The Meteor FTSE Step Down Kick Out Plan is a maximum five year three week investment offering a potential gross return of 8.20% (option 1) or 8% (option 2) for each year the plan runs, subject to the performance of the FTSE 100 index.
Repayment of Capital;
Option 1: You will lose money if the Final Level of the Index is below 65% of its Opening Level. 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 2: You will lose money if the Final Level of the Index is below 60% of its Opening Level. If the Final Level of the Index is at least equal to 60% of its Opening Level you will get back the amount you invested.
In both cases, 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.
Investment return;
For both options: The first Measurement Date will be two years after the Start Date. If the Closing Level of the Index on any Measurement Date before the Final Measurement Date is at least equal to its Reference Level the Plan will kick out, i.e. mature early, and make a gross investment return.
For Option 1 The investment return, if triggered, would be 8.20% of the money you invest for each year that the Plan has been in force.
For Option 2 The investment return, if triggered, would be 8% of the money you invest for each year that the Plan has been in force.
If the Plan has not matured early, and the Closing Level of the Index on the Final Measurement Date (the ‘Final Level’) is at least equal to its Reference Level, the Plan will provide an investment return at the Maturity Date equal to:
♦ 41% of the money you invest for Option 1
♦ 40% of the money you invest for Option 2
If the Final Level of the Index is below its Reference Level, neither option will provide an investment return at the Maturity 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 and are linked to the performance of Preference Shares issued by BNP Paribas Synergy Limited, which is in turn linked to the performance of the Index.
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
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
This certificate provides a return which depends on the performance over the lifetime of the certificate of an underlying redeemable preference share issued by BNP Paribas Synergy Limited the value of which is in turn linked to the performance of an underlying share and/or index or basket of shares and/or indices. The description below is therefore based on the expected value of such preference share however the real return will depend on the actual value of the preference share.
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.
Unless the product has been redeemed early, the following provisions would apply. On the Redemption Date you will receive in respect of each certificate:
1. If the Final Reference Price is greater than or equal to 85% of the Initial Reference Price: a payment in cash equal to 141% (Option 1) or 140% (Option 2) of the Notional Amount.
2. If the Final Reference Price is less than 85% of the Initial Reference Price:
a. If a Barrier Event has not occurred: a payment in cash equal to the Notional Amount.
b. 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.
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 plus a premium based on the relevant Exit Rate.
Where:
– 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 intended to be offered to retail investors who fulfil all of the criteria below:
1. 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;
2. they 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;
3. 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
4. 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?
Application Fee
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: 18 April 2023
ISA Transfer closing date: 31 March 2023
Important Documents
> Plan Brochure – FTSE Step Down Kick Out Plan (BNP) – April 2023
Application Forms
Other application form
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Is the Meteor FTSE Step Down Kick Out Plan (BNP Paribas) 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 35% (Option1) or 40% (Option 2) 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 Index can fall but do not expect the fall to be more than 35% (option 1) or 40% (option 2) 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 investment return and that they would not have any recourse to the FSCS.