of the market indices that are selected. Should any selected market index breach the capital protection barrier of 50%, ie by closing at more than 50% below its starting level, based on  any day’s closing prices during the investment term of 6 years, and fail to recover to be at or above its starting level, by the maturity date, capital is at risk and will be lost on a 1% for 1% basis, in line with the fall in value of the selected market index, from its original level.

The Plan is not the same as bank or building society accounts where capital is guaranteed and, with instant access accounts, readily available without penalty. The Plan is designed to be held until maturity and, although early closure maybe possible, it should be noted that the full return of capital is not assured before the maturity date and the price before the maturity date will depend upon a number of factors (including internal establishment expenses and charges, market movements, interest rates and market conditions, such as volatility) which are likely to  result in a capital loss, particularly in the early years.

The Plan provides capital growth only - there is no income or participation in dividends linked to the stocks that comprise the market indices.

Circumstances could change, forcing or influencing an investor to sell the Plan early. If this happens, as explained above, it is possible that less than the amount originally invested may be returned. The value of the Plan will be determined by the price at which the investments can actually be sold. It is not possible to claim full reimbursement if the price at which Plan securities were purchased has fallen.

It should also be noted that if an investor exercises their right to cancel the Plan, within 14 days of subscribing, if this is after the start date (the date upon which the Plan securities are purchased) the value of the Plan is immediately likely to be lower than its start level, which will result in a capital loss. It is not possible to claim full reimbursement if the price at which Plan securities were purchased has fallen. If the investment made was an ISA and the investor  subsequently decides to cancel, it may not be possible to invest in another ISA in the same tax year.

Tax assumptions are based on our understanding of current legislation and practice at the time of print. The levels and basis of taxation and reliefs from taxation can change at any time and any change could be applied retrospectively. The value of any tax relief depends on individual circumstances. For tax advice, potential investors should consult professional advisers.

Past performance IS NOT a guide to future performance and should not be used to assess the risks associated with this investment. The repayment of capital is linked to the future performance of the selected market indices, which may fall. It should also be remembered that the value of any capital repayment received in the future will be less in real terms, based upon the effect of inflation.

The Plan is a ‘Structured Capital at Risk Product’ as categorised by the Financial Services Authority (FSA). For information about what this means, please refer to the FSA website at www.moneymadeclear.fsa.gov.uk, which includes a page on structured products.

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