The Meteor FTSE® Quarterly Contingent Income Plan is a maximum 8 year and 3 week investment that offers potential quarterly gross income of 1.375% (option 1) or 1.50% (option 2).
You will lose money if the Final Level of the Index is below 65% of its Opening Level. The amount of your money that you would lose will be the percentage by which the Final Level of the Index is below its Opening Level. In extreme circumstances you could lose all of your money. If the Final Level of the Index is at least equal to 65% of its Opening Level you will get back the amount you invested.
Option 1: If the Closing Level of the Index on any Quarterly Measurement Date is at least equal to 80% of its Opening Level, the Plan will pay a gross income of 1.375% for that quarter. No income will be payable for a quarter if the Closing Level of the Index is below 80% of its Opening Level on the Quarterly Measurement Date.
Option 2: If the Closing Level of the Index on any Quarterly Measurement Date is at least equal to 85% of its Opening Level, the Plan will pay a gross income of 1.50% for that quarter. No income will be payable for a quarter if the Closing Level of the Index is below 85% of its Opening Level on the Quarterly Measurement Date.
The first Quarterly Measurement Date will be on 30 July 2021, three months after the Start Date. Thereafter, the performance of the Index will be measured quarterly. If the kick-out condition is met (see below), income will be paid in respect of that quarter and the Plan will mature early. No further income payments will then be payable.
From year 2, the Plan will kick-out, i.e. mature early, if the Closing Level of the Index is at least 5% above its Opening Level on any Quarterly Measurement Date. In this event you would receive a full return of your money, as well as the income due for that quarter. The first Quarterly Measurement Date on which an early maturity could be triggered will be on 2 May 2023, two years after the Start Date.
The Securities purchased will be Certificates issued by BNP Paribas Issuance B.V. and guaranteed by BNP Paribas. The Securities can be viewed in a similar way to a loan to the Issuer, which is in turn linked to the performance of the Index.
It is possible that the Counterparty could collapse or fail to make the payments due from the Plan. If this happened, the investor would lose some, or all, of the money they invest in the Plan, as well as, any income payments to which they might otherwise have become entitled.
It is Meteors understanding that any income payments from a direct investment by individuals or Trusts into this Plan are expected to be subject to Income Tax.
Other Key Information
This product is a certificate, a transferable debt instrument.
BNP Paribas S.A. – www.bnpparibas.com Call +33 (0)1 57 08 22 00 for more information
The objective of this product is to provide you with a return based on the performance of an underlying index. This product has a fixed term and will redeem on the Redemption Date unless redeemed early in accordance with the Automatic Early Redemption provisions below. The product may also pay coupon under predefined conditions in accordance with the Coupon provisions below.
Unless the product has been redeemed early, the following provisions would apply.
On the Redemption Date you will receive in respect of each certificate, in addition to any final payment of a coupon:
1. If a Barrier Event has not occurred: a payment in cash equal to the Notional Amount.
2. If a Barrier Event has occurred: a payment in cash equal to the Notional Amount decreased by the Performance of the Underlying. In this case you will suffer a partial or total loss of the Notional Amount.
Coupon: A conditional coupon is due for payment at the relevant Conditional Coupon Rate if, on a Coupon Valuation Date, the closing price of the Underlying is greater than or equal to the relevant Conditional Coupon Barrier.
Automatic Early Redemption: If, on any Autocall Valuation Date, the closing price of the Underlying is greater than or equal to the relevant Autocall Barrier, the product will be redeemed on the corresponding Early Redemption Date. You will receive for each certificate a payment in cash equal to the Notional Amount.
– A Barrier Event shall be deemed to occur if the Final Reference Price is below the Barrier.
– The Performance of an Underlying is the difference between its Final Reference Price and its Initial Reference Price, divided by its Initial Reference Price, expressed in absolute value.
– The Initial Reference Price is the closing price of the Underlying on the Strike Date.
– The Final Reference Price is the closing price of the Underlying on the Redemption Valuation Date
The product is aimed at investors who:
– they have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, either independently or through professional advice, and they may have experience of investing in and/or holding a number of similar products providing a similar market exposure;
– they seek income and/or capital growth, expect the movement in the underlying to perform in a way that generates a favourable return, have an investment horizon of the recommended holding period specified in the key information document and understand that the product may terminate early;
– they accept the risk that the issuer could fail to pay or perform its obligations under the product and they are able to bear a total loss of their investment; and
– they are willing to accept a level of risk to achieve potential returns that is consistent with the summary risk indicator shown in the key information document.
To gain a full understanding of this Plan it is important that you read the brochure carefully, including the product risks and terms and conditions. If you are unsure about any aspect of this investment product, please seek financial advice to ensure the Plan suits your requirements and overall investment planning.
Moneyworld does not offer investment advice. The information in this brochure does not constitute tax, legal or investment advice. Please read our terms of business before investing
How do I invest?
Our fee is just 0.5%. This can be deducted from the investment or paid by enclosing a cheque to Moneyworld.
Important Plan Dates
Closing Date: 28 April 2021
ISA Transfer closing date: 14 April 2021
Other application form
Is the Meteor FTSE Quarterly Contingent Income Plan right for me?
A typical investor who invests in this Plan will:
♦ Be either an Informed or Advanced Investor, with appropriate knowledge and experience of equity-based investments;
♦ Like investments that provide known returns based on pre-determined market outcomes;
♦ Want the potential to secure an investment return above that available from a deposit-based investment and acknowledge and accept the level of risk, identified by the Summary Risk Indicator set out in the Key Information Document (KID);
♦ Be willing and able to tie up their money for the term of the Plan for the objective of producing income;
♦ Accept that they could lose money and be able to afford to do so;
♦ Understand that in the event of a loss that this loss would be at least 35% of the money they put into the Plan, and could be considerably more, and in extreme circumstances they could lose all of their money;
♦ Understand that any income payment is dependent on the performance of the Index, which is calculated on set dates, and accept they might not get any income at all;
♦ Know that the level of the Index can fall but do not expect the fall to be more than 35% of its Opening Level at the Final Measurement Date;
♦ Appreciate the importance of having a spread of investments to reduce concentration risk;
♦ Know and accept that inflation reduces the real value of money and what it can buy;
♦ Understand that equity markets are affected by economic and political events nationally and globally;
♦ Accept that if the Counterparty defaults they could lose all their money and any income and that they would not have any recourse to the FSCS.
The information provided on this page is not investment advice or an investment recommendation. It is designed to provide some guidance as to the possible future risks and rewards of this Plan.