Important Information

Counterparty/Credit risk

This is the risk associated with the ability of the Counterparty to pay any Growth and repay the investment. The Counterparty is Morgan Stanley

• Money will be invested in listed Securities issued by the Counterparty. If a Counterparty fails (e.g. becomes bankrupt or goes into administration) this will affect both the payment of the Growth Payment and the return of Investment Capital at the end of the Investment Term.

• The Financial Services Compensation Scheme will not pay compensation should a Counterparty failure be the sole reason for loss.

• The credit rating of the Counterparty can change at any time during the offer period and the Investment Term.

• The Capital Protection feature does not protect investors from Counterparty/Credit Risk.


Investment risk

This is the risk associated with the performance of the underlying.

• Investing in this product puts investors’ money at risk. Investors may lose some or all of their investment.

• The return of Investment Capital is not guaranteed. This will depend on the performance of the Underlying and could be less than the amount invested.

• The Growth Payment is not guaranteed. This will depend on the performance of the Underlying.

• 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 invests in a specific sector or market, it can have a narrow focus, which means it will be more risky than assets investing broadly across several sectors or 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 the investment.

• Investments will not benefit directly from any appreciation in the price of the Underlying or from dividend income from companies where the Underlying is linked to equities.

• The growth potential from this product is capped at a maximum. Any additional growth in the Underlying will not lead to additional returns from this product.

• Market volatility could have a considerable impact on the performance of the Underlying and a subsequent impact on the level of the Growth Payment.


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 investment is cancelled after the Start Date, it is likely that an amount less than the Investment Capital will be returned.

• The value of investments redeemed before the End Date will depend on the prevailing price of the Securities and could be less than the Investment Capital.

• There is no guarantee that investors will be able to redeem their investments before the End Date.

• There is no assurance that there will be a secondary market in the Securities. An investment in the Securities should be viewed as a medium to long-term investment. Although Morgan Stanley may offer to buy and sell Securities in the secondary market during their investment term, Morgan Stanley may cease to undertake any such market making activities at any time at its sole discretion 

• The Capital Protection feature only applies if the investment is held until the End Date. The Capital Protection feature does not protect investors from Counterparty/Credit Risk.

• Tax assumptions are based on Gilliat Financial Solutions’ and Meteor Asset Management’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.

• This product is not the same as a bank or building society account where capital is guaranteed and, with instant access accounts, is readily available without penalty.

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

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

• Your Investment Capital will be tied up for the full Investment Term.

• Inflation will affect the future buying power of both the Growth Payment and the value of the Investment Capital.

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