Guaranteed 5 Year FTSE 100 Plan 6

Transcription

1 Accumulation Investment Income Structured Guaranteed 5 Year FTSE 100 Plan 6 A guaranteed return of initial deposit at the Plan Maturity Date Option 1: 500% of FTSE 100 growth over 5 years, subject to a maximum return of 50% Option 2: 10% minimum return or, if greater, 100% of FTSE 100 growth over 5 years, subject to a maximum return of 50% Limited offer ends: 20 February 2009

2 Guaranteed 5 Year FTSE 100 Plan 6 This brochure has been prepared by Investec Structured Products which is a trading name of Investec Bank (UK) Limited, which is part of the Investec Group of Companies ( Investec ). Investec is an international specialist banking group that provides a diverse range of financial products and services to a niche client base in three principal markets, the United Kingdom, South Africa and Australia, as well as certain other countries. The group was established in 1974 and currently has approximately 6,000 employees. Investec focuses on delivering distinctive profitable solutions for its clients in five core areas of activity: Capital Markets, Private Client Activities, Investment Banking, Asset Management and Property Activities. Key events and dates Offer periods Direct investments and ISAs: 12 January to 20 February 2009 ISA transfers: 12 January to 6 February 2009 Plan dates Investment Date: 9 March 2009 Maturity Date: 10 March 2014 Contents Key events and dates 2 What are the aims of the Guaranteed 5 Year FTSE 100 Plan 6? 3 How to invest 4 What are the ways in which you can invest? 4 How is the rise or fall in the Index measured at maturity? 5 What might you get back at the end of the Investment Term? 5 Is this investment suitable for you? 6 What are the risks of the investment? 7 Your questions answered 9 Terms and Conditions 13 How to invest Cash ISA Direct investment (not via an ISA) Cash ISA transfer SIPP/SSAS Pension arrangements Trustee, Corporate, Offshore Bond and Charity investments For further details see page 4. Capitalised terms used in the brochure, unless otherwise defined, have the meanings given to them in the Terms and Conditions appearing on page 13 of this brochure. 2

3 What are the aims of the Guaranteed 5 Year FTSE 100 Plan 6? The Guaranteed 5 Year FTSE 100 Plan 6 is designed for the investor who is looking for guaranteed return of initial deposit at maturity, but with the added potential of growth linked to the performance of the FTSE 100 Index. The objective of the Plan is to deliver returns in excess of cash deposits while guaranteeing the initial deposit at the Plan Maturity Date. There are two investment options. For both options, FTSE 100 Index performance is measured by reference to an Initial Index Level and a Final Index Level as explained on page 5 and in the Terms and Conditions. Option 1: Target return 50% 500% of any rise in the FTSE 100 Index after 5 years, subject to a maximum of 50% growth: if at the end of the Investment Term, the Final Index Level is higher than the Initial Index Level, the Plan will pay an amount equal to your initial deposit plus 500% of any percentage growth, subject to a maximum return of 50% of your initial deposit. If, at the end of the Investment Term, the Final Index Level is less than the Initial Index Level, your initial deposit will be repaid without any growth at the Maturity Date. Option 2: Target return 50%, minimum return 10% 10% minimum return, or if greater, 100% of any rise in the FTSE 100 Index after 5 years, subject to a maximum of 50% growth: if at the end of the Investment Term, the Final Index Level is higher than 110% the Initial Index Level, the Plan will repay your initial deposit plus 100% of any percentage growth in the Index, subject to an overall maximum return of 50% of your initial deposit. If, at the end of the Investment Term, the Final Index Level is less than 110% of the Initial Index Level, the Plan will repay 110% of your initial deposit at the Maturity Date. Both options guarantee full repayment of your initial deposit at maturity. Important information If you need advice as to whether this Plan is suitable for you, you should consult a financial advisor. Investec does not offer advice or make any investment recommendations regarding this Plan. 3

