RBS September/October Product Range Issue 10. Current offerings. For professional adviser use only

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1 For professional adviser use only RBS September/October Product Range Issue 10 Current offerings This leaflet is an overview of the open offerings. For full details on risks, product features and other important information about the products please refer to the brochures. To order brochures please call or us on For more information on the RBS Indices and to view educational videos, please visit STRUCTURED INVESTMENT PRODUCTS UK step-down defensive kickout plan 3 UK Accelerated Growth Plan 1 UK Growth Kickout Plan 1 Fixed Income Plan 2 RBS Autopilot RBS Emerging MarketS (BRIC) RBS Commodity RBS UK Balanced Sector STRUCTURED DEPOSITS UK Accelerated Growth Deposit Plan 1 RBS Autopilot Deposit RBS Emerging MarketS (BRIC) Deposit RBS Commodity Deposit RBS UK Balanced Sector Deposit INTERNATIONAL STRUCTURED DEPOSITS Autopilot International 13

2 Equity Structured Business Retail area uk step-down defensive kickout plan 3 UK Step-down Defensive RBS Emerging Kickout Markets (BRIC) Plan 3 Growth Plan 1 The UK Step-down Defensive Kickout Plan 3 is a six year product which has the potential to mature early. The return and whether or not your client receives back their original Investment is dependent on the performance of the FTSE 100 Index (the Index ). This Plan will put your client s invested capital at risk. The Plan is managed by The Royal Bank of. Min. investment Rate UK Step-down Defensive Kickout Plan 3 28 August 2012 Min. 1 year max. 6 years Potential 7.5% p.a. (gross) This Plan will put your invested capital at risk About the UK Step-down Defensive Kickout Plan The Plan has a maximum investment term of six years but could mature early at the end of each year if the FTSE 100 Index is at or above the relevant kick-out level on any one of the five Early Valuation Dates. If the Plan does mature early it will pay out an equivalent of 7.5% (gross) for each year the Plan has been open plus the return of the original investment. In the case of early maturity, the investment will end and no further payments will be made. Issuer scheme eligibility Capital at risk unless held in a If the Plan does not mature early at the end of year 1, no fixed return will be paid and the Plan will continue onto the next year. This process will occur at the end of years 2, 3, 4 and 5. Each year, the relevant kick-out level will decrease ( step-down ) by 3% and the potential fixed return will increase by 7.5% (gross). If the Plan does not mature early at the end of year 5 it will continue to the Final Maturity Date in year 6 and there will be three outcomes: IFA commission The FTSE 100 Index 1. If the Final Index is at or above 85% of the, the Plan will pay out a fixed return of 45% (gross) plus the original investment, and the Plan will mature. 2. If the Final Index is below 85% of the but the closing level of the Index HAS NEVER been less than 50% of its during the Life of the Plan, no fixed return will be paid. Investors will receive their original investment only. 3. If the Final Index is below 85% of the and the closing level of the Index HAS been less than 50% of its Initial Index during the Life of the Plan, no fixed return will be paid and the original investment will be reduced by the same percentage as that by which the Final Index is below the. Investors will lose some or all of their original investment. The above is subject to risks 1 and 2 which are described on page 7 at the end of this leaflet. Early/Final Valuation Date 28 October October 2014 Early/Final Maturity Date 4 November November 2014 Kick-out 100% of the 97% of the Fixed return if the Index is at or above the Kick-out on the Early/Final Valuation Date (gross) 7.5% 15% 26 October November % of the 22.5% 26 October November % of the 30% 26 October November % of the 37.5% 26 October November % of the 45% 1

