Risk Factors

RISK FACTORS

The Plan may be suitable for you if:

• You want a full return of your initial deposit at maturity

• You are looking for an investment linked to the performance of stock markets

• You do not need access to your money over the next 5 years

• You want a tax-efficient investment using your ISA allowance or via a SIPP/SSAS

• You have a minimum of £1,500 to invest

The Plan may not be suitable if:

• You want a regular income and dividends

• This is your only source of income

• You may need immediate access to your money before maturity

• You cannot commit to the full Investment Term

• You want a guaranteed return on your investment

• You want to add to your investment on a regular basis

• You do not want to invest in a UK onshore asset that is subject to UK tax rules

Important information to consider

• Income payments are based on the performance of the FTSE 100 and are therefore not guaranteed.

• For either version, if you redeem your Plan before the end of the term, you may get back less than the amount you originally invested. The value of the Plan will be determined by the price at which the Plan can actually be sold on the relevant Dealing Date.

• When we receive your money for either version, it will be deposited into a Client Money account at HSBC Bank plc (‘HSBC’) until the Strike Date. In the event of HSBC’s insolvency during this period, your money will not be protected and you must rely on your right of recourse to the Financial Services Compensation Scheme (the ‘FSCS’), which provides limited protection to deposit holders. Please see pages 9 and 11 of the plan brochure for further details on the FSCS.

• For the Investec version – In the event of Investec Bank plc’s insolvency after the Strike Date your deposit may not be returned by Investec Bank plc and you must rely on your right of recourse to the FSCS. Please see pages 9 and 11 of the plan brochure for further details on the FSCS.

• For the Lloyds version – In the event of Lloyds’ insolvency after the Strike Date your deposit may not be returned by Lloyds TSB Bank plc and you must rely on your right of recourse to the FSCS. Please see pages 9 and 11 of the plan brochure for further details on the FSCS.

• Inflation may reduce what you could buy in the future.

• The tax treatment described in this Plan brochure could change at any time.

• The use of averaging to calculate the Payment Index Levels can reduce the adverse effects of a falling market or sudden market falls. Equally, it can reduce the benefits of an increasing market or sudden market rises.

• If you invest in this Plan you will forego interest that could have been earned by investing elsewhere.

• Past performance of the FTSE 100 should not be seen as an indication of future performance.

• Non-UK tax resident investors may incur a UK tax charge on this Plan as the Investment is a UK asset that is subject to UK tax rules.

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