Protected FTSE Plan

Capital protected investment with potential for 45% growth payment at maturity

This plan is closed to new applications.

  • Capital protected against market falls
  • Investment returns linked to the performance of the FTSE 100™('the Index')
  • If the Final Level of the Index is at or above its Opening Level the Plan will provide at maturity a full repayment of your capital plus a growth payment of 45%
  • The capital and investment return of the Plan is dependent on the counterparty being able to make the payments due from the Plan
  • The counterparty is the Royal Bank of Scotland ("RBS"), which has a Standard & Poor's long term credit rating of 'A' as at 18 January 2010
  • Available until 22 February 2010

Target Market

This investment could be suitable as part of an investment portfolio for investors who

  • understand and are used to equity based investments, and
  • are able to invest for a period of up to 6 years, and
  • are prepared to accept that should the Index increase by more than 45% they will not benefit from any growth above that pre-defined by the Plan, and
  • are aware there is a risk that RBS could fail to make payments due to us (counterparty risk)

Key Facts

Investment Term     

6 years and 14 days capital protected investment with the potential to pay a growth payment of 45% on mturity if the Final Level of the Index is at or above its Opening Level.

Availability      

As direct investments, ISAs, ISA transfers (including former PEPs), and for pension funds, trustees and companies.

Index     

FTSE 100™

Investment Return     

If the Final Level of the Index is at or above the Opening Level, the Plan will provide a growth payment of 45%.

If the the Final Level of the Index is below the Opening Level no growth payment will be payable.

Please note that if the Final Level of the Index has increased by more than 45% above the Opening Level, you will only receive the 45% growth provided by the Plan.

Counterparty Risk     

The securities will be issued by RBS, a major financial institution with a long term credit rating of 'A' by Standard and Poor’s as at 18 January 2010. The credit rating is subject to change during the offer period and the term of the investment.

If the financial institution were to fail to meet the repayments due to you, you could lose some or all of your investment. Counterparty risk is common to all similar investments.

Tax     

Under current tax legislation gains on assets held in an ISA will be free from any tax, while gains on direct investments will be subject to Capital Gains Tax. Details of ISA & PEP scheme merger & other changes are available on the HMRC website.

Interest     

Interest will be credited on subscriptions received and held in our client account up to the investment date, subject to a de minimis limit of £10.

Charges     

There are no initial or ongoing charges. Charges are included in the pricing of the investment.

Early encashments and transfers during the investment term will be subject to an administration charge.

Commission     

3%

Securities     

Securities will be structured to provide the returns shown in the plan brochure, and purchased for each investor. These may be notes, warrants, shares or deposits depending on the nature of the investment.

Key Dates

Offer period

Closed

ISA transfers

Applications must be received by 15/01/2010

Start date

26/02/2010

Opening level

26/02/2010

Final level

26/02/2016

Maturity date

11/03/2016