UK Accelerated Growth Deposit Plan (March 2013) Business area

Transcription

1 UK Accelerated Growth Deposit Plan (March 2013) Business area

2 Contents Key dates 2 Important terms 3 Key features of the UK Accelerated Growth Deposit Plan (March 2013) 5 Is the Plan right for me? 6 How is the return calculated? 7 About the FTSE 100 Index 9 What are the risks? 10 Questions 11 Contacts 16 Terms and Conditions 17 Key dates Plan available for sale 1 March 2013 to 30 April 2013 ISA transfer application deadline 16 April /2013 ISA application deadline 5 April /2014 ISA application deadline 30 April 2013 Direct Account application deadline 30 April 2013 SIPP/SSAS application deadline 30 April 2013 Initial Valuation Date 3 May 2013 Start Date 17 May 2013 Final Valuation Date 3 May 2019 Maturity Date 10 May

3 Important terms Here is a short description of some of the important terms used in this Plan brochure. See the Terms and Conditions on pages for the full definition of all terms used. Adviser Charge The amount you agree to pay to your financial adviser for their services. Account The deposit account opened by RBS plc for your Deposit Amount. An Account may be either a Direct Account or an ISA Account. Application Form The application form to invest in the Plan, either via an ISA or Direct Account, and can include a Transfer Application Form. Business Day Any day (other than Saturday or Sunday) on which banks are open for business in the UK. Cash ISA An Account established in accordance with the ISA Regulations and consists of a cash component only. Client Money Money held in accordance with the provisions of the FSA s Client Assets Sourcebook relating to client money. Deposit Amount The original deposit amount or the amount transferred from another Cash ISA deposited in the Account. This will not include any Adviser Charge. Deposit Taker In this case RBS plc is the licensed deposit taker. Direct Account Any part of your deposit that is not part of an ISA. Final Index Level The average of the closing levels of the Index on the 3rd of each month in the last year of the Plan (13 monthly observations in total), or the next Business Day when not a Business Day. Final Valuation Date The date when we calculate the Final Index Level and the Maturity Value. FSA The Financial Services Authority, or any successor organisation. FSCS The Financial Services Compensation Scheme. Gross The interest rate paid before the deduction of tax. Index The FTSE 100 Index which is made up of 100 of the largest companies by market capitalisation listed on the London Stock Exchange. Initial Index Level The closing level of the Index on the Initial Valuation Date. Initial Valuation Date The date when we calculate the Initial Index Level. ISA An Individual Savings Account. ISA Account An Account opened by RBS plc in accordance with the ISA Regulations. ISA Manager The person who is approved to administer an ISA, and in respect of an ISA related to the Plan, means The Royal Bank of Scotland plc. ISA Regulations The Individual Savings Account Regulations 1998, as amended or replaced from time to time. Life of the Plan When determining the performance of the Index from its Initial Index Level, the period from the Initial Valuation Date to, and including, the Final Valuation Date. Maturity Date The date on which your original Deposit Amount and any additional return due to you is paid into a Client Money account, pending your further instructions. Maturity Value The final value of the deposit (together with any return), calculated as set out in the Plan brochure. Plan UK Accelerated Growth Deposit Plan (March 2013), comprising the deposits placed through your ISA and/or your Direct Account, as specified in your Application Form(s). Plan Manager The company which is responsible for the administration of the Plan, which in this case is The Royal Bank of Scotland plc. Start Date The date on which the Deposit Amount is placed with RBS plc. Transfer Application Form An application form to transfer your investment in an existing ISA to an ISA Account under the Plan. Valuation Date The two days per month when you can withdraw money from the Plan and which will be the 8th and the 21st of each month (or the next Business Day when not a Business Day). We, us, our and RBS plc The Royal Bank of Scotland plc. We are a member of The Royal Bank of Scotland Group plc (the RBS Group ). For information about our group of companies, please visit and click on About Us. 3

4 What is an index? An index is a tool for measuring the performance of a collection of financial assets. An index may, for example, be composed of shares in companies from a specific industry sector or a particular country or it may contain a range of commodities such as oil, gold or wheat. An index is therefore often useful as a benchmark which can be used to represent the performance of a particular market sector. What is the FTSE 100 Index? The FTSE 100 Index is a measure of the share price performance of the largest 100 companies listed in the UK on the London Stock Exchange. The companies are selected based on their market capitalisation. It currently includes household names such as Tesco, Vodafone and Unilever. What is market capitalisation? Market capitalisation is a measure of the size of a company. It is calculated by multiplying the number of shares in a company by the current share price. 4

