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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) at the close of any Business Day falls 50% or
more from the corresponding Starting Index Level,
between 20 August 2008 up to and including 20 August
2014, it is likely to lead to the erosion of your
initial capital investment.
If the closing level of 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.
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 either a rated
Financial Institution or the affiliate of 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 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
12 June 2008.
However, there is a risk that the Issuer of the
Preference Share Securities may fail to meet its
obligations and it is you, the Investor, that faces this
risk rather than the Plan Manager.
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 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.
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.
By linking capital repayment to the worst
performing of the two indices the possibility of a loss
of capital is increased.
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.
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.
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 21%
Growth (Option 1) or 31.5% Growth (Option 2) even if the
Indices have grown by more than 21% (Option 1) or 31.5%
(Option 2).
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.
Please refer to the Brochure and the Terms & Conditions for full
details.
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