Meteor FTSE/S&P Annual Step Down to 85 Kick Out Plan – December 2023 – CR8043
The Meteor FTSE/S&P Annual Step Down to 85 Kick Out Plan is a maximum six year three week investment offering a potential gross return of 9.85% for each year the plan runs, subject to the performance of the FTSE 100 and S&P 500 Indices.
Repayment of Capital;
You will get all of your invested money back on a Kick Out; or, at the End Date if the End Levels of both Indices are at or above 60% of their respective Start Levels. This barrier level is called the Loss Barrier.
If one or more of the End Levels of the Indices are below 60% of their respective Start Levels, customers will lose money proportional to the fall in the worst performing Index.
Investment return;
The plan starts on the Start Date. On a Measurement Date, if the levels of both Indices are at or above a defined percentage of their respective Start Levels, the plan will end and pay Growth equal to 9.85% of the money invested for every year the plan has been in force. This is called a Kick Out and the barrier levels are called the Kick Out Barriers. The first date this can happen is 2 years after the start date.
If the plan never Kicks Out and reaches the End Date, the Indices will be measured for the last time. If the End Levels of both Indices are at or above 85% of their respective Start Levels, the plan will pay Growth equal to 59.10% of the money invested, otherwise, no Growth will be achieved.
The Counterparty to this plan is Credit Agricole CIB in its capacity as issuer of the financial contracts. If the Counterparty’s ability to pay its financial obligations deteriorates significantly, customers’ money, regardless of how the plan is performing at the time, will be at risk of not being paid back in full. Customers will not be entitled to compensation from the Financial Services Compensation Scheme (FSCS) in this event.
It is Meteor’s understanding that any investment return from a direct investment by individuals or Trusts into this Plan is expected to be subject to Capital Gains Tax.
Other Key Information
The product is in the form of a debt instrument, governed by English law, which performance depends on the performance of an underlying reference value. The product bears a risk of losing some or all of the capital invested.
Crédit Agricole CIB
To receive a single payment on the Maturity Date or on any earlier Payment Date on which the product terminates in return for the risk of loss of capital. Amounts stated below are in respect of each Nominal Amount that you invest.
The amounts you will receive depend directly on the performance of the Underlying(s) and are determined by referencing the performance of Preference Shares which are directly linked to the Underlying(s). Therefore, for ease of explanation of the objectives of the product, the product is described in this document as being linked to the Underlying(s).
• Autocall Event: If the Worst Underlying Performance is greater than or equal to the relevant Autocall Barrier Level on any Autocall Valuation Date, the product will be redeemed early and you will receive, in addition to the Nominal Amount, an amount equal to the Bonus Amount plus the sum of all Bonus Amount(s) for any previous Payment Date(s) on the immediately following Payment Date. No further payments will be made following such payment and early redemption.
• Redemption on the Maturity Date:
– Redemption Amount: If the product is not redeemed early, then you will receive one of the following:
▪ If a Barrier Event has NOT occurred:
– If the Worst Final Underlying Performance is greater than or equal to the last Autocall Barrier Level, you will receive, in addition to the Nominal Amount, the Bonus Amount plus the sum of all Interest Amount(s) for any previous Payment Date(s).
– If the Worst Final Underlying Performance is lower than the last Autocall Barrier Level, you will receive the Nominal Amount.
▪ Otherwise, you will receive an amount equal to the Nominal Amount diminished by an amount equal to the Nominal Amount multiplied by the Final Worst Performance. The amount paid in such case will be less than the Nominal Amount and you may lose some or all of your capital.
Early redemption and adjustments The terms of the product provide that if certain defined events, in addition to those described above, occur (principally but not exclusively in relation to any Underlying, or the Manufacturer of the product (which may include the discontinuation of the Manufacturer’s ability to carry out the necessary hedging transactions)), adjustments may be made to the terms of the product to account for the relevant event or the product may be early redeemed. The amount paid on any early redemption may be less than the amount originally invested.
This product is intended for clients who:
• have sufficient knowledge and experience in products such as the one described in the key information document
• are willing and able to bear a potentially total loss
• have a risk tolerance consistent with the summary risk indicator in this document
• are expressing a view on the underlying consistent with the conditions for a positive outcome (as stated in the product description)
• have a horizon consistent with the term of this product as determined independently or on the basis of professional advice.
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?
Application Fee
Our fee is just 0.5%. This can be deducted from the investment or paid directly to us.
Important Plan Dates
Closing Date: 13 December 2023
ISA Transfer closing date: 29 November 2023
Important Documents
> Plan Brochure – FTSE/S&P Annual Step Down to 85 Kick Out Plan – December 2023
Application Forms
Other application form
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Is the Meteor FTSE/S&P Annual Step Down to 85 Kick Out Plan right for me?
A typical investor who invests in this Plan will:
♦ Be 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 capital growth;
♦ 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 40% 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 investment return is dependent on the performance of the Indices, which is calculated on set dates, and accept they might not get any investment return at all;
♦ Know that the level of the Indices can fall but do not expect the fall to be more than 40% of their 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 investment return and that they would not have any recourse to the FSCS.
An investor will not meet the target market criteria if:
♦ They do not understand how this investment works;
♦ They are unable, or unwilling, to accept the risks associated with this Plan, including the loss of their money;
♦ The Plan does not meet their investment objectives.