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Key Dates |
| Download Brochure & Applications |
Closing Date: 11 April 2012 |
| Order literature by post |
ISA Transfer Closing Date: 06 April 2012 |
Summary
• The Merchant Capital Kick Out Plan: FTSE Issue 6 runs for 6 years and 3 weeks. • Any growth is dependent on the performance of the FTSE™ 100 Index ("the Index"). • On any annual observation date from the 2nd year onwards (please see page 6 for dates), should the daily closing level of the Index be at or above its start level (Initial Level) the Plan will mature early (Kick Out) returning your capital in full plus 10.5% for each year that the plan has run (see the diagram on the opposite page), up to a maximum of 63% if triggered on the Final Level date (16 April 2018). • If the Plan does not Kick Out on or before 16 April 2018, you will still receive your capital back in full, as long as the Index is at or above 50% of its Initial Level. • However, if on 16 April 2018 the level of the Index is below its Initial Level by more than 50% your capital will not be repaid in full. In such a case, the capital will be lost at the rate of 1% for every 1% the Index has fallen from its Initial Level (see page 7 of the brochure for examples). • The return of capital and any growth offered by this Plan also depend on Bank of America Corporation remaining solvent. If Bank of America Corporation goes bankrupt, i.e. becomes insolvent, it may be unable to repay your investment. This is known as Counterparty Risk. If this occurs, you may lose some or all of your investment and you will not be entitled to compensation under the UK Financial Services Compensation Scheme. Individuals are only covered by the UK Financial Services Compensation Scheme if Reyker becomes insolvent whilst they hold their monies prior to investment in the plan and pending repayment following Maturity or Kick Out (see the Risk Factors on page 9 of the brochure). • The Plan is designed to be held until it either Kicks Out or reaches the Maturity Date. If you cash in your investment in the Plan before the Maturity Date the sum you will receive could be substantially less than the amount you invested in the Plan. Considerations for Investing If the following statements apply then an investment in the plan may be appropriate: • You understand that the Plan’s returns are linked to the performance of the Index which may fall as well as rise. • You understand that any capital growth and the return of your capital at Maturity of the Plan on 9 May 2018 depends on the continuing solvency of the Issuer. • You are comfortable with the fact that you may lose some or all of your investment. • You want your investment to provide capital growth rather than income. • You can afford to leave your money invested in the Plan for the next 6 years 3 weeks. • You understand that you may not be able to cash in your investment in the Plan, but if you can and do cash it in before the Maturity Date the sum you will get might not reflect the performance of the Index to the date on which you cash in and you could receive less than the amount you invested in the Plan. • You have £5,000 or more to invest (this does not apply to reinvestments). • You have received independent financial advice. If the following statements apply then an investment in this plan may not be appropriate: • You do not want an investment whose return is linked to the performance of the Index which may fall as well as rise. • You do not feel comfortable with the fact that any capital growth and the return of your capital at Maturity of the Plan on 9 May 2018 depends on the continuing solvency of the Issuer. • You cannot afford to risk the loss of some or all of your investment. • You need access to your investment during the next 6 years and 3 weeks. • You require income from your investments. • You do not have other savings or investments that are easily accessible to cover emergencies. • You want to add to this investment from time to time or at regular intervals. • You do not have at least £5,000 to invest. • You are unsure how the Plan works. • You have not received independent financial advice.  |
