RISK FACTORS

Return

This Plan may be suitable if:

• You have a minimum of £7,200 to invest

• You don’t need access to your money over the next 6 years

• You want an investment suitable for ISAs, ISA Transfers, SIPP or a direct investment

• You like the idea of the possibility of early maturity to consolidate any gains during the investment term

 

This plan may not be suitable if:

 • You are not looking for an investment linked (indirectly) to the performance of shares

• You want a regular income

• You do not have any spare money for emergencies

• You may need immediate access to your money

• You want a known guaranteed rate of return

• You want to add to your investment on a regular basis

• You do not have £7,200 to invest

• If you are transferring proceeds of an existing ISA and are uncertain as to whether your existing ISA provider can make cash proceeds available to Cater Allen by 24 November 2008.

Risks

 • If you close your Plan early you may get back less than you paid in.

 • The value of your Plan is not directly linked to the value of the Shares, or any index.

 • Your Initial Investment is secure and the money should be returned at the applicable Maturity Date of this Plan as long as the issuing company remains solvent. Your Initial Investment, along with others, is aggregated and used to purchase a Medium Term Note, which is a type of corporate bond. It is unlikely that the company, Abbey National Treasury Services plc, will fail to repay this loan, but such repayment is not guaranteed, and if there were no repayment you would not get back your Original Investment. Any additional return paid by Abbey National Treasury Services plc will be related to the performance of the basket of 4 Shares (Basket of Shares). Abbey National Treasury Services plc may have to adjust the price you might get back following market events or any actions taken by the four banks in relation to their shares.

 • Investors should be aware that if early maturity conditions are met, proceeds are fixed at the Growth level specified. If, for example, at the end of Year 2 the Plan matures early, with the   Official Closing Price of all 4 Shares being greater than or equal to their Initial Prices, you will receive repayment of your Initial Investment plus a fixed payment equivalent to 22% of your
Initial Investment even if the value of any of the 4 Shares has grown by more than 22%.

• Any early maturity proceeds received under this Plan are dependent on the Official Closing Price of the 4 Shares on the annual Observation Dates specified (in years 1 to 4) of the Plan opening. The amount, which you will receive, could be affected by events on each of those 4 dates. This investment is susceptible to short-term market fluctuations occurring on the 4 Observation Dates specified and you should understand and be prepared to accept this risk.

 • If the Plan reaches final maturity at the end of the full 6 year term, the use of averaging to calculate the Final Price can reduce the adverse effects of a falling market shortly before maturity or, on the other hand, it can also reduce the benefits of an increasing market or sudden market rises shortly before maturity.
• Minimum Original Investment is £7,200. The Plan is eligible to be held as an ISA (under HM Revenue & Customs rules for ISAs as at 1st September 2008). If the Plan is held as an ISA, Investors may not contribute (or have contributed) to any other Stocks and Shares ISA during the 2008-2009 Tax Year. Any contributions made to an ISA which are later found not to be eligible to be held as an ISA will remain in the Plan but will be treated as direct investments and will not be treated as ISA contributions.

 • It will be possible for Investors to contribute up to their ISA limits (to be held as ISAs) plus further amounts (to be held as Direct investments). The minimum investment in each is £7,200. For example an Investor can contribute £15,000, with £7,200 held as an ISA and the remaining £7,800 held as a Direct investment. Whilst both amounts will be treated the same within the Plan, the ISA and Direct investments will have different tax treatments with regard to interest earned prior to the Strike Date and on maturity.

• The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depend on individual circumstances. The favourable tax treatment of ISAs may not be maintained in the future.

 • Consideration given prior to making a transfer of existing investments should include the exit and associated charges of transferring existing investments, the limited offer period and amount available, and the potential for loss of income or growth whilst the transfer is pending and whether the risk to capital in this Plan is suitable.

 • If you die and your legal representatives choose not to hold the Plan until maturity on 27 November 2014 they may get back less than you paid in.  We do not make or imply any recommendation regarding the suitability of this investment. If you are in any doubt about the suitability of this investment for your needs, you should seek professional advice from a Financial Adviser. You may need to pay to do this.

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

Best discount on ISAs, Unit Trusts and OEICs