4 Guaranteed 5 Year FTSE 100 Plan 6 How to invest If you are eligible to invest, simply complete and sign the relevant sections of the Application Form. Send your completed Application Form to your financial advisor, who will send it to: Investec Administration, PO Box 1008, St Albans, Hertfordshire AL1 9LZ. In the case of a direct investment, or ISA investment you should make out your cheque for the full amount of your subscription to Investec Bank (UK) Limited. Your subscription will only be invested after we receive a fully completed Application Form from your financial advisor. The application deadline is 5pm on 20 February 2009 (6 February 2009 for ISA transfers). What are the ways in which you can invest? There are several ways to invest in the Plan and you can choose any or all of these: Direct investment You can invest between 1,500 and 1,000,000 directly into the Plan. Returns are subject to Income Tax. Using your ISA allowance You can invest using your cash ISA allowance of up to 3,600, subject to the minimum of 1,500, if you have not already used all or part of it in this tax year. In each tax year you may only subscribe to one cash ISA. ISAs are only available to individuals who are resident and ordinarily resident in the UK; other restrictions may apply. Transferring an existing cash ISA investment into the Plan The minimum you can transfer from an existing cash ISA is 1,500, up to a maximum of 1,000,000. You can also transfer as many existing cash ISA investments as you wish, but your existing ISA manager may impose exit or other associated charges. 4

5 Other ways to invest You can also invest through a Self Invested Personal Pension (SIPP), Small Self Administered Scheme (SSAS) pension arrangements and Offshore Bonds. Direct Investment is also open to Corporate investors, including Partnerships, Trustees and Charities. Application Forms are available upon request from your financial advisor. References to the tax treatment of the product contained in this brochure are in respect of investments made directly by individuals or through an ISA. You should seek independent advice from your financial or tax advisor if you are unsure of the tax treatment of the product for your purposes. Tax rules and your benefit from them may change at any time. How is the rise or fall in the Index measured at maturity? The Plan is linked to the performance of the FTSE 100 Index. The rise or fall in the Index is measured by comparing the Initial Index Level and the Final Index Level. For both options, the Initial Index Level is the closing index level of the FTSE 100 Index on 9 March The Final Index Level is the average of the closing levels of the Index on each Business Day over the last 6 months of the Investment Term from, and including, 6 September 2013 to, and including, 7 March The use of this averaging process to calculate the Final Index Level can reduce the negative effects of any falls in the market shortly before maturity but, equally, it can also reduce the benefits of any market rises shortly before maturity. What might you get back at the end of the Investment Term? The table opposite shows examples of the potential returns from the Plan at maturity, based on certain performance levels of the FTSE 100 Index. Examples of potential maturity proceeds Based on an initial investment of 10,000 Final Index Level compared to the Initial Index Level Gross maturity proceeds based on an initial investment of 10,000 Option 1: Target return 50% Option 2: Target return 50% Minimum return 10% 75% higher 15,000 15,000 50% higher 15,000 15,000 25% higher 15,000 12,500 10% higher 15,000 11,000 No change 10,000 11,000 10% lower 10,000 11,000 25% lower 10,000 11,000 50% lower 10,000 11,000 75% lower 10,000 11,000 5

6 Guaranteed 5 Year FTSE 100 Plan 6 Early Bird Interest If you are eligible to participate in the Plan and we receive your cheque and Application Form before the Plan closing date of 20 February 2009, we will pay you interest of 3% per annum gross. Early Bird Interest earned on direct investments will begin once your cheque has cleared and will continue up to and including 8 March The interest you earn will be added to your investment into the Plan on 9 March Any such interest may, however, be subject to taxation, depending on your personal circumstances. Any Early Bird Interest earned within your cash ISA will not be subject to taxation. Is this investment suitable for you? This investment may be suitable for you if: You do not need access to your money over the next 5 years You want a tax-efficient investment using your ISA or SIPP/SSAS allowance You have a minimum of 1,500 to invest You want a guaranteed return of your initial deposit at the Plan Maturity Date This investment may not be suitable for you if: You are not looking for an investment linked to the performance of stock markets You want a regular income You do not have enough 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 1,500 to invest Important Information The information in this brochure does not constitute tax, legal or investment advice. Before you invest you should refer to the FSA website MONEYmadeclear which should ensure that you understand the benefits and the associated investment risks of this investment. Investec does not offer advice or make any investment recommendations regarding this Plan. If you need advice as to whether this Plan is suitable for you, you should consult a financial advisor. 6

