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Key Dates | |
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Plan Closes: 12 February 2010 |
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| Download Application Forms |
Last ISA Transfers: 26 January 2010 |
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| Download Jubilee Terms & Condtions | ||
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Plan Summary
The Early Redemption Plan is an investment designed to offer the potential for early return of Capital together with an attractive Redemption Bonus of 8.25% for each year elapsed since the Investment Start Date. The Plan pays no income during the Investment Term. Instead, it offers the potential for return of Capital together with a Redemption Bonus if on any of the Redemption Dates the Index Level is at or above the Initial Index Level. If there is no Early Redemption, the Maturity Date will be March 9th, 2015. Capital is at risk, subject to Index Level and financial strength of the Issuer Capital may be reduced at Maturity if the Index Level closes at or below 50% of the Initial Index Level on any trading day during the Investment Term and is still below Initial Index Level on the Investment End Date. Return of your Capital is also dependent on the financial strength of the Issuer - if the Issuer becomes bankrupt before the Maturity Date, you will lose most or all of your Capital, and may not be able to claim under the Financial Services Compensation Scheme. Returns treated as capital gains The returns are expected to be treated as capital gains, and subject to Capital Gains Tax, under current tax legislation. See the section titled “Tax” on page 11 of the plan brochure for further details. Your money is invested in securities of the Issuer, not directly in the Index The Early Redemption Plan will invest in warrants of the Issuer, which are listed on the Luxembourg Stock Exchange, and are a form of loan from you as an investor to a single financial institution, UBS AG. The Plan does not invest directly in the shares that make up the Index. This means you will not receive dividends from the shares in the Index, and the return of your capital depends on the Issuer as well as on the performance of the Index. Your investment is not covered by any guarantee scheme Compensation arrangements under the Financial Services Compensation Scheme are limited to paying claims (for a limited amount only) to cover losses you may incur if you are missold the Plan by your financial adviser or the Plan Manager, or in case of a loss due to the bankruptcy, fraud or administrative error of the Plan Manager. See page 13 of the plan brochure for details. |
