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RISK FACTORS |
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Is
this product right for me?
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This product may be suitable for you if:
• I am willing to invest
for a set period of time, known as the investment
term; (see pages 2 & 6 of the plan brochure)
•
I am not likely to need access to my money during the
investment term; (see page 9 of the plan brochure)
•
Although the Plan might pay out early I understand this is a
five-year investment; (see pages 6 & 12)
•
I want the potential to benefit from any rises in the
Indices but do not want to invest directly in HSCEI and
iShares Brazil Index Fund; (see page 11 of the plan brochure)
•
I know that the value of the Indices can fall as well as
rise; (see page 8)
•
I understand that although the assets will be provided by
BNP Paribas, a major financial institution with a current
credit rating from Standard & Poor’s or equivalent of ‘AA’,
there is a chance that they may default on the payments due
and this means that I may lose some, or all, of my
investment, known as the counterparty risk; (see pages 3, 4,
5, 9
& 12)
•
I am satisfied with a potential return of 12.20%p.a. (not
compounded) and accept the fact that if the Indices were to
rise more than this I would not benefit from any growth
above that provided by the Plan (see pages 6, 9 & 12 of the
brochure)
•
I am prepared and can afford to accept the investment risks;
(see pages 7, 9 & 12) |
What are the risks involved with investing?
• The investment
return you receive will depend on the performance of the HSCEI & the
iShares Brazil Index Fund and it is possible that you might not
receive any investment return at all. Please see the ‘How are my
returns calculated?’ section on page 6 of the plan brochure.
• If the early maturity conditions are achieved you will receive 12.20%
(not compounded) for each year the Plan has been in force and the
Plan will mature. This means that you will need to consider
reinvestment options available at that time.
• If the Indices have grown by more than this you will not receive
the benefit of any growth over the predetermined levels stated.
• The payment and timing of the maturity proceeds will depend on the
closing levels of the Indices on the measurement dates, as set out
in the ‘How are my returns calculated’ section on page 6 of the
brochure. The Plan may therefore be affected by short-term market
fluctuations.
• The capital return at maturity will also depend on the performance
of the Indices and it is possible that you could lose some, or all,
of the amount you invest. The capital return will be affected if the
Final Level of one or both of the Indices is more than 40% below its
Opening Level. Please see the ‘How is the capital return
calculated?’ Section on page 7 of the brochure.
• If your circumstances change and you need to withdraw your
investment early we will have to sell your Securities back to the
Issuer and the value will depend on the price they are prepared to
pay. You will also have to pay an administration charge. You should
note that while BNP Paribas intends to make a secondary market a
material change in market or corporate conditions could affect this.
This means that in certain circumstances it may not be possible for
you to encash early.
• When you invest in the Plan, we will use your money to acquire, on
your behalf, Redeemable Preference Shares (“Securities”) which are
designed to have the characteristics required to achieve the
investment objectives of the Plan. The Securities will be issued by
BNP Paribas which has a current credit rating of AA by Standard and
Poor’s. As with any similar investment the security of your Plan is
ultimately dependent on BNP Paribas making to us the payments due
from the Securities to allow us to pay you any investment return and
any repayment of your investment capital. If BNP Paribas were to
fail to meet the repayments due you would lose some, or all, of
your investment.
• The actual and perceived ability of BNP Paribas as issuer to meet
its obligations may affect the market value of the investment over
the term. If BNP Paribas fails to make the payments due to us, you
may get back less than is due to you or nothing at all. In addition,
the terms of the investment may permit BNP Paribas as issuer to
delay, reduce or withhold payments. These provisions are not
intended to circumvent what is legally due to investors but are
intended to cover unforeseen events which affect your return. For
example, a suspension or delay in calculating the Index level,
errors in calculation or changes to the way the Indices are
calculated.
• If you tell Meteor that you want to cancel your investment after
they
have bought the Securities you will only get back the value of the
Securities when they sell them, which is likely to be less than your
original investment.
• The values of any tax reliefs will depend on your individual
circumstances. You should note that the levels and bases of taxation
could change in the future.
Please refer to the Brochure and the Terms & Conditions for full
details.
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