7 What are the risks of the investment? Your circumstances could change and this might force you to sell your Investments early. If this happens you may get back less than the amount you originally invested. The value of the Plan will be determined by the price at which the Investments can actually be sold on the relevant Dealing Date. The levels and bases of taxation and reliefs from taxation can change at any time. The value and availability of any tax reliefs depends on individual circumstances. Any favourable tax treatment of ISAs, SIPPs and SSAS may not be maintained in the future and is subject to changes in legislation. Before you make a transfer of existing investments into this Plan you should consider any charges or costs for the transfer and the potential for loss of income or growth whilst the transfer is in process, and whether the risk to your initial deposit in this Plan is suitable for you. When Investec Bank (UK) Limited receives your investment, it will be deposited into a Client Money account at HSBC Bank plc ( HSBC ) until the Investment Date. In the event of Investec Bank (UK) Limited s insolvency during this period, your money will be protected. However, there is a risk that HSBC may fail to meet its obligations. In the event of HSBC s insolvency, your money will not be protected and you must rely on your right of recourse to the Financial Services Compensation Scheme. You may lose all or part of your initial investment. At the Investment Date your money will be pooled and transferred to an account at Investec Bank (UK) Limited. There is a risk that Investec Bank (UK) Limited may fail to meet its obligations between this transfer and the maturity of the deposit. In the event of Investec Bank (UK) Limited s insolvency your deposit will not be guaranteed and you must rely on your right of recourse to the Financial Services Compensation Scheme. You may lose all or part of your initial deposit. Investec Bank (UK) Limited s capacity to meet its financial commitments is considered stable by a leading credit rating agency, FitchRatings. 7

8 Guaranteed 5 Year FTSE 100 Plan 6 What are the risks of the investment? continued The FTSE 100 Index is a capital-only index and it takes no account of dividend returns you would receive had you held the referenced shares directly. As a result you will not receive any dividend payments or distributions. Past performance of the FTSE 100 Index should not be seen as an indication of future performance. The return from each Plan is dependent on the Final Index Level which is the average of the closing levels of the Index on each Business Day from, and including, 6 September 2013 to, and including, 7 March The use of this averaging process to calculate the Final Index Level can reduce the negative effects of any falls in the market shortly before maturity, but, equally, it can reduce the benefits of any market rises shortly before maturity. You should think carefully about the benefits and risks of this Plan and whether it suits your personal circumstances and attitude to risk. We also recommend that you take professional advice before investing. 8

9 Your questions answered Q: To whom is this investment available? A: To invest in the Plan you must be aged 18 or over and you must also be resident and ordinarily resident in the UK for tax purposes. For ISA applications we will also need your date of birth and National Insurance Number before we process your application. Q: What will happen if I invest before the closing date of 20 February 2009? A: If you are eligible to participate in the Plan and we receive your cheque and Application Form before the closing date of 20 February 2009, we will pay you interest of 3% per annum gross, from when your cheque has cleared, until 8 March The interest you earn will be added to your investment into the Plan on 9 March For direct investments, interest will be paid net of lower rate tax at 20%. If you are a higher rate taxpayer a further liability will arise. If you are entitled to receive your interest gross (i.e. without tax deducted at source) please complete a form R85 and return it with your application. You can find a copy online at or call us on and we will send you one. Interest earned from a cash ISA will not be subject to tax. If you have any doubts as to your tax situation you should consult a financial advisor or tax advisor. Q: To which Index is performance of my investment linked? A: It is linked to the FTSE 100 Index which is a capitalisation weighted index of the 100 most highly capitalised companies traded on the London Stock Exchange. The Index currently includes companies such as BP, BT Group, Tesco and Marks and Spencer (as at 12 December 2008). The FTSE 100 Index is a capital-only index and it takes no account of dividend returns you would receive had you held the shares directly. As a result you will not receive any dividend payments or distributions. Q: What is the nature of my investment? A: Your investment will be an equity-linked structured deposit that is backed by securities and instruments that are designed to match the Investment Objectives of the Plan. From the Investment Date your deposit will be held with Investec Bank (UK) Limited. If you have any doubts whether this investment is suitable for you, you should contact your financial advisor. 9

