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RISK FACTORS |
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If the following statements
apply to you then an investment in the plan may be
appropriate:
•
I am looking for pre-defined
returns that are dependent on the performance of the FTSE
100 Index and am willing to give up any returns on the FTSE
100 Index that are higher than the pre- defined returns.
•
I expect the FTSE 100 Index to
have moderately positive performance over the next 6 years,
but with no firm view on timing.
•
I wish to protect my
investment against adverse movements in the FTSE 100 Index
down to a given level. However I am prepared to risk losing
some or all of my investment should the FTSE 100 Index fall
by 50% or more at any point during the six-year term.
•
I am willing to invest for the
full six year term in order to achieve the returns described
in the brochure (although understand that in some
circumstances I can exit and receive a fixed return early,
even after just one year).
•
I wish to invest in a tax efficient
plan that is eligible under UK ISA rules. Alternatively, I
want to invest in a plan that is taxed as capital gains
rather than income, to use my Capital Gains Tax annual
exemption.
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If the following statements
apply to you then an investment in this plan may not be
appropriate:
•
I
am not prepared to put my capital at risk.
•
I may
need access to my capital before the end of the investment
term and do not want to take the risk that the amount I
receive from selling my investment in the plan is less than
my initial investment.
•
I am
looking for a regular income on my investment.
•
I do not
want to take the risk that I earn no return on my
investment. |
Additional Risk Factors
•
The return on your investment is dependent on the
performance of the FTSE 100 Index. The past performance of
the Index is not necessarily a guide to its performance in
the future and there is no certainty that the future
performance of the Index will be positive.
• The returns of your Plan are calculated based on the
Initial Index Level and the Index Level recorded on the
Observation Dates only. Sudden index movements on the dates
that these levels are recorded could affect the performance
of your Plan.
•
The return on your investment is a pre-defined amount. If
the FTSE 100 Index were to perform strongly over the
investment term, the returns you receive may be less than
you would have received from an investment linked directly
to the positive performance of the Index.
• Plan returns do not include any returns from dividend
income or participation in corporate actions, as would be
the case if you invested directly in the shares underlying
the FTSE 100 Index. Accordingly, the return on the Plan may,
in some cases, be less than the return from a direct
investment in these shares. Also, unlike direct investments
in the index, investors are not able to hold the Plan beyond
its stated maturity date in the expectation of a recovery in
the price of the Index.
•
There may
occasionally be circumstances that interfere with the
calculation of the FTSE 100 Index. For example, the
calculation of the index may be delayed or prevented if some
of the shares that comprise the index are suspended from
trading on the London Stock Exchange. In such cases, the
return on the plan may need to be adjusted and may be more
or less than might otherwise have been the case.
• It is usually possible to sell your Plan prior to
maturity, or the Kick Out feature being triggered. However,
the proceeds you receive will depend on many market factors,
including, but not limited to, the index level, interest
rates and the credit rating of the UK government.
Consequently, investors selling prior to maturity or the
Kick Out feature being triggered may receive less than their
initial investment.
•
The Plan is not the same as a bank or building society
account where capital is guaranteed and readily available
without penalty. There is a risk that the issuers of the
securities behind the plan may not be able to meet their
obligation to pay the advertised returns or to repay
investment capital both during and at the end of the
investment term.
Please refer to the Brochure and the Terms & Conditions for full
details. |
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