5 Key features of the UK Accelerated Growth Deposit Plan (March 2013) The UK Accelerated Growth Deposit Plan (March 2013) (the Plan ) is a six year deposit, where any potential return is dependent on the performance of the FTSE 100 Index (the Index ). The Financial Services Authority is the independent financial services regulator. It requires us, The Royal Bank of Scotland plc, to give you this important information to help you to decide whether the Plan is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. The Plan The Plan is designed to repay your original Deposit Amount in full at maturity plus a return linked to the performance of the FTSE 100 Index. If the Final Index Level is greater than the Initial Index Level, you will receive a return at maturity of twice the percentage by which the Final Index Level is greater than the Initial Index Level, up to a maximum return. The maximum return on your investment is 34% gross. The calculation of the Final Index Level is subject to averaging as explained on page 7. This Plan may be considered by investors who think the Index may rise moderately over the Life of the Plan. You should be aware that, depending on the performance of the Index, you may only receive back your original Deposit Amount. Further details of how the returns are calculated are explained on page 7. The minimum original Deposit Amount is 5,000, excluding any Adviser Charge. Further details of Deposit Amounts in the Plan are explained on page 11. When you invest in the Plan, your money will be placed on deposit with The Royal Bank of Scotland plc ( RBS plc ). This means that, although the Plan is designed to repay your original Deposit Amount at maturity, this is dependent on the ability of RBS plc to pay what it owes you. Therefore, in the unlikely event that RBS plc were to default or go bankrupt you could lose some or all of your original Deposit Amount, and any potential return. If that occurs you may be entitled to compensation from the Financial Services Compensation Scheme ( FSCS ). See page 15 for further information. The Plan is only available via your financial adviser. You can invest on either an advised or non-advised basis. We recommend that you seek financial advice before investing in this Plan. If you do not receive financial advice a financial adviser must still have confirmed that it is appropriate for you. Before you invest in the Plan you should ensure that you read and understand this brochure, including the Terms and Conditions. If you have any doubts about this Plan, you should consult with a financial adviser. Please see pages 3 and 4 for useful explanations of the important terms used in this brochure. These terms are then designated with capital letters throughout the brochure. 5

6 Is the Plan right for me? The points below highlight some of the factors you should consider when deciding whether to invest in the Plan. If you do not understand the Plan, you should seek financial advice. The Plan may be right for you if: You have a minimum 5,000 to invest. You have enough money to cover any emergencies and are happy to keep your money invested for six years. You want to know that your original Deposit Amount will be repaid to you at the end of six years (subject to the risk that RBS plc defaults or goes bankrupt and is unable to pay what it owes you). You accept the risk that you may not receive any return on your deposit. You are happy for your money to be deposited with RBS plc for six years. It suits you that any returns on this deposit which are placed outside an ISA may be subject to income tax at your marginal rate. You would like a deposit with returns linked to the performance of the FTSE 100 Index. You want the opportunity to make a tax efficient return by investing in a Cash ISA. The Plan may not be right for you if: You may need access to your money in the next six years. You do not have any funds set aside for an emergency. You are looking for a regular income or dividends from your investment. You definitely want to receive a return on your deposit. You are not willing to take the risk that RBS plc may default or go bankrupt during the course of the Plan. You want to add to your deposit on a regular basis. You do not want a deposit with returns linked to the performance of the FTSE 100 Index. You are not sure how the Plan works or have not understood this brochure. 6

7 How is the investment return calculated? On the Final Valuation Date we will calculate whether any return is due on your original Deposit Amount. To do this we will compare the Final Index Level with the Initial Index Level. Initial Index Level This is the closing level of the FTSE 100 Index on the Initial Valuation Date (see page 2). Final Index Level This is calculated as the average of the closing levels of the Index on the 3rd of each month over the last year of the Plan (13 monthly observations), or the next Business Day when not a Business Day. To calculate the average, we will add the 13 monthly Index levels and divide that result by 13. Averaging The process of averaging may benefit the performance of the Plan if the Index falls over the averaging period. However, if the opposite occurs, this will constrain the Plan s performance when compared to a calculation method which does not use averaging. Calculating the return If the Final Index Level is greater than the Initial Index Level, you will receive a return at maturity of twice the percentage by which the Final Index Level is greater than the Initial Index Level. The maximum return at maturity is 34% gross of your original Deposit Amount. If the Final Index Level is more than 17% above the Initial Index Level, you will not benefit from any further rise. If the Final Index Level is the same as or less than the Initial Index Level, you will receive only the repayment of your original Deposit Amount. You will not receive any additional return. 7

8 Examples of return The potential returns available under the Plan are shown graphically in the illustration below and numerically in the table below. Examples of return illustration 40% 35% Return received at maturity (gross) 30% 25% 20% 15% 10% 5% 0% -30% -25% -20% -15% -10% -5% 0% Change in the FTSE 100 Index (comparing the Final Index Level against the Initial Index Level) +5% +10% +15% +20% +25% +30% The returns stated are gross of any tax. It is expected that returns outside of an ISA may be subject to income tax. See Types of investment on page 11. Examples of the total returns of this Plan The table below illustrates what returns you would receive in a range of different scenarios. The examples are based on an original Deposit Amount of 10,000 and are gross of tax. What you actually receive at maturity will be dependent on the actual performance of the FTSE 100 Index. Percentage change in the level of the Index from its Initial Index Level to its Final Index Level Percentage return at maturity* Amount of return at maturity (gross) Original Deposit Amount returned at maturity Total amount received at maturity including original Deposit Amount 50.00% 34.00% 3,400 10,000 13, % 34.00% 3,400 10,000 13, % 34.00% 3,400 10,000 13, % 34.00% 3,400 10,000 13, % 34.00% 3,400 10,000 13, % 30.00% 3,000 10,000 13, % 20.00% 2,000 10,000 12, % 10.00% 1,000 10,000 11, % 0.00% 0 10,000 10, % 0.00% 0 10,000 10, % 0.00% 0 10,000 10, % 0.00% 0 10,000 10,000 *Twice the percentage change from Initial Index Level to Final Index Level up to a maximum change of 17% (maximum return 34% gross) 8

