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Is this product
right for you? |
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To help you
decide if the Plan is right for you, here is a summary of key points
you should think about. Before investing, please consider not only
the benefits but also all of the risks associated with buying such a
product and the commitment you are making.
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Yes ,
I am happy to invest because:
• I would like the potential for a higher return linked to
the stock market than I would get from a bank deposit.
• I think the proposed rates to be a good potential return.
• I would like the potential for early return of my
investment
• I am willing to risk losing some or all of my Capital if
the Index falls by 50% or more at any time during the
Investment Term.
• I understand that the return of my Capital is subject to
Counterparty Risk as described on page 5 of the plan
brochure.
• I want an investment that is taxed as Capital Gain |
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No ,
this plan probably isn’t right for me
because:
• I am not willing to risk losing any of my
Capital if the Index falls by 50% or more or due to
bankruptcy of the Issuer.
• I do not have other funds available for emergencies, and
cannot risk having to sell the investment at a loss before
the end of the Investment Term.
• I want a regular income from my investment, and do not
want to risk not receiving a return from it.
• I do not have £15,000 to invest for a five-year term.
• I might want to add to my investment from time to time
during the Investment Term.
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Things to consider
Your
capital is at risk from a fall in the Index at Maturity
If the Plan does not redeem before the Maturity Date and
the Index closes below 50% of its Initial Level on the
Investment End Date, the Capital returned to you will be
reduced. See the “Returns” section of the brochure for details.
The Redemption Bonus does not grow by the same amount
each year, and is limited
The Plan may pay a Redemption Bonus as described on page
7 of this brochure, of 10% on the first Early Redemption
Date, 18% on the second Early Redemption Date, 24% on
the third Early Redemption Date, 28% on the fourth Early
Redemption Date, or 30% on the Final Redemption Date.
Because the Redemption Bonus does not increase by the
same amount, your annualised return would be lower than
10% in each subsequent year after the first Early
Redemption Date.
The Plan is not a deposit account and is not
guaranteed by any third party
Investing in the Plan is not the same as putting your
money in a deposit account, nor is it the same as
investing in the companies that make up the Index, and
the Plan is not covered by a deposit guarantee scheme.
Your money will be invested by the Plan Manager in
warrants which are designed to pay the returns of the
Plan as described in this brochure.
No dividends or
distributions from companies in the Index
Investing in the Plan is not the same as investing in
shares of the companies that make up the Index. You will
not receive dividends or distributions from the
companies included in the Index. Furthermore, because
the potential Redemption Bonus of the Plan is fixed, you
may receive a lower return than if you invested directly
in the shares.
Charges and loss
of interest when transferring an existing ISA
If you transfer an existing ISA your ISA Manager may
charge you an exit fee, and it will take some time for
the funds to be transferred. You will not receive
interest on your money between the time you transfer out
of an existing ISA until the Investment Start Date.
Although early investors receive a discount on the
purchase price of the securities in the Plan, this may
be worth less than the interest or growth you could
otherwise have received.
Tax regulations
may change
Tax rates and the basis of taxation are subject to
change, and the value of tax reliefs depends on your
personal circumstances. Specifically, the favourable tax
treatment of ISAs may change in the future.
Administration and Custody risk
During the Investment Term, the Plan’s Investments are
held in safe custody accounts operated by the
Administrator, Bank of New York Mellon, and registered
in the name of a Nominee. Although the Investments are
protected in case of insolvency or default of the
Administrator and Plan Manager, in the event that the
Administrator or Plan Manager suffers fraud or other
criminal misconduct, there could be a delay in returning
your Capital and any applicable Redemption Bonus.
The Issuer
The Plan Manager will purchase on your behalf warrants
issued by UBS AG (London Branch). The warrants are
effectively a loan to the Issuer, in return for which,
instead of receiving interest, you will receive
the performance specified in the terms of this Plan. As
with any loan, the return of your Capital relies on the
ability of the Issuer to repay it. Should the Issuer be
unable to repay your Capital (for example if it goes
bankrupt), you may lose all of your Capital, regardless
of how the Index has performed. It is you, and not the
Plan Manager, who bears this credit risk.
Please refer to the Brochure and the Terms & Conditions for full
details. |
