Risk Factors

RISK FACTORS

This investment may be suitable for you if:

• You are prepared to risk losing some or all of your capital (Option 2)

• You are prepared to leave your money invested for the full term to benefit from 100% capital protection (Option 1)

• You don’t need access to your money over the next 6 years

• You want a tax efficient investment within an ISA or your Pension Plan

• You have a minimum of £3,600 to invest

• You are looking for an investment that is linked to the performance of the stock market

• You like the possibility of accelerated growth during the Investment Term

This investment may not be suitable for you if:

• You are not looking for an investment linked to the performance of the FTSE® 100 Index

• You are not prepared to put your capital at risk (Option 2)

• You want a regular income

• You do not have enough spare money for emergencies

• 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 £3,600 to invest

• The Plan aims to provide the potential for an accelerated capital growth plus capital repayment at maturity that is dependent on the performance of the FTSE® 100 Index. The ability to provide this growth is achieved by exposing your capital to risk. On maturity you may not receive back the original capital invested. If the Closing Level of the FTSE® 100 Index is 50% or less of the corresponding Start Index Level on any business day during the term of the investment it is likely to lead to the decrease of an Investor’s investment capital. Please see the section ‘Your capital repayment’ on page 8 for full details. (Option 2 only) Provided you leave your money invested for the full 6 year investment term, you will receive a 100% repayment of your original capital regardless of the FTSE® 100 Index performance. (Option 1 only)

• Any capital growth generated by the Plan does not include any allowance for dividends paid by the companies which comprise the FTSE® 100 Index.

• The Plan Manager will arrange for the purchase of Plan securities from financial institutions rated ‘AA-’ or better (as measured by leading credit rating agency) at the time of print. In the event of such securities being unavailable, the Plan Manager may substitute the securities with alternatives with similar characteristics.

• There is a risk that the financial institution counterparty may fail to meet its obligations. In addition, the terms of the investment may permit the financial institution 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.

• Your circumstances could change, forcing you to sell your Plan investments 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.

• You cannot claim full reimbursement if the price at which your securities were purchased has fallen, when we sell them, following you exercising your right to cancel.

• If you have invested via an ISA and subsequently decide to cancel, it may not be possible to invest in another ISA for the relevant tax year in which you invested.

• Tax assumptions are based on Keydata's 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 their professional advisers.

• Past performance IS NOT necessarily a guide to future performance and should not be used to assess the risks associated with this investment.

• The Dynamic Growth Plan Plus is not the same as a bank or building society account where capital is guaranteed and, with instant access accounts, is readily available without penalty.

• The effect of inflation will reduce the real value of what you receive at the end of the term.

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