Important Information

Counterparty/Credit risk

This is the risk associated with the ability of the Counterparty to meet its obligations to pay the Interest Payments and to repay Capital. The Counterparty is The Royal Bank of Scotland plc (RBS).

• If RBS fails (e.g. becomes bankrupt or goes into administration) this will affect the return of Capital and the payment of Interest. Investors could lose all of their initial Capital and not receive any Interest.

• The level of cover offered by the Financial Services Compensation Scheme (FSCS) is limited to £50,000 per person across all accounts they hold with RBS. Investors with more than £50,000 with RBS will only receive compensation up to a maximum of £50,000 and the balance will not be covered by the FSCS. Please refer to the section “Compensation scheme” on page 23 of the brochure for more details.

• The credit rating of RBS may change at any time. Please refer to page 2 of the Term Sheet for more details.


Investment risk

This is the risk associated with the Underlying. The Performance Based Interest is linked to the performance of the  Underlying so it is important that investors are aware of the risks associated with the Underlying:

• The Performance Based Interest is variable and will depend on the performance of the Underlying. If the End Value is less than the Start Value then no Performance Based Interest will be paid.

• The rate of Performance Based Interest paid is equivalent to only half of the final measured performance in the Underlying as explained in the section “Product returns” on page 9 of the plan brochure.

• Market volatility could have a considerable impact on the performance of the Underlying and a subsequent impact on the level of Investment Based Interest paid.

• External factors can cause an entire asset class to fall in value. For example all shares could fall at the same time. This is called market risk and could affect the performance of the Underlying.

• If the Underlying tracks the performance of developing markets or regions, it may carry a higher risk than investing in larger, more established markets. Investments in emerging markets are likely to experience greater volatility. i.e. they could be subject to sudden and extreme fluctuations in the price.

• If the Underlying tracks the performance of a specific market sector, it can have a narrow focus, which means it will be more risky than assets investing broadly across a marketor markets.

• Past performance is not an indication of future performance and should not be used to assess the future returns or the risks associated with this product.

• Investments will not benefit from any dividend income from companies where the Underlying is linked to equities.

• The use of Averaging in calculating the End Value of the Underlying may lessen the effect of rising markets during the Averaging period.

• The historic relationship between performance and volatility used in the RBS Indices (the Underlyings) to enhance performance may not continue and this may have an impact on the performance of the Index.


Other risks

These are other risks associated with changes in the personal circumstances of investors and other factors which may affect the future value of the product.

• If the product is cancelled after the Start Date and before the End Date, it is likely that an amount less than the original Capital will be repaid.

• If an ISA investment is cancelled it may not be possible to invest in another ISA for that tax year.

• In normal market conditions, it is expected that RBS will provide pricing of deposits for Investors who need access to their Capital before the End Date. However, there is no guarantee that investors will be able to redeem their investments before the End Date.

• Tax assumptions are based on Gilliat’s and Meteor’s understanding of current legislation and practice as at the date of this document. The levels and bases of taxation and reliefs from taxation can change at any time and could be applied retrospectively.

• The 50/50 Deposit Series is not the same as an instant access bank or building society account where capital is readily available without penalty.

• ISA Transfers could incur a transfer charge and a loss of potential gains including interest whilst the transfer is pending.

• Inflation will affect the future buying power of both the interest and the value of the Capital.

• Half of the Capital will be tied up for the period of the full Term.

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