10 Guaranteed 5 Year FTSE 100 Plan 6 Q: What will be the tax treatment of my return? A: Direct investments: If you invest directly into the Plan your return will be paid net of lower rate tax. If you are a higher rate tax payer a further liability will arise. If you are not a tax payer and are entitled to receive interest payments gross (i.e. without tax deducted at source) you will need to ensure that we hold a valid form R85 at the date your Plan matures. You can find a copy online at or call us on and we will send you one. A: ISA investments: Returns from cash ISAs are not subject to tax. A: ISA transfers: If you have other cash ISA investments you can transfer them into this Plan if you wish, in which case the tax efficient status of your investment will continue. The deadline for receiving cash ISA transfers from existing cash ISA managers is 6 February Before you decide to transfer existing cash ISAs you should consider the effect of any applicable charges of transferring your existing investments. You should also bear in mind the potential for loss of income or growth whilst the transfer is pending and whether the risk to your initial deposit in this Plan is suitable for your attitude to investment risk. You can transfer your existing cash ISAs into our cash ISA. You cannot transfer a stocks and shares ISA into a cash ISA. You are able to transfer some or all of your previous years subscriptions without affecting your annual ISA investment allowance. You are able to transfer current year subscriptions. Such transfers must be for the whole current year subscription in such cash ISA up to the day of transfer. Once the subscription is transferred it is treated as if it had been invested into our cash ISA. You will be able to make further subscriptions to our cash ISA up to the full remaining balance of your 3,600 maximum annual subscription to a cash ISA, subject to the overall 7,200 annual ISA allowance limit. The levels and bases of tax and tax reliefs are subject to change and the value of tax reliefs will depend on individual circumstances. Additionally, the favourable tax treatment of ISAs may not be maintained in the future. There is also a possibility of further taxes, in addition to those paid by the Plan Manager. If you are in any doubt as to the tax treatment of this Plan, please consult a financial advisor or tax advisor. 10

11 Q: Who is the Plan Manager? A: The Plan is issued by Investec Bank (UK) Limited (Registered No: England), which is authorised and regulated by the Financial Services Authority. Registered under Financial Services Authority No Investec Bank (UK) Limited does not offer investment advice or make any recommendations regarding this investment. If you have any doubt whether this investment is suitable for you, you should obtain professional advice. You should only invest if you understand and are comfortable with the risks. Q: What happens if I change my mind? A: When you first invest we will send you a cancellation notice which provides you with a 14 day period in which to change your mind. The Plan Manager will then return to you your cash subscription without interest. If the Plan Manager receives your cancellation notice after the close of the offer period, it will then return to you without interest any cash subscriptions in the Plan. You might not get back the amount you originally invested in the Plan. If you are transferring an existing cash ISA to us, the cancellation notice will be sent to you after we receive the proceeds from your previous ISA manager. If you should decide to cancel then we may repay the cash proceeds directly to you and you may lose any favourable tax treatment associated with the ISA. Q: What happens if I cash in my investment early? A: The Plan is designed to be held for the full term of five years. If, however, your circumstances change and you need to cash in your investment, you may, but we cannot guarantee what the cash value of your initial deposit investment will be at that point. If you cash in your investment early, we will pay you the value of your initial deposit investment in accordance with the prevailing market rate at that time, less any associated selling costs and transfer taxes, but please note this amount may be less than the amount you originally invested. We would need to receive an instruction in writing. Information on procedures for cashing in your investment early is provided in the Terms and Conditions. In addition, at the date at which you cash in your investment early, there will be a difference between the buying price and the selling price also known as the spread, this will be taken into account in determining the sum returned to you. Q: What happens at the end of the investment? A: On 10 March 2014 you may have the option to either cash in your Plan, or possibly transfer it to another plan offered by another plan manager, or to reinvest the proceeds into other products which may be available at that time from Investec Bank (UK) Limited. We will contact you shortly before the relevant Maturity Date to ask your preference. Until we receive your instructions we will hold your relevant Maturity Date proceeds on your behalf but will not pay any interest to you on your proceeds. 11