3 RBS Autopilot / RBS Autopilot Deposit Business area RBS Autopilot Deposit RBS Autopilot Growth PlanPlan 6 6 Growth The RBS Autopilot Growth Plan 6 and the RBS Autopilot Deposit are five and a half year products linked to the RBS UK Autopilot Index (the Index ). They are designed to repay your client s original investment in full at maturity* plus a return equal to 70% of any rise in the Index during the five and a half year term, subject to averaging in the final year of the plans (13 monthly observations in total). oth plans are managed by B ( RBS plc ). About the RBS UK Autopilot Index The RBS UK Autopilot Index is one of an exclusive range of indices that are created, owned and maintained by RBS plc. It is designed to maximise diversification across a range of underlying assets and global markets. It does this by tracking four market sectors, namely the developed equity market, the emerging equity market, the property equity market and the commodity market, or by linking to UK inflation as represented by the Retail Price Index (RPI). The RBS UK Autopilot Index uses a monthly strategy which is designed to gain exposure to the four market sectors when they are identified to be in a rising trend. If any of the market sectors are identified to be in a falling trend then the Index will instead link to UK RPI to provide protection against inflation. The return from each market sector is capped at 7% per month. Investments in commodities and emerging equity markets can carry more risk than an investment in the developed equity markets. * protection if held until maturity, subject to risks 1 and 2 which For more information on the RBS UK Autopilot Index please visit RBS Autopilot RBS Autopilot Deposit Growth 5½ years 5½ years Min. investment Participation in the Index 70% 70% Income tax, Trusts,, IFA commission RBS UK Autopilot Index (GBP) PR RBS Emerging MarketS (BRIC) / RBS Emerging MarketS (BRIC) DEPOSIT Equity Structured Business Retail area Equity Structured Business Retail area RBS RBSEmerging Emerging MarketsMarkets (BRIC) Growth Plan 1 RBSDeposit Emerging (BRIC) Markets Growth Plan(BRIC) 6 rbs.com/ukautopilotindex The RBS Emerging Markets (BRIC) and the RBS Emerging Markets (BRIC) Deposit Growth are five year and eleven month products linked to the RBS VC BRIC Index (the Index ). They are designed to repay your client s original investment in full at maturity* plus a return equal to 75% of any rise in the Index during the five year and eleven month term, subject to averaging in the final year of the plans (13 monthly observations in total). Both plans are managed by ( RBS plc ). About the RBS VC BRIC Index The RBS VC BRIC Index is one of an exclusive range of indices that are created, owned and maintained by RBS plc. It is designed to provide exposure to the performance of the shares of up to 40 of the largest (as measured by market capitalisation) companies operating in Brazil, Russia, India and China ( BRIC ). Additionally, the RBS VC BRIC Index applies two automatic features called a Volatility Control Overlay and a Circuit Breaker. Both features aim to protect the Index against some of the inherent volatility exhibited by equity markets, and particularly emerging market shares, and cushion the effect of sudden market movements. See risk 4 which is described on page 7 at the end of this leaflet. Investing in emerging markets can carry more risk than an investment in the developed equity market. RBS Emerging Markets (BRIC) RBS Emerging Markets (BRIC) Deposit Growth Min. investment Participation 75% 75% Income tax, unless held in a Trusts,, IFA commission RBS VC BRIC Index (EUR) ER 16% * protection if held until maturity, subject to risks 1 and 2 which For more information on the RBS VC BRIC Index please visit 2

4 RBS Commodity / RBS Commodity DEPOSIT RBS Commodity Deposit Growth RBS Commodity The RBS Commodity Growth Plan 6 and the RBS Commodity Deposit are five year and eleven month products linked to the RBS VC Commodity Index (the Index ). They are designed to repay your client s original investment in full at maturity* plus a return equal to 80% of any rise in the Index during the five year and eleven month term, subject to averaging in the final year of the plans (13 monthly observations in total). oth plans are managed by B ( RBS plc ). About the RBS VC Commodity Index The RBS VC Commodity Index is one of an exclusive range of indices that are created, owned and maintained by RBS plc. It is designed to provide exposure to a collection of 36 commodities ranging from precious metals such as gold and silver to soft commodities such as coffee and sugar. The Index will follow a strategy created by RBS plc and commodities market expert, Jim Rogers to invest in the commodities (via futures contracts). Additionally, the RBS VC Commodity Index has an automatic feature, called a Volatility Control Overlay, which is designed to protect against some of the inherent volatility exhibited by the commodity markets and cushion the effect of sudden market movements. See risk 4 which is described on page 7 at the end of this leaflet. Investments in commodities can carry more risk than an investment in