9 About the FTSE 100 Index Any potential return on your original Deposit Amount is dependent on the performance of the FTSE 100 Index over the Life of the Plan. This Index is made up of the largest 100 companies by market capitalisation listed in the UK on the London Stock Exchange and currently includes household names such as Tesco, Vodafone and Unilever. Market capitalisation is a measure of the size of a company. It is calculated by multiplying the number of shares in a company by the current share price. The share prices of these companies will change, so the level of the FTSE 100 Index will rise and fall. Historical performance of the Index Feb Feb Feb Feb Feb Feb Feb 2013 Source: Bloomberg, 11 February Please note: past performance should not be used as an indicator of future performance. Key considerations when investing in products linked to the FTSE 100 Index The Index may be postponed or terminated if the shares that make up the Index are not published, or where, for example, the relevant stock exchange fails to open or suspends or stops trading. Following the occurrence of these market disruption events, or other events that cause the Index to be adjusted, RBS plc has the discretion to make certain decisions, calculations and corrections which may apply to the Plan, though RBS plc must always act in good faith when making any decisions, calculations or corrections. Should the Index cease to exist, any product linked to the Index may be restructured or may terminate early. This may have a negative impact on the return on any investment in such a product. If any of these disruption or termination events occur, RBS plc may, as Deposit Taker under the deposit programme, adjust the calculation of payments or defer payments under those deposits. 9

10 What are the risks? Because your money will be placed on deposit with RBS plc, in the unlikely event that RBS plc were to default or go bankrupt, you could lose some or all of your original Deposit Amount and any potential return. If this occurs you may be entitled to compensation from the FSCS. See page 15 for more information. Whether or not you receive any return on your deposit is dependent on the performance of the FTSE 100 Index. You may only receive back your original Deposit Amount (subject to the risk described above). The potential returns limit your exposure to the performance of the Index and could mean you receive back less than the actual performance of the Index. If the Final Index Level is more than 17% above the Initial Index Level, you will not benefit from any further rise in the Index and will receive the maximum return of 34% gross. The Index is linked to a collection of underlying company shares in the UK. Prices of these shares can move up and down very quickly and may be negatively affected by global economic, financial and political developments. You are not investing directly in the underlying company shares to which the Index provides exposure and therefore you will not receive dividends. If you decide to terminate the Plan before maturity, the amount you receive back will be dependent on the early withdrawal value of the deposit. You could get back significantly less than your original Deposit Amount. If the return is not equal to or above the rate of inflation over the course of the Plan, the real value of your deposit will fall, as your money will buy you less than it would have done when you deposited it. Tax rules may change during the course of the Plan, which may affect the tax treatment of any return you receive. 10

11 Questions Qualifying investors Who can invest? You must be aged 18 or over to apply. You must be UK resident for tax purposes. The Plan is not available for US persons. How much can I invest? The minimum original Deposit Amount for the Plan is 5,000, which is separate from any Adviser Charge. There is no maximum for Direct Account deposits, ISA transfers or SIPP/SSAS deposits. The Cash ISA allowance is 5,640 for 2012/2013 and 5,760 for 2013/2014. You can use both your 2012/2013 and 2013/2014 ISA allowance for this Plan. Charges What are the Plan charges? All charges applicable to the Plan have already been built into the Plan structure and so have been accounted for in the returns described in this brochure. This means that, if you hold the Plan to maturity, any return will be based on the whole of your original Deposit Amount. These charges will be no more than 1.5% of your original Deposit Amount. What are Adviser Charges? Financial advisers set their own charges for their services and these are known as Adviser Charges. Financial advisers must disclose what they will charge you at the outset, using some form of price list or tariff, confirming the specific amounts you will be charged. You can either pay the Adviser Charge directly to your financial adviser or you can add the Adviser Charge to the amount you give us to invest in the Plan and we will pay it to your financial adviser on your behalf. You will be given details of any Adviser Charge we pay to your financial adviser in our confirmation of your investment. Types of investment Direct Account You can place a deposit directly into the Plan as an individual or a joint account holder and also as a corporate body, a trust or a charity. ISA If you are ordinarily resident in the UK for tax purposes, you can invest up to a maximum of 5,640 into a 2012/2013 Cash ISA and a further maximum 5,760 into a 2013/2014 Cash ISA. The total 2012/2013 annual ISA allowance with all providers is 11,280, and for 2013/2014 is 11,520. This includes any amount you may invest in a stocks and shares ISA for the same year. This Plan is only available as a Cash ISA. Another version of the Plan is available if you wish to invest in a stocks and shares ISA. You can use both your 2012/2013 and 2013/2014 tax year Cash ISA allowance for this Plan (provided you do not have any other Cash ISAs for the relevant tax year). Any amount you wish to deposit that exceeds the ISA limits will need to be deposited as a Direct Account and will be subject to the minimum Deposit Amounts (see How much can I invest? ). You can transfer all or part of any existing Cash ISA deposit above 5,000 into this Plan. If you transfer a 2012/2013 Cash ISA before 6 April 2013 then you must transfer the full amount. If you wish to transfer a 2013/2014 Cash ISA you must transfer the full amount. Your existing provider may make a charge for transferring your ISA. You may also lose out on growth or interest while your ISA is being transferred. It is important that we receive your ISA transfer funds by 8 May If we receive your ISA transfer funds after this date we will return the cheque to your original ISA manager. 11

