RISKS • The Plan provides the po

RISK FACTORS

Is this product right for you?

This Plan may be suitable if:

• You understand that the Plan’s returns are linked to the performance of the FTSE 100™ Index.

• You understand that the income payments and return of your capital at maturity of the Plan on 16 September 2016 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 6 years 4 weeks.

• You want your investment to provide income rather than capital growth.

• You understand that your investment in the Plan will NOT provide you with capital growth.

• You can afford to leave your money invested in the Plan for the next 6 years and 4 weeks.

• You understand that if you cash in your investment in the Plan before the maturity date the sum you will get might not reflect the performance of the FTSE 100™ Index to the date the cashing in takes place 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.

This Plan may not be suitable if:

• You do not want an investment whose return is linked to the performance of the FTSE™ 100 Index which may fall as well as rise.

• You do not feel comfortable with the fact that the income payments and return of your capital at maturity of the Plan on 16 September 2016 depend on the solvency of the Issuer.

• You cannot afford to risk your capital.

• You require capital growth from your investments.

• You require access to your money during the investment term of 6 years 4 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.

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 FTSE 100™. Past performance is not an indication of future performance and should not be used to assess the future returns of the risks associated with your investment.

• 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 income payments 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 16 September 2016?" on page 10 of the plan 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 plan 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 Limited’s understanding of current legislation and practice, which may change in the future.

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