the developed equity markets. RBS Commodity RBS Commodity Deposit Growth Min. investment Participation 80% 80% Income tax, Trusts, IFA commission RBS VC Commodity Index (USD) ER 11% * protection if held until maturity, subject to risks 1 and 2 which For more information on the RBS VC Commodity Index please visit com/commodityindex RBS UK Balanced Sector / RBS UK Balanced Sector Deposit Equity Structured Business Retail area RBS UK Balanced Sector Deposit RBS UK Balanced Sector Growth rbs.com/ukautopilotindex The RBS UK Balanced Sector and the RBS UK Balanced Sector Deposit Growth are five year and eleven month products linked to the RBS UK Balanced Sector Index (the Index ). They are designed to repay your client s original investment in full at maturity* plus a return equal to any rise in the Index during the five year and eleven month term, subject to averaging in the final year of the plans (13 monthly observations in total). Both plans are managed by The Royal Bank of ( RBS plc ). About the RBS UK Balanced Sector Index The RBS UK Balanced Sector Index is one of an exclusive range of indices that are created, owned and maintained by RBS plc. It is designed to represent a balanced measure of the largest companies in the UK equity market by assigning an equal weighting to each of the individual companies and industry sectors within the Index. This aims to provide a more balanced exposure to the performance of UK companies than would be achieved by investing in traditional benchmark indices such as the FTSE 100 Index which includes similar companies but weights them by their market capitalisation. Additionally, the RBS UK Balanced Sector Index has an automatic feature, called a Volatility Control Overlay, which is designed to protect against some of the inherent volatility exhibited by the equity markets and cushion the effect of sudden market movements. See risk 4 which is described on page 7 at the end of this leaflet. * protection if held until maturity, subject to risks 1 and 2 which For more information on the RBS UK Balanced Sector Index please visit www. rbs.com/ukbalancedsectorindex 3 RBS UK Balanced Sector Growth RBS UK Balanced Sector Deposit Min. investment Participation 100% 100% Income tax, Trusts,, IFA commission RBS UK Balanced Sector Index (GBP) PR 12.65%

5 FIXED Income plan 2 This Plan will put your invested capital at risk Fixed Income Plan 2 The Fixed Income Plan 2 (the Plan ) is a six year investment which provides a Quarterly Fixed Income Payment. This investment puts your clients capital at risk: whether or not your clients receive back their original investment at maturity is dependent on the performance of either UK share prices or both UK and European share prices according to their choice of investment options. The Plan is managed by The Royal Bank of. About the Fixed Income Plan The Plan provides investors with a fixed income payment, which is paid quarterly, throughout the six year life of the Plan. Within the Plan, there are two options to choose from, each of which offers a different Quarterly Fixed Income Payment and different risk to your client s capital: Fixed Income Plan 2 28 August years Min. investment Rate Option One 1.325% Quarterly (equivalent to 5.3% annually) p.a (gross) Option Two 1.5% Quarterly (equivalent to 6% annually) p.a (gross) Capital at risk Option One UK Income pays a fixed income of 1.325% (gross) each quarter throughout the six year life of the Plan. This income payment is not dependant on, or affected by, the performance of any index. The return of capital at maturity will depend on the performance of the UK share prices as represented by the FTSE 100 Index throughout the life of the Plan. scheme eligibility Income tax, unless held in a Option Two UK & European Income - pays a fixed income of 1.5% (gross) each quarter throughout the six year life of the Plan. This income payment is not dependant on, or affected by, the performance of any index. The return of capital at maturity will depend on the performance of both UK share prices, as represented by the FTSE 100 Index and European share prices, as represented by the Euro Stoxx 50 Index, throughout the life of the Plan. IFA commission /s The FTSE 100 Index Euro Stoxx 50 Index At the end of six years there are three potential outcomes for each option, depending on how the Index or Indices have performed over the life of the Plan: Option One Option Two Outcome One: If the Final Index of the FTSE 100 Index is at or above its investors will receive the full amount they originally designated to Option