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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 & 3 of the plan brochure)
•
I am not likely to need access to my money during the
investment term; (see page 9 of the plan brochure)
•
Although the Plan might pay out early I understand this is a
Five-year investment; (see pages 2,5,6 & 9)
•
I want the potential to benefit from any rises in the
Indices but do not want to invest directly in FTSE100 and
S&P 500; (see page 3)
•
I know that the value of the Indices can fall as well as
rise; (see page 8)
•
I understand that although the assets will be provided by
Rabobank, a major financial institution with a current
credit rating from Standard & Poor’s or equivalent of ‘AAA’,
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, 9
& 12)
•
I am satisfied with a potential return of either 8% or 12.5% (not
compounded) and accept the fact that if the Indices were to
rise more than this I would not benefit from any growth
above that provided by the Plan (see pages 3,5 & 6)
•
I am prepared and can afford to accept the investment risks;
(see pages 3-9, 12 & 13) |
What are the risks involved with investing?
• The investment
return you receive will depend on the performance of the FTSE100 &
the S&P 500 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 & 6 of the plan brochure.
• If the early maturity conditions are achieved you will receive
either 8% or 12.5% (not compounded) for each year the Plan has been in force
depending on your investment option.
• If the Indices have 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 levels of the Indices on the measurement dates, as set
out in the ‘How are my returns calculated’ section on pages 5 & 6 of
the brochure. The
Plan may therefore be affected by short-term market fluctuations.
• The capital return at maturity will also depend on the performance
of the Indices and it is possible that you could lose some, or all,
of the amount you invest. The capital return will only be affected
if one or both of the Indices have fallen by more than 50% from
their respective Opening Levels during the investment term. Please
see the ‘How is the capital return calculated?’ Section on page 7 of
the plan brochure.
• 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 the asset provider 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 use your money to acquire, on
your behalf, Medium Term Notes or Warrants (“Securities”) which are
designed to have the characteristics required to achieve the
investment objectives of the Plan. The Securities will be issued by
Rabobank which has a current credit rating of AAA by Standard and
Poor’s. As with any similar investment the security of your Plan is
ultimately dependent on Rabobank 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 Rabobank were to fail to
meet the repayments due you would lose some, or all, of your
investment.
• 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 that
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 a cash ISA is transferred into a stocks and shares ISA it
cannot be transferred back to a cash ISA at a later date.
• Meteor will not normally accept ISA transfer applications after
8th October 2010, to allow time for them to receive the proceeds
from your existing ISA Manager. However, if they do not the funds
you have requested before the Start Date Meteor 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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