12 Guaranteed 5 Year FTSE 100 Plan 6 Q: When will I receive financial settlement? A: Within 7 Business Days of the Plan maturing subject to receipt of your written instructions on what alternate action to take with the maturity proceeds. Q: Are there any charges or expenses I have to pay in connection with the management and distribution of the Plan? A: We have allowed for all the costs and charges payable to third parties in relation to the management and distribution of the Plan when setting the return for the product, and these costs and charges are therefore already taken into account in the growth rates and index participation rates that are available. When calculating the returns from your investment, no other initial or ongoing charges will be deducted from these rates. Q: How much will any advice cost? A: If you require personal financial advice you should consult a financial advisor who will provide you with details of their costs. If you do not require any advice, commission may still be paid by us to a financial advisor. The amount paid will depend on the size of the investment. The payment of this commission by Investec Bank (UK) Limited will not affect the cost of the investment to you or the investment returns detailed in this literature. For your reference, any such amount will be included in your welcome letter. Q: What happens if I die? A: If you are aged 75 or younger at the Investment Date, we will pay to your estate a sum equal to the maximum of the market value of your Investment at the time of your death or your initial capital investment. The Plan, coupled with this feature, provides capital protection at Maturity or upon your death. Your estate can either elect this option or permit the Plan to remain open until Maturity. In either event, all Plan investments will be administered in accordance with the instructions from your personal representatives. If you are aged 75 or older at the Investment Date, all Plan Investments will be administered in accordance with the instructions of your personal representatives, and/or as part of probate/administration. ISA investments automatically lose their ISA status immediately upon the death of the holder. The investment can then be sold or transferred to beneficiaries. Q: How will you keep me informed? A: We will send you a written acknowledgement by the end of the next working day following receipt of your completed Application Form. After the start of the investment, we will send you an opening statement showing your balance. We will send you a further annual statement during December 2009, based on the value as at 30 November Q: What should I do if I have more questions? A: It is essential that you only invest in the Plan if you fully understand the benefits and associated risks. Where you have unanswered questions you should seek advice from a financial advisor or tax advisor. 12

13 Terms and Conditions Definitions (i) Account shall mean your ISA and/or Direct Account. (ii) Application Form means the Guaranteed 5 Year FTSE 100 Plan 6 application for an ISA or a Direct Account. (iii) Banking Day means a day on which commercial banks in London are open for general business (including dealings in foreign exchange and foreign currency deposits). (iv) Business Day means any day on which the Exchange and each Related Exchange is scheduled to be open for trading for its regular trading sessions, subject to such Business Day not being a Disrupted Day. (v) Calculation Agent means Investec Bank (UK) Limited acting as calculation agent. (vi) Client Money means the provisions of the FSA s Client Assets Sourcebook relating to client money. (vii) Dealing Date means the 1st and 11th Business Day in each month. (viii) Direct Account means any part of the Guaranteed 5 Year FTSE 100 Plan 6, which is not an ISA. (ix) Disrupted Day means any Business Day on which a relevant Exchange or any Related Exchange fails to open for trading during its regular trading session or on which a Market Disruption Event has occurred on any day that, but for the occurrence of a Disrupted Day, would have been a strike date, an averaging date, a Valuation Date, a potential exercise date, a knock-in determination day, a knock-out determination day or an expiration or termination date. (x) Early Bird Interest means interest payable for application monies received in advance of the Plan closing date, 20 February (xi) Exchange means The London Stock Exchange (LSE). (xii) Final Index Level means the average of the closing levels of the FTSE 100 Index on each Business Day from, and including, 6 September 2013 to, and including, 7 March (xiii) FSA means the Financial Services Authority. (xiv) FSA Handbook means the FSA Handbook of Rules and Guidance as amended from time to time. (xv) FSA Rules means the Rules included within the FSA Handbook promulgated by the FSA. (xvi) HMRC means Her Majesty s Revenue & Customs. (xvii) HSBC means HSBC Bank plc. (xviii) Index means the FTSE 100 Index. This product is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited. (xix) Index Sponsor means FTSE International Limited, a UK incorporated company which calculates the Index and which is owned jointly by the London Stock Exchange and the Financial Times. (xx) Initial Index Level means the closing index level of the FTSE 100 Index on Strike Date. (xxi) Investments means the initial deposit investments the Plan Manager holds on your behalf under the Plan. (xxii) Investment Date means 9 March (xxiii) Investment Objective means the objective of securing the return described in the brochure to which these Terms and Conditions are attached. (xxiv) Investment Term means the period 9 March 2009 to 10 March 2014 inclusive. (xxv) ISA 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 terms and conditions). (xxvi) ISA Manager means Investec Bank (UK) Limited. (xxvii) ISA Regulations means The Individual Savings Account Regulations 1998, as amended or replaced from time to time. (xxviii) Market Disruption Event means in respect of a share or an Index, the occurrence or existence on a Business Day of (i) a trading disruption at any time, or (ii) an exchange 13