12 SIPP/SSAS You can invest pension monies via a Self Invested Personal Pension (SIPP) or Small Self Administered Scheme (SSAS). RBS plc places no limit on the maximum investment amount. Tax How will my investment be treated for tax purposes in the UK? Tax treatment depends on individual circumstances and may be subject to change in the future. These statements are not intended to be, nor should they be, regarded as legal or tax advice and you should consult your tax adviser to obtain advice about the particular tax treatment in relation to this Plan, particularly if you may be subject to tax in other jurisdictions. Direct Account It is expected, based on our understanding of current tax regulations, that any returns from the Plan for individuals and joint account holders will be treated as interest and may be subject to income tax. Any returns from the Plan for individuals and joint account holders will be paid net of basic rate income tax as required by law. Higher rate or additional rate taxpayers will have further tax to pay. Any returns from the Plan will generally be paid gross if you place a deposit as a corporate body or charity. Trusts will be paid gross or net of basic rate tax, depending on the terms of the trust. ISA Any returns from the Plan will be paid gross. Under current legislation, the proceeds of deposits held within an ISA are not subject to either UK income tax or UK capital gains tax, and any gains or losses on your deposit will be disregarded for the purposes of the calculation of UK taxes. SIPP/SSAS Any returns from the Plan will be paid gross. Making an investment How do I apply? The Plan is only available via your financial adviser and they will explain how to apply for the Plan. Before you invest in the Plan, it is important that you read and understand this brochure, including the Terms and Conditions. We recommend that you seek financial advice before investing in this Plan. If you do not receive financial advice before investing in the Plan, a financial adviser must still confirm that it is appropriate for you. Your financial adviser must satisfy various procedural requirements before we can accept your application. What confirmation of my investment will I receive? Within five Business Days of our receipt of your money, a correctly completed Application Form and provided that your financial adviser has also satisfied certain conditions before we receive your money and Application Form, we will send you a confirmation that your application has been accepted. We will also enclose details of your right to cancel within 14 days of the date you receive our letter confirming acceptance of your application. If your financial adviser has not satisfied these conditions before we receive your money and Application Form, we will notify your financial adviser as soon as practicably possible and return your original Deposit Amount without any interest. What happens to my money before the Start Date? As soon as we receive the Adviser Charge from you it will cease to be your money and will be payable to your financial adviser. We will place your original Deposit Amount in a Client Money account with Lloyds TSB Bank plc. No interest will be paid. Where an application is made to open a 2013/2014 Cash ISA, any subscription monies for that 2013/2014 Cash ISA will be held outside the ISA, in a Client Money account, until on or after 6 April What happens to my money on the Start Date? Your money will be placed on deposit with RBS plc with a fixed Maturity Date. The deposit has been structured to give the Plan return described earlier in this brochure. The return depends on the ability of RBS plc to pay what it owes you at maturity. 12

13 Credit ratings What are credit ratings? Credit ratings can be a useful way to compare the credit risk associated with different product providers and related investments. Ratings are assigned by independent companies known as ratings agencies and they are reviewed regularly and are subject to change at any time if the company s circumstances change significantly and the agency considers it necessary. Fitch s ratings range from AAA (Most Secure/Best) to D (Most Risky/Worst), Moody s ratings of these companies range from Aaa (Most Secure/Best) to C (Most Risky/Worst) and Standard & Poor s ratings range from AAA (Most Secure/Best) to D (Most Risky/Worst). A rating outlook indicates the likely rating trend over a one to two-year period. It reflects financial or other trends that have not yet reached the level that would trigger a rating change, but which may do so if such trends continue. A stable outlook means that the rating is unlikely to change in the short term. A negative outlook means that the rating may be lowered in the near future. The credit ratings are not investment advice and should not be seen as a recommendation to purchase, sell, or hold a financial obligation from a particular financial institution. Credit ratings are simply one factor that you can look at when making a decision on whether to make a particular investment. A rating is not a guarantee that a particular institution cannot fail. What are the current RBS plc credit ratings? On 11 February 2013 RBS plc is rated A, with a stable outlook, by Fitch, A3, with a negative outlook, by Moody s and A, with a stable outlook, by Standard & Poor s. For the latest information on the RBS plc credit ratings please visit: After making an investment How will you keep me up-to-date with my Plan? We will send a statement twice a year as at 31 March and 30 September (or the next Business Day when not a Business Day) to the address you have given us. Should you wish to find out any other information regarding your Plan, please contact your financial adviser or contact us, see Contacts on page 16. Can I change my mind before the Start Date? You can change your mind within 14 days of the day you receive confirmation that your application has been accepted. To do this you must complete and return the cancellation form which is enclosed with your confirmation. If you do choose to cancel your Plan, simply fill out the cancellation form and return it to us at the address under Contacts. If you cancel the Plan and we receive your cancellation form before the Start Date, we will return your original Deposit Amount in the Plan, without any interest. If we receive your cancellation form on or after the Start Date we will return the early withdrawal value of the Plan, which may be significantly less than your original Deposit Amount, as described more fully in Can I withdraw my money before maturity? We are unable to return any Adviser Charges you have asked us to forward to your financial adviser. Please speak to your financial adviser if you cancel and would like your Adviser Charge returned. You may be liable to pay any outstanding Adviser Charges. If you cancel an ISA or ISA transfer there is a risk that the ISA status of your deposit will be lost. In our cancellation form we will ask you what you would like us to do with the funds. The credit ratings are not investment advice and should not be seen as a recommendation to purchase, sell, or hold a financial obligation from a particular financial institution, they are simply one factor that you can look at when making a decision on whether to make a particular investment. A rating is not a guarantee that a particular institution cannot fail. If you do not cancel, your money will remain invested in the Plan. 13

