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RISK FACTORS |
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Is
this product right for me?
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This product may be suitable for you if:
I am willing to invest
for a set period of time, known as the investment
term; (see pages 2 & 4 of the plan brochure)
I am not likely to need access to my money during the
investment term; (see page 7 of the plan brochure)
I understand this is a 6 Year investment; (see pages 5 &
10 of the brochure)
I want the potential to benefit from any rises in the
Indices but do not want to invest directly in FTSE100; (see page
6)
I know that the value of the Index can fall as well as
rise; (see page 6)
I understand that although the assets will be
provided by The Royal Bank of Scotland plc, a major
financial institution with a current credit rating from
Standard & Poors or equivalent of A+, there is a chance
that they may default on the payments due and this means
that I may lose some, or all, of my investment, known as the
counterparty risk; (see pages 4, 5, 9 & 12 of the brochure)
I understand the different compensation arrangements for the
two versions of the Plan (see pages 4, 7 & 10 of the plan
brochure).
I understand the different compensation arrangements for the
two versions of the Plan (see pages 4, 7 & 10 of the
brochure)
I am satisfied with a potential return of 45% and accept the
fact that if the Index was to rise more than this I would
not benefit from any growth above that provided by the Plan
(see pages 5 & 7of the plan brochure)
I am prepared and can afford to accept the investment risks;
(see pages 3, 7 & 10 of the brochure) |
What are the risks involved with investing?
The investment
return you could receive will depend on the performance of the
FTSE100 and it is possible that you might not receive any investment
return at all. Please see the How are my returns calculated?
section on page 5 of the plan brochure.
If the necessary conditions are achieved you will receive a 45%
growth payment.
If the necessary conditions are not achieved no growth will be
payable.
If the Index has grown by more than this you will not receive the
benefit of any growth over the predetermined levels stated.
The payment and timing of the maturity proceeds will depend on the
closing level of the Index on the measurement date, as set out in
the How are my returns calculated section on page 5 of the
brochure. The Plan may therefore be affected by short-term market
fluctuations.
If your circumstances change and you need to withdraw your
investment early we will have to sell your Securities back to the
Issuer and the value will depend on the price they are prepared to
pay. You will also have to pay an administration charge. You should
note that while RBS intends to make a secondary market a material
change in market or corporate conditions could affect this.
When you invest in the Plan we will invest, on your behalf, in
Securities with RBS. The Securities have the characteristics
required to achieve the investment objectives of the Plan. RBS has a
credit rating of A+ by Standard and Poors as at the date of this
brochure. As with any similar investment the security of your Plan
is ultimately dependent on RBS making to us the payments due from
the Securities to allow us to pay you any investment return and any
repayment of your investment capital. If RBS were to fail to pay the
amounts due, you could lose some, or all, of your investment.
If you make a direct investment and RBS were to fail to meet the
repayments due, it is our understanding that you would be able to
claim compensation from the FSCS up to the FSCS limit. If you invest
via an ISA you will not be entitled to compensation for the sole
reason that RBS fail to make the repayments due. It is therefore
possible that you could lose some or all of your investment and any
returns that otherwise would have become payable from the Plan.
The actual and perceived ability of RBS as issuer to meet its
obligations may affect the market value of the investment over the
term. If RBS fails to meet its obligations, you may get back less
than is due to you or nothing at all. In addition, the terms of the
investment may permit RBS as issuer to delay, reduce or withhold
payments. These provisions are not intended to circumvent what is
legally due to investors but are intended to cover unforeseen events
which affect your return. For example, a suspension or delay in
calculating the Index level, errors in calculation or changes to the
way the Indices are calculated.
If you tell Meteor that you want to cancel your investment after
they
have bought the Securities you will only get back the value of the
Securities when they sell them, which is likely to be less than your
original investment.
The values of any tax reliefs will depend on your individual
circumstances. You should note that the levels and bases of taxation
could change in the future.
What are the risks of transferring my ISA?
Your existing ISA must be transferred in cash, which means your
existing plan manager will sell your investment holdings.
Your existing Plan Manager may charge you an exit or transfer fee.
There is the potential for loss of income or growth if markets
should rise while your transfer remains pending.
You could lose some interest if you transfer a cash ISA and decide
not to wait for the expiry of any notice period.
If you transfer a cash ISA you would not be able to transfer back
to a cash ISA at a later date.
Meteor will not normally accept ISA transfer applications after
16th June 2010, to allow time for Meteor to receive the proceeds
from your existing ISA Manager. However, if they do not send Meteor
the funds you have requested before the Start Date we will not be
able to purchase Securities for this Plan on your behalf.
Please refer to the Brochure and the Terms & Conditions for full
details.
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