14 Guaranteed 5 Year FTSE 100 Plan 6 disruption, at any time during the one hour period that ends at the relevant valuation time, or (iii) an early closure of the Exchange or Relevant Exchange(s), which the Calculation Agent acting in good faith and in a commercially reasonable manner determines is material. If any Valuation Date is a Disrupted Day, then in the case of an Index transaction, share transaction, Index basket transaction or share basket transaction, the Valuation Date shall be the first succeeding Business Day that is not a Disrupted Day, unless each of the eight scheduled Business Days immediately following the original Valuation Date is a Disrupted Day, in which case, the Calculation Agent acting in good faith and in a commercially reasonable manner and in accordance with prevailing market practices shall determine the level of the relevant Index or indexes, or value of the relevant shares. (xxix) Maturity Date means the date on which the Investments mature. (xxx) Plan means the Guaranteed 5 Year FTSE 100 Plan 6, comprising the Investments subscribed for through your ISA and/or your Direct Account, as specified in your Application Form(s). (xxxi) Plan Manager means Investec Bank (UK) Limited which is authorised and regulated by the FSA and bound by its rules. (xxxii) Related Exchange means each exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the FTSE 100 Index, including any transferee or successor to any such exchange or quotation system or any substitute exchange or quotation system to which trading in futures or options contracts relating to the FTSE 100 Index has temporarily relocated (provided that the Calculation Agent has determined that there is comparable liquidity relative to the futures or options contracts relating to the FTSE 100 Index on such temporary substitute exchange or quotation system as on the original Related Exchange). (xxxiii) Strike Date means 9 March 2009 or if such date is not a Business Day, the next following Business Day. The Plan Manager provides the Guaranteed 5 Year FTSE 100 Plan 6 to you on the following Terms and Conditions (of which the Application Form is a part): 1. On the receipt of a duly completed Application Form and cheque (or banker s draft, telegraphic transfer or any other means acceptable to the Plan Manager) the Plan Manager may accept your application subject to these Terms and Conditions. The Plan Manager reserves the right to reject an application for any reason. The Plan is not available outside the UK. The Plan Manager will give you the right to cancel your Plan within 14 days of the Plan Manager s acceptance of your Application Form in accordance with the requirements of the FSA Handbook. You will be informed of your right to cancel in the information that the Plan Manager sends you on receipt of your application. Alternatively you can write to Investec Administration, PO Box 1008, St Albans, Hertfordshire AL1 9LZ. If you do so, please provide your name and address and the Plan number with clear instructions to cancel your investment. If the Plan Manager receives your cancellation notice after the close of the offer period, and before the Strike Date, it will return to you without interest any cash subscriptions in the Plan. If the Plan Manager receives your cancellation notice after the Strike Date, it will return to you without any interest cash subscriptions that may be subject to a market value adjustment. Where you do not exercise your cancellation rights, the Plan will continue in line with the Terms and Conditions. 2. You must subscribe to your cash ISA with your own cash or by transfer of cash from an existing cash ISA. Transfers of cash from existing cash ISAs will normally be arranged with the existing ISA managers. Once the cash from the existing cash ISA has been transferred, your ISA will be subject to these Terms and Conditions. In respect of a cash ISA transfer, a cancellation notice will be sent to you after the funds are received from your previous ISA manager. If, following an ISA transfer you cancel your ISA, you may lose the favourable tax treatment applicable. The Plan Manager reserves the right to withhold any amounts under 1 which cannot be applied to the Plan. The remaining pence will not be returned to you. 14