One. Outcome Two: If the Final Index is below the but the FTSE 100 Index has never closed at less than 50% of its during the life of the Plan, investors will receive the full amount they originally designated to Option One. Outcome Three: If the Final Index is below the and the FTSE 100 Index has closed at less than 50% of its on any day during the life of the Plan, then the amount investors originally designated to Option One will be at risk and will be reduced by the same percentage as that by which the Final Index of the FTSE 100 Index is below its. This means that investors will lose some or all of the amount they originally designated to Option One. Outcome One: If the Final Index s of both the FTSE 100 Index and the Euro Stoxx 50 Index are at or above their respective s investors will receive the amount they originally designated to Option Two. Outcome Two: If the Final Index of either Index is below its Initial Index but neither the FTSE 100 Index nor the Euro Stoxx 50 Index has ever closed at less than 50% of their respective s during the life of the Plan, investors will receive the amount they originally designated to Option Two. Outcome Three: If the Final Index of either Index is below its and either the FTSE 100 Index or the Euro Stoxx 50 Index has closed at less than 50% of its respective on any day during the life of the Plan, then the amount investors originally designated to Option Two will be at risk and will be reduced by the same percentage as that by which the Final Index of the worst performing Index is below its. This means that investors will lose some or all of the amount they originally designated to Option Two. The above is subject to risks 1 and 2 which 4

6 Autopilot International 13 Autopilot International 13 is a five and a half year deposit with RBS International Limited linked to a strategy called Autopilot. It is designed to repay your client s original deposit in full at maturity* plus a return equal to 100% of any rise in the Autopilot strategy during the five and a half year term (subject to averaging in the final six months of the deposit). Autopilot International June September ½ years Min. investment 10,000 / $10,000 Participation 100% About the Autopilot strategy Autopilot is designed to benefit from exposure to a range of up to four different market sectors and/or cash. The four market sectors are the developed equity market, the emerging equity market, the European and Asian property equity market and gold. Each month, if a particular market sector is identified to be in a rising trend, Autopilot will track the performance of that market sector for the following month. If, however, the performance of the market sector is identified to be in a falling trend, the allocation for that market sector will be reallocated to cash for the following month. Deposit scheme eligibility Scotland International Limited Isle of Man Depositors Scheme (up to 50,000 per person, per No tax withheld on payment at maturity Autopilot is therefore designed to provide the potential for positive returns regardless of the market conditions in the four different market sectors. The return from each market sector is capped at 7% per month for the Sterling version and 8% per month for the US dollar version., Direct, Corporate IFA commission 3% Currency Sterling, US dollar Investments in commodities and emerging equity markets can carry more risk than an investment in the developed equity markets. * protection if held until maturity, subject to risks 2 and 3 which 5

7 Business area UK Accelerated Growth Plan 1 / UK Accelerated Growth Deposit Plan 1 UK Accelerated Growth Deposit UK Accelerated Plan 1 Growth Plan 1 The UK Accelerated Growth Plan 1 and the UK Accelerated Growth Deposit Plan 1 are five year and eleven month products linked to the FTSE 100 Index (the Index ). They are designed to repay your client s original investment in full at maturity* plus a return linked to the performance of the Index during the five year and eleven month term, subject to averaging in the final year of the plans (13 monthly observations in total). Both plans are managed by ( RBS plc ). About the UK Accelerated Growth Plan 1 / UK Accelerated Growth Deposit Plan 1 The Plans may be considered by investors who think the Index may rise moderately over the life of the plan. If the Final Index is greater than the, investors will receive a return at maturity of 1.50 times the percentage by which the Final Index is greater than the, up to a maximum return. UK Accelerated Growth Plan 1 13 August 2012 UK Accelerated