14 Can I withdraw my money before maturity? The Plan is designed to be held for the full six year period until the Maturity Date, however you can withdraw all or part of your deposit early if you need to. There will be two Valuation Dates each month, on the 8th and 21st, when you can withdraw money from the Plan. In order to meet these dates we must receive your request by 12 noon on the Business Day immediately before the Valuation Date. You can withdraw amounts equal to 1,000 or more but, if you do want to keep the Plan open, you must leave at least 1,000 deposited in it. If you want to transfer your ISA to another provider, the full ISA amount must be transferred, but such amount will be subject to the adjustments described above. Partial transfers are not permitted. Although you will not be charged any fee by RBS plc for withdrawing your investment before the Maturity Date, if you do withdraw early, you should be aware that it is likely you will receive less than the value at maturity and you may well receive less than your original Deposit Amount. You should be aware before making a withdrawal request that this shortfall could be significant. We will seek to ensure that the sale price that we achieve on any sale (whether of all or part of your investment) will be based on the value of your Plan on the Valuation Date we process your sale request rather than on the value of your Plan on the day we receive your sale request. RBS plc must always act in good faith when calculating the early withdrawal value of your Plan and will take into account relevant factors including, amongst others: how long there is to the Maturity Date, the market conditions prevailing on the relevant Valuation Date, for example, what the current level of the Index is and what current interest rates are, and the costs we incur in terminating the contracts. What happens if I die before the Plan matures? If you die before the Maturity Date, the Plan will become part of your estate. Your personal representatives will need to contact us in order to let us know how they wish to proceed with the Plan as part of probate/administration. If you made a Direct Account deposit, your Plan will remain open until we have received instruction from your personal representatives. If you made an ISA deposit, your ISA will lose its ISA tax status and will be closed automatically. The Plan will be continued as a Direct Account deposit until we receive instructions from your personal representatives. Your representatives will have two options: Close the Plan with the proceeds paid to your representatives. The value they receive will be subject to the current early withdrawal value of your Plan so they may receive back less than your original Deposit Amount. Keep the Plan open and transfer it to a named beneficiary(ies) to continue the deposit until maturity. If your representatives choose this option, the beneficiary(ies) must read and agree to the Terms and Conditions as detailed in this brochure. What happens at maturity? On the Final Valuation Date, we will calculate the total return due to you. Prior to the Maturity Date we will write and inform you of the options that are available to you. After we receive your instructions, we will process them and will meet your request within 5 Business Days of the Maturity Date or receipt of your instructions if later. Until we receive your instructions, we will hold your money in a Client Money account with Lloyds TSB Bank plc. No interest will be paid. If we do not receive your instructions within a reasonable time we may return your funds to you by sending a cheque to the address you have given us. 14

