Investment Risks

• The Plan provides the potential for a higher level of capital growth relative to current market conditions. The ability to provide the potential for a higher level of capital growth is achieved by exposing your capital to risk. On maturity you may not receive back the original capital invested.

If the closing level of the Index on any Business Day is less than 50% of the Starting Index Level from 6 August 2008 up to and including 5 August 2014 it is likely to lead to the erosion of your initial capital investment.

In the event of a fall of greater than 50% of the Starting Index Level and if the Final Index Level is less than the Starting Index Level, you will receive no growth. You will also lose 1% of your original capital for every 1% that the Final Index Level is below the Starting Index Level. Where the difference is a fraction of 1% the fraction will be applied. See page 5 of the brochure for further details.
 

• Your circumstances could change, forcing you to encash your Plan investments early. If this happens, 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 Investments can actually be sold on the relevant Dealing Date. See ‘What happens if I cash my investment in early?’ on page 9 of the brochure.
 

• The investment requires the purchase by the Plan Manager of one or more securities with a fixed maturity date. These will be held on your behalf and will have been specifically structured to match the Investment Objectives of the Plan.

The Issuer of the Securities’ capacity to meet its financial commitments is considered strong. This is supported by an independent assessment from a leading credit rating agency, Standard & Poor’s, which gives the Issuer a rating of A+, as at 3 June 2008.

However, there is a risk that the Issuer may fail to meet its obligations and it is you, the Investor, that faces this risk rather than the Plan Manager.

• The terms of the investment may permit the issuer of those investments to withhold, defer, reduce or even terminate payments in certain events, as a result of which you may receive less than you would otherwise or may have to wait for the proceeds.

• The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depend on individual circumstances. The favourable tax treatment of ISAs (and any previous PEPs, now known as ISAs) may not be maintained in the future.

• Consideration given prior to making a transfer of existing investments should include the exit and associated charges of transferring your existing investments and the potential for loss of income or growth whilst the transfer is pending and whether the risk to capital in this Plan is suitable.

• It is important to understand that this Plan does not include the security of capital which is offered under a deposit with a bank or building society.

• The FTSE™ 100 Index is a capital-only index and takes no account of dividend returns. As a result you will not receive any dividend payments or distributions.

• The growth and capital return received under this Plan is dependent on the Final Index Level which is the arithmetic average of the closing levels of the FTSE™ 100 Index on each business day from and including 5 July 2014 to 5 August 2014. This can reduce the adverse effects of a declining market or sudden market falls shortly before maturity or conversely reduce the benefits available in an increasing market or sudden market rises shortly before maturity.

• Careful consideration should be given to the benefits and risks of this Plan and its suitability to your own personal circumstances and attitude to risk.
 
Please refer to the  Brochure and the Terms & Conditions for full details.