Growth Deposit Plan 1 13 August 2012 Min. investment Participation in the Index The maximum return at maturity is 45% gross of the original investment. If the Final Index is more than 30% above the Initial Index, they will not benefit from any further rise. Income tax, unless held in a The calculation of the Final Index is subject to averaging If the Final Index is the same as or less than the, investors will receive only the repayment of their original investment. They will not receive any additional return. Trusts,, * protection if held until maturity, subject to risks 1 and 2 which IFA commission The FTSE 100 Index UK Growth Kickout Plan 1 UK Growth Kickout Plan 1 The UK Growth Kickout Plan 1 is a six year product which has the potential to mature early. The return and whether or not your client receives back their original investment is dependent on the performance of the FTSE 100 Index (the Index ). This Plan will put your client s invested capital at risk. The Plan is managed by The Royal Bank of. Min. investment Rate UK Growth Kickout Plan 1 28 August 2012 Min. 1 year max. 6 years Potential 9% p.a. (gross) This Plan will put your invested capital at risk About the UK Growth Kickout Plan 1 Capital at risk The Plan has a maximum investment term of six years but could mature early ( kick out ) at the end of each year on any one of five Early Maturity Dates if the FTSE 100 Index is at or above the Initial Index. If the Plan does kick-out, it will pay out a fixed return of 9% (gross) for each year the Plan has been open plus the return of the original investment. In the case of early maturity, the investment will end and no further payments will be made. If the Plan does not mature early it will continue to the Final Maturity Date. The maximum potential return at maturity is 54% (gross) plus the return of the original investment if the Final Index is at or above the Initial Index at the end of year six. Issuer scheme eligibility unless held in a If at the end of year six, the Final Index is below the Index but the closing level of the Index HAS NEVER been less than 50% of its during the Life of the Plan, then no fixed return will be paid and investors will receive only their original investment. If the Final Index is below the and the closing level of the Index HAS been less than 50% of its during the Life of the Plan, then no fixed return will be paid and the original investment will be reduced by the same percentage as that by which the Final Index is below the. This means that investors will lose some or all of their original investment. IFA commission The FTSE 100 Index The above is subject to risks 1 and 2 which are described on page 7 at the end of this leaflet. 6

8 Key Product Risks 1 If were to default or go bankrupt, investors could lose some or all of their investment. Unless stated otherwise, any such loss will not be eligible for compensation under the UK Financial Services Scheme. 2 The value of the investment may fall as well as rise and if investors withdraw from the Plan prior to maturity they may receive back less than they originally invested. 3 If Scotland International Limited were to default or go bankrupt, investors could lose some or all of their investment. Any such loss will not be eligible for compensation under the UK Financial Services Scheme, but may be eligible for compensation under the Isle of Man Depositors Scheme as set out in the Depositors Scheme Regulations Any tax comments contained within this document are indicative only and are based on our understanding of current law and practice. These comments are not intended to be, nor should they be regarded as, legal or tax advice. The precise tax treatment of an investor in any of these products will depend on the investor s individual circumstances and on the applicable terms of the product under the law and practice at the relevant time and is subject to changes in the future. Prospective investors should consult their own tax advisers to obtain advice about their particular tax treatment in relation to such products. The tax treatment of these products can be complex and the level and basis of taxation may change during the life of the product. Not all risks may apply to each product and readers should refer to product descriptions for further details. 4 If markets rise in a volatile manner then the Volatility Control Overlay may limit the effect of this rise on the Index. To order brochures please call or us on @sipnordic.co.uk For more information on the RBS Indices and to view educational videos, please visit 7