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Is this product
right for you? |
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This Plan may
be suitable if:
You understand that the Plans returns are linked to the
performance of the SBE Index which may fall as well as rise.
You understand that any growth payment and the return of
your capital at maturity of the Plan on 15 September 2015
depend on the continuing solvency of the Issuer.
You are comfortable with the fact that your capital may not
be returned in full at the end of the term of 5 years 3
weeks.
You want your investment to provide capital growth rather
than income.
You understand that your investment in the Plan will NOT
provide you with income.
You can afford to leave your money invested in the Plan for
the next 5 years 3 weeks.
You understand that you may not be able to cash in the Plan,
but that if you can and do cash in your investment in the
Plan before 15 September 2015 the sum you will get might not
reflect the performance of the SBE Index to the date you
cash in and could be less than the amount you invested in
the Plan.
You are a UK resident.
You have £5,000 or more to invest. |
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This Plan may not be suitable if:
You do not want an investment whose return is linked to
the performance of the SBE Index which may fall as well as
rise.
You do not feel comfortable with the fact that any growth
payment and the return of your capital at maturity of the
Plan on 15 September 2015 depend on the solvency of the
Issuer.
You cannot afford to risk your capital.
You require income from your investments.
You require access to your money during the investment term
of 5 years 3 weeks.
You do not have other savings or investments that are easily
accessible to cover emergencies.
You want to add to your investment from time to time or at
regular intervals.
You do not feel comfortable that your investment will
ultimately depend on the security of the Issuer of the
underlying investments.
You do not have at least £5,000 to invest.
You are not a UK resident and therefore are not permitted to
invest into the Plan.
You are unsure how the Plan works..
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Things to consider
Investing in the
Plan puts your money at risk. You may lose some or all
of your investment.
The overall return on your investment in the Plan will
depend on the performance of the SBE Index. Past
performance is not an indication of future performance
and should not be used to assess the future returns or
the risks associated with your investment.
Plan returns do not include any returns from dividend
income or participation in corporate actions, as would
be the case if you invested directly in the shares
underlying the SBE Index. Accordingly, the return on the
Plan may, in some cases, be less than the return from a
direct investment in the shares which make up this
index.
You may lose all of your investment if the Issuer
becomes insolvent (this is known as Counterparty Risk).
Money invested in the Plan will buy securities issued by
the Issuer. If the Issuer becomes bankrupt or goes into
administration or enters into any other insolvency
process the payment to you of both your growth payment
and your capital on maturity will be affected.
The financial strength and rating of the Issuer may
change at any time.
Neither the Financial Services Compensation Scheme nor
Merchant Capital Limited will pay compensation in the
case of the insolvency of the Issuer. You will only be
able to claim from the Financial Services Compensation
Scheme if Merchant Capital Limited fails to meet its
liability to you.
The Plan does not protect you in the event of the
failure or insolvency of the Issuer.
Your circumstances could change, forcing you to cash
in your investment in the Plan early. In this case the
sum you will get back will be calculated as set out in
the section entitled "Can I cash my investment before 15
September 2015?" on page 10 of the brochure and may be
less than the amount you invested in the Plan.
If you exercise the right to cancel after the
securities have been purchased (please refer to "What
happens if I change my mind about investing?" on page 9
of the brochure for more information on your right to
cancel) you may not get back your investment in full.
If you choose to make an ISA transfer into the Plan
you might have to pay an exit charge to your current ISA
provider and could lose some investment growth from your
current ISA if the market rises while the transfer is
being carried out.
The levels and basis of taxation and reliefs from
taxation can change at any time. The value of any tax
reliefs and your liability to tax depend on individual
circumstances. Tax assumptions are based on Merchant
Capital Limiteds understanding of current legislation
and practice, which may change in the future.
Please refer to the Brochure and the Terms & Conditions for full
details. |