15 Further questions What are the compensation arrangements? The compensation arrangements will differ depending on which of the three time frames headed in the table below applies. Please be sure to read all sections carefully. Time frame Where is my money? What happens if RBS plc defaults or becomes bankrupt? What happens if Lloyds TSB Bank plc defaults or becomes bankrupt? Before the Start Date Held as Client Money with Lloyds TSB Bank plc Money is returned to you as it is being held by Lloyds TSB Bank plc as protected Client Money segregated from RBS plc assets If you suffer a loss, you may be eligible to claim compensation from the Financial Services Compensation Scheme (the FSCS ) Deposit accounts are covered for up to 85,000 per firm, per customer From the Start Date to the Maturity Date Placed on deposit with RBS plc If you suffer a loss, you may be eligible to claim compensation from the FSCS Not applicable as the money is placed on deposit with RBS plc Deposit accounts are covered for up to 85,000 per firm, per customer After the Maturity Date Held as Client Money with Lloyds TSB Bank plc Money is returned to you as it is being held by Lloyds TSB Bank plc as protected Client Money segregated from RBS plc assets If you suffer a loss, you may be eligible to claim compensation from the FSCS Deposit accounts are covered for up to 85,000 per firm, per customer The Financial Services Compensation Scheme The FSCS can pay compensation to depositors if a bank or building society is unable to meet its financial obligations. Most depositors, including most individuals and small businesses are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to 85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be 85,000 each. The 85,000 limit relates to the combined amount of all the eligible depositor s accounts with a bank or building society, including their share of any joint account, and not to each separate account. You can find more information about the FSCS (including eligibility to claim) on their website, or by calling Do you provide additional support to financial advisers? We may provide financial advisers with support to help improve their service to you. This could include training, seminars and/or marketing materials. For specific details on any support provided, please contact your financial adviser or us. What if I want to complain? If your complaint relates to the advice you received when purchasing the Plan, please contact your financial adviser. If you have a complaint about any aspect of the service we have provided, please contact us at: The Royal Bank of Scotland plc, BNY Mellon House, Ingrave Road, Brentwood, Essex CM15 8TG, or call us on Copies of our complaint handling procedure are available, from the above contact details, on request. If you are unhappy with the way we have handled your complaint you can contact the Financial Ombudsman Service who may take the matter up on your behalf: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. 15

16 Contacts The Royal Bank of Scotland plc If you have any queries please contact us at: The Royal Bank of Scotland plc BNY Mellon House Ingrave Road Brentwood Essex CM15 8TG Tel: Lines are open between 9am and 5pm Monday to Friday. Calls may be recorded for training and monitoring purposes. Regulator RBS plc is authorised and regulated by The Financial Services Authority. Its address is: The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS We are entered on their register under number You can check this at: or by contacting them on About The Royal Bank of Scotland plc The Royal Bank of Scotland plc is a subsidiary of The Royal Bank of Scotland Group plc. The Royal Bank of Scotland Group plc is one of the world s foremost financial services companies. We work closely with our personal, commercial and large corporate and institutional customers to address their financial needs. Internationally, the RBS Group s brands include The Royal Bank of Scotland and RBS Coutts and NatWest in the UK, Citizens and Charter One in the United States and other well known financial services providers. This item can be provided in Braille or large print, please call us on to request this. For general queries, text phone users can contact us (using the Typetalk service) by prefixing our number with

17 Terms and Conditions Please read these Terms and Conditions carefully and keep them for future reference. They provide you with important information about the Plan and, together with the Plan brochure and the deposit programme, they form the agreement between you and us. When you sign the Application Form you are agreeing to these Terms and Conditions. The law which we take as the basis for establishing relations with you prior to the conclusion of the agreement is also the law of England. If you open a Plan via a wrapper platform (where permitted by RBS plc) then certain references to you in these Terms and Conditions, will be references to, you or the platform as your nominated agent, where applicable. Definitions Adviser Charge The amount you agree to pay to your financial adviser for their services. Account The deposit account opened by RBS plc for your Deposit Amount. An Account may be either a Direct Account or an ISA Account. Application Form The application form to invest in the Plan, either via an ISA or Direct Account, and can include a Transfer Application Form. Business Day Any day (other than Saturday or Sunday) on which banks are open for business in the UK. Cash ISA An Account established in accordance with the ISA Regulations and consists of a cash component only. Client Money Money held in accordance with the provisions of the FSA s Client Assets Sourcebook relating to client money. Deposit Amount The original deposit amount or the amount transferred from another Cash ISA deposited in the Account. This will not include any Adviser Charge. Deposit Taker In this case RBS plc is the licensed deposit taker. Direct Account Any part of your deposit that is not part of an ISA. Final Index Level The average of the closing levels of the Index on the 3rd of each month from, and including, 3 May 2018 to, and including, 3 May 2019 (13 monthly observations in total), or the next Business Day when not a Business Day, subject to adjustment in accordance with the provisions of the deposit programme as set out on page 9 of this Plan brochure. Final Valuation Date The date when we calculate the Final Index Level and the Maturity Value, which will be 3 May 2019, subject to adjustment in accordance with the provisions of the deposit programme as set out on page 9 of this Plan brochure. FSA The Financial Services Authority, or any successor organisation. FSA Rules The FSA s Handbook of Rules and Guidance, as amended from time to time. FSCS The Financial Services Compensation Scheme, or any successor organisation. Gross The interest rate paid before the deduction of tax. HMRC Her Majesty s Revenue & Customs. Index The FTSE 100 Index which is made up of 100 of the largest companies by market capitalisation listed on the London Stock Exchange. Initial Index Level The closing level of the Index on the Initial Valuation Date. Initial Valuation Date The date when we calculate the Initial Index Level, which will be 3 May 2013, subject to adjustment in accordance with the provisions of the deposit programme as set out on page 9 of this Plan brochure. ISA An Individual Savings Account, which is a scheme of investment managed in accordance with the ISA Regulations by the ISA Manager under terms agreed between the ISA Manager and the investor. ISA Account An Account opened by RBS plc in accordance with the ISA Regulations. ISA Investments Any assets, including the deposit, within the ISA at any time. ISA Manager The person who is approved to administer an ISA, and in respect of an ISA related to the Plan, means The Royal Bank of Scotland plc. ISA Regulations The Individual Savings Account Regulations 1998, as amended or replaced from time to time. Life of the Plan When determining the performance of the Index from its Initial Index Level, the period from the Initial Valuation Date to, and including, the Final Valuation Date. Maturity Date The date on which your original Deposit Amount and any additional return due to you is paid into a Client Money account, pending your further instructions, and which will be 10 May 2019, subject to adjustment in accordance with the provisions of the deposit programme as set out on page 9 of this Plan brochure. We will make payments to you within 5 Business Days of such date. Maturity Value The final value of the deposit (together with any interest), calculated as set out in the Plan brochure. Plan The UK Accelerated Growth Deposit Plan (March 2013), comprising the deposits placed through your ISA and/or your Direct Account, as specified in your Application Form(s). Plan Manager The company which is responsible for the administration of the Plan, which in this case is The Royal Bank of Scotland plc. Start Date The date on which the deposit is placed with RBS plc, which will be 17 May Transfer Application Form An application form to transfer your investment in an existing ISA to an ISA Account under the Plan. Valuation Date The two days per month when you can withdraw money from the Plan and which will be the 8th and the 21st of each month (or the next Business Day when not a Business Day). We, us, our and RBS plc The Royal Bank of Scotland plc. We are a member of The Royal Bank of Scotland Group plc (the RBS Group ). For information about our group of companies, please visit and click on About Us. 17

