Risk Factors

RISK FACTORS

Is this product right for me?

The Plan may be suitable for you if:

• You will not need access to your Capital for three years.

• You would like to potentially receive growth from your Capital.

• You want the potential for a defined return.

• You have a minimum of £5,000 to invest.

• You are prepared to lose some or all of your Capital.

The Plan may not be suitable if:

• You do not have readily accessible spare cash for emergencies.

• You may need access to your capital before the Investment End Date in three years’ time.

• You want to add to your investment from time to time or at regular intervals.

• You do not want your returns linked to stock market performance.

• You are not prepared to accept any risk to your capital.

What are the risks involved with investing?

• Your capital is at risk. You could lose some or all of your capital. Unless you understand these risks and are sure of the suitability of this investment for you, then you should take financial advice.

• You should only invest in this Plan if you do not need access to your money for the full Investment Term of three years. Early encashment may result in loss of capital.

• The Plan is designed to provide you with a fixed level of return which is dependent on the performance of the FTSE™ 100 Index. In order to achieve this level of return, your Capital will be put at risk if the Index falls by more than 50% during the term of the investment.

• The Plan is subject to maximum growth potential and does not invest directly in the shares of any FTSE™ 100 companies and therefore does not receive dividends from those companies; as such the returns could be lower than if you invested directly in the shares of the Index.

• If the institution issuing the underlying securities of the Plan, HSBC Bank plc, were unable to meet its obligations, you could lose some or all of your investment. As with all similar structured investments, in the event of Issuer insolvency you will not have recourse to the Financial Services Compensation Scheme. It is you the investor who faces these risks rather than the Plan Manager, Walker Crips Structured Investments.

• The Plan is not the same as a deposit account. A deposit account is considered a relatively safe way to invest and normally allows you ready access to your money. The Annual Growth Plan gives you the potential to benefit from enhanced returns linked to the FTSE™ 100 Index; however your total return could be lower than you would have received in a deposit account.

Please refer to the Brochure and the Terms & Conditions for full details.