The FTSE 100 and RPI Combination Plan is designed for the investor who is looking for a 5 year investment with a yearly payment fully linked to UK inflation via its core measure, the Retail Prices Index (RPI) and who is willing to accept a risk to their initial investment.

The objective of the Plan is to deliver a yearly payment which is fully indexed to UK inflation via its core measure, the Retail Prices Index (RPI), and to return, at maturity, an amount equal to 100% of the initial Plan investment. If the FTSE 100 Index falls below 50% of the Initial Index Level at any point during the Investment Term, and the Final Index Level is less than the Initial Index Level at the Plan Maturity Date, the initial investment will be at risk. The initial investment will be at risk on a one-for-one basis for any percentage point fall in the Final Index Level as compared to the Initial Index Level. If, however, the FTSE 100 does not fall below 50% of the Initial Index Level, the maturity payment of an amount equal to100% of the initial Plan investment will be protected (please refer to tables on pages 7 and 11 of the brochure).

• 5 yearly payments equivalent to 7.5% of the initial investment plus full indexation to UK inflation (RPI) regardless of the FTSE 100 performance.

• Investment allocation between deposits and medium term notes to deliver tax efficient returns.

• Maturity payment of an amount equal to 100% of the initial investment provided the FTSE 100;

a. does not halve at any point during the Investment Term, or,

b. halves during the Investment Term but recovers such that the Final Index Level is equal to or more than the Initial Index Level at the Maturity Date.

The Plan investments will differ for non-ISA and ISA investors.

What are the ways in which you can invest?

There are several ways to invest in the Plan and you can choose any or all of these:

• Direct investment

You can invest between £1,500 and £1,000,000 directly into the Plan. Returns may be subject to Capital Gains Tax.

• Using your ISA allowance

You can invest using your stocks and shares ISA allowance (up to £7,200, subject to the minimum of £1,500), if you have not already used all, or part of it, in this tax year. In each tax year you may only subscribe to one stocks and shares ISA. ISAs are only available to individuals who are resident and ordinarily resident in the UK, restrictions may apply.

• Transferring an existing cash ISA investment into the Plan

The minimum you can transfer from an existing cash or stocks and shares ISA is £1,500, up to a maximum of £1,000,000. You can also transfer as many existing investments as you wish but there may be exit or associated charges from your existing ISA manager.

• Other ways to invest