18 1. Application 1.1 The Royal Bank of Scotland plc is authorised and regulated by the FSA. Under these Terms and Conditions, we act as both Plan Manager (which means that we are responsible for the administration of your Plan) and as ISA Manager (which means that, where you invest via an ISA, we administer your ISA). 1.2 You may open a Plan on the terms of the Plan brochure, the deposit programme and these Terms and Conditions. To open a Plan, you should complete the relevant Application Form (either ISA or (non-isa) Direct Account) and send it to the address on the relevant Application Form. 1.3 Upon receipt of a duly completed Application Form and cheque (where required), the Plan Manager may accept your application subject to these Terms and Conditions, and subject to your financial adviser having satisfied various procedural requirements relating to the Plan. Completed Application Forms and payments must be received by the deadlines specified in the Plan brochure. If the application is rejected immediately, we will notify your financial adviser as soon as practicably possible and return your original Deposit Amount, without interest, as well as any Adviser Charge. In the event that we have initially indicated acceptance to you, we reserve the right to subsequently reject an application at any time prior to the Initial Valuation Date if the total subscriptions for the Plan do not exceed a minimum level or exceed a maximum level, or your financial adviser fails to continue to meet our requirements or if it would be illegal to continue the Plan. If we subsequently reject your application we will notify your financial adviser as soon as practicably possible and return your original Deposit Amount, without interest. In these circumstances, we will not return any Adviser Charge to you and you would need to speak to your financial adviser to request a refund. 1.4 Within five Business Days of accepting your application, we will confirm your application to open a Plan and confirm the date on which the deposit was made. 1.5 As soon as we receive the Adviser Charge from you it will cease to be your money and will be payable to your financial adviser. 1.6 The Adviser Charge will not be held as Client Money by RBS plc. In the event of our default prior to the payment of such Adviser Charge to your financial adviser, RBS plc will not return the Adviser Charge to you. Your financial adviser has agreed with RBS plc that in these circumstances your financial adviser will not seek any additional sums from you. 1.7 Money representing the original Deposit Amount held by RBS plc prior to the Start Date AND then, between either early termination or final redemption at the Maturity Date and final settlement with you, will be held by RBS plc as Client Money in an account with a third party bank appointed by RBS plc for these purposes. No interest will be payable on such Client Money balances held by the third party bank. The third party bank for the Plan will be Lloyds TSB Bank plc. 1.8 From the Start Date to the Maturity Date your money will be held by RBS plc on deposit as banker not trustee. It will not be held as Client Money. 2. ISA Accounts 2.1 You must subscribe to your ISA with either your own money or by the transfer of the proceeds of an existing ISA already held by you. Transfers of existing ISAs will normally be arranged by us with the existing Cash ISA manager(s) following our receipt of a Transfer Application Form from you, at which point we will contact your existing ISA manager(s) to arrange the transfer for you. Once the proceeds from the existing ISA have been transferred, your ISA will be subject to these Terms and Conditions. 2.2 To effect an ISA transfer you should complete a Transfer Application Form and send it to the address on the form. A cancellation notice will be sent to you upon our acceptance of your Transfer Application Form. 2.3 You may instruct RBS plc to transfer to another approved ISA Manager the whole of your ISA, subject to and in accordance with the ISA Regulations. Transfers will be processed by RBS plc in accordance with clause 12 within 5 Business Days of the relevant Valuation Date so long as valid instructions have been received by 12 noon on the Business Day prior to that Valuation Date. 2.4 You will immediately inform us in writing if you cease to be a qualifying individual for the purposes of the ISA Regulations. We will notify you if, by reason of any failure to satisfy the provisions of the ISA Regulations, an ISA has, or will, become void. Where an ISA becomes void for any reason, in the absence of instructions otherwise from you, we will continue to hold the Deposit Amount, but in a Direct Account and you will lose any favourable tax treatment applicable. 2.5 We shall not accept any further amounts into an ISA if the ISA Regulations no longer give you the right to invest in that ISA. 2.6 Any ISA Investments shall be in, and must remain in, your beneficial ownership and must not be used as security for a loan. 3. Taxation 3.1 Under current legislation, a deposit held within an ISA is not subject to UK Income Tax and any income on your deposit will be disregarded for the purposes of the calculation of UK taxes. 3.2 Where, however, your deposit is held through the Direct Account (and therefore not subject to the ISA tax shelter) you may be subject, depending on your personal circumstances, to UK tax on any income received. These statements are based on current legislation, regulations and practice, all of which may change. 18

