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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 am willing to risk losing part or all of my capital if
the Final Index Level is less than or equal to 50% of the
Initial Index Level.
• I do not want a regular income from my investment.
• 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.
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No ,
this plan probably isn’t right for me
because:
• I cannot afford to lose part or all of my
investment.
• I do not have other funds available for emergencies, and
can’t risk having to sell the Plan at a loss before the
Maturity Date.
• I need a regular income from my investment.
• I do not have £3,600 to invest.
• 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
If the Index
closes at a level less than or equal to 50% of the
Initial Index Level on the Investment End Date, the
Capital returned to you will be reduced. See the
“Returns” section of the plan brochure for details.
No
income during the Investment Term
The Plan does not
pay any income during the Investment Term, only a
potential growth payment at the Maturity Date.
Loss due to early withdrawal
Your circumstances
could change during the Investment Term, forcing you to
withdraw from the Plan before the Investment End Date.
In this case, you could lose some of the money you
invested. See “Can I withdraw my money?” on page 11 of
the brochure.
Potential returns are limited
The Plan will pay
a return equal to three times the growth in the Index
during the Investment Term, up to a maximum of 16.667%
growth giving a 50% return. If the actual growth of the
Index is greater than 50%, the payment investors receive
will be less than would have been paid by an investment
that does not limit returns.
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
investment return of the Plan is limited, 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.
Risk of default by the Issuer and Counterparty
Investing in the
Plan is not the same as putting your money in a deposit
account, and the Plan is not directly covered by a
deposit guarantee scheme. Your money will be invested in
investments with terms designed to meet the investment
objectives of the Plan.
The Plan Manager intends to select and purchase on your
behalf preference shares. It is expected that the Issuer
of such preference shares will use the proceeds of the
issue to purchase securities issued by KBC IFIMA NV,
whose obligations are guaranteed by KBC Bank NV. No
representation or warranty regarding the accuracy,
completeness or adequacy of such information and no
liability to any party is accepted by KBC Bank in
connection with such information.
As at 15th June 2009 the longer term unsecured senior
debt of KBC Bank NV was rated A by Standard & Poor’s,
Aa3 by Moody’s and A by Fitch. These ratings may be
subject to change prior to the maturity of your Plan.
Neither KBC Bank NV nor any of its affiliates in any way
endorses the Plan, its suitability for investors or the
promotional material associated with the Plan and does
not make any representation or warranty regarding the
accuracy, completeness or adequacy of such information
and no liability to any party is accepted by KBC Bank NV
in connection with such information.
The return of your
Capital and any Growth will depend on the ability of the
Issuer and the Counterparty of the securities to meet
this and other financial commitments. It is you, and not
the Plan Manager, who bears this credit risk, and in the
case of default you may lose
some or all of your Capital.
Please refer to the Brochure and the Terms & Conditions for full
details. |