19 3.3 Where any deduction or withholding for or on account of tax is required by law (a Tax Deduction ) from any amount otherwise payable, we shall be entitled to make such Tax Deduction and shall not be required to make any increased payment to compensate you for such Tax Deduction. 3.4 If you are an individual ordinarily resident in the UK, eligible to be paid interest gross of tax, and wish to be paid interest gross of tax on a Direct Account, you can download an R85 form from HM Revenue & Custom s website at and send us your completed R85 form at: RBS Administration, BNY Mellon House, Ingrave Road, Brentwood, Essex CM15 8TG, together with a covering letter stating your customer reference. 4. Death In the event of your death, your ISA will lose its ISA status immediately, and any income after that date will not benefit from the ISA tax shelter. The deposit forms part of your estate for Inheritance Tax purposes and, accordingly, we shall act on the instructions of your personal representatives. Your personal representatives can close the Plan or, subject to these Terms and Conditions, transfer your deposit to your beneficiary(ies). 5. Maturity Under the terms of the Plan, the final value of the Plan will be calculated on the Final Valuation Date. Prior to the Maturity Date, we will contact you to inform you of your options at maturity and any action required by you. Upon receipt of your valid instructions, we will process them and will meet your request within 5 Business Days of the Maturity Date or receipt of your instructions, if later. Payment(s) will be made in accordance with clause 12 and subject to any requirements under clause 17. Any sums owing to you, that are not immediately paid, will be held by us as Client Money. Interest will not be paid on such sums. We may return the funds to you if we don t receive your instructions. 6. Conflicts of Interest 6.1 RBS plc is a multi-service financial institution, and occasions can arise where we, one of our clients or another member of the RBS Group, may have some form of conflict of interest in relation to the business which is being transacted for you. RBS plc maintains a Conflicts of Interest policy as required by the FSA Rules to manage any such conflict to ensure that customers are not affected by any conflict. In the event that it is not possible to properly manage any conflict, we shall inform you as soon as possible and obtain your instructions. 6.2 For the avoidance of doubt, nothing in this clause will restrict us from providing services to other customers. 7. Compensation 7.1 RBS plc is a member of the FSCS, which means that you may be entitled to compensation in the event of our default. Further information is available on request, but in broad terms, your rights are as follows: (a) Money held by us as Client Money will be returned to you and will not be affected by our default. (b) The third party bank that will hold Client Money is also a member of the FSCS; on its default, if you are an eligible claimant under the compensation scheme rules, you may be entitled to compensation, currently of up to 85,000. (c) If you are an eligible claimant under the compensation scheme rules, you may be entitled to compensation of up to 85,000 on our default when we hold the deposit. 7.2 Deposits with RBS plc, Direct Line, the One Account, Child & Co, Drummonds and Holts are all covered by a single FSA authorisation. This means the total deposits with these firms will count to one compensation limit. For further information on the conditions governing compensation and details on how to apply, please refer to the FSCS at 8. Complaints 8.1 If you wish to complain about the Plan or the service we provide to you as the Plan Manager or as the ISA Manager, we have procedures designed to resolve your complaint effectively. Initially you should write to: RBS Administration, BNY Mellon House, Ingrave Road, Brentwood, Essex CM15 8TG. 8.2 You may have a right to complain to the Financial Ombudsman Service if you are not satisfied with our resolution of your complaint. Further details are available on request. 9. Cancellation Rights 9.1 RBS plc will give you the right to cancel your Plan within 14 days of the date you receive our letter confirming our acceptance of your Application Form in accordance with the requirements of the FSA Rules. We will deem you to receive our letter confirming our acceptance of your Application Form two business days after such letter is posted to you. You will also be informed of your right to cancel in the information that we send you on receipt of your Application Form. Alternatively you can write to us at RBS Administration, BNY Mellon House, Ingrave Road, Brentwood, Essex CM15 8TG. If you do so, please provide your name, address and reference number with clear instructions to cancel your investment. 9.2 If you exercise your right to cancel (or if your application is rejected) within 14 days and we receive such cancellation notice before the Start Date, we will return your original Deposit Amount without any interest. Valid cancellation notices received five calendar days or less before the Start Date will be processed at the next available Valuation Date after the Start Date (see clause 11.7), and you will receive your original Deposit Amount, without any interest, after such Valuation Date. 19