15 3. All transactions relating to this Plan are covered by the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007 (as amended from time to time) and the guidance notes provided by the Joint Money Laundering Steering Group. The Plan Manager is responsible for compliance with these regulations. You may be asked for proof of identity and evidence of address when investing or on maturity. The Plan Manager may also make enquiries of third parties in verifying identity. This would include electronic verification through a third party provider. 4. Individual Savings Accounts ( ISAs ) can be either cash or stocks and shares. If you are subscribing for a cash ISA you must not have subscribed and may not subscribe to another cash ISA in the same tax year. Please note that the Plan Manager only offers the cash component in this investment. 5. You will immediately inform the Plan Manager in writing if you cease to be a qualifying individual for the purposes of the ISA Regulations. The Plan Manager will notify you if, by reason of any failure to satisfy the provisions of the ISA Regulations, an ISA has, or will, become void. 6. The Plan Manager shall not accept any further amounts into an ISA if the ISA Regulations no longer give you the right to invest in that ISA. 7. For Direct Account investments, when Investec Bank (UK) Limited receives your investment, it will be deposited into a Client Money account at HSBC. In the event of Investec Bank (UK) Limited s insolvency during this period, your money will be protected. However, there is a risk that HSBC may fail to meet its obligations. In the event of HSBC s insolvency your money will not be protected. At the Investment Date, your money will be pooled and transferred to a deposit account at Investec Bank (UK) Limited. In the event of Investec Bank (UK) Limited s insolvency during this period, your money will not be protected. In either scenario you must rely on your right of recourse to the Financial Services Compensation Scheme, but you may lose all or part of your initial deposit investment. Except as stated below interest will not be paid on monies held within client accounts. For the avoidance of any doubt no interest is payable on client Money held after the Maturity Date or following an early withdrawal from the Plan. Where Early Bird Interest is paid, it will be after deduction of any tax payable and it will be credited to your Account. Early Bird Interest will begin to accrue after your cheque has cleared, provided it is received before the Plan closing date of 20 February 2009 and will be payable at a rate of 3% per annum gross until 8 March The amount of interest invested or reinvested will be rounded down to the nearest whole number of pounds and the balance retained by the Plan Manager. It will be credited once on a simple interest basis. The amount of interest invested or reinvested will be subject to a deduction of lower rate tax of 20% for direct investments. For direct investments a further tax liability may exist for higher rate taxpayers. If you are entitled to receive your interest gross (i.e. without tax being deducted) please complete an R85 registration form and return it with this application. You can find a copy online at Or call us on and we will send you one. 8. For ISA Investments, when Investec Bank (UK) Limited receives your investment, it will be deposited into an ISA Client Money account at HSBC. In the event of Investec Bank (UK) Limited s insolvency during this period, your money will be protected. However, there is a risk that HSBC may fail to meet its obligations. In the event of HSBC s insolvency your money will not be protected. At the Investment Date your money will be pooled and transferred to Investec Bank (UK) Limited. In the event of Investec Bank (UK) Limited s insolvency during this period, your money will not be protected. In either scenario you must rely on your right of recourse to the Financial Services Compensation Scheme, but you may lose all or part of your initial deposit investment. Except as stated below interest will not be paid on monies held within client accounts. For the avoidance of any doubt no interest is payable on Client Money held after the Maturity Date or following an early withdrawal from the Plan. Early Bird Interest will be paid gross. Early Bird Interest will begin to accrue after your cheque has cleared, provided it is received before 15

16 Guaranteed 5 Year FTSE 100 Plan 6 the Plan closing date of 20 February 2009 and will be payable at a rate of 3% per annum gross until 8 March The amount of interest invested or reinvested will be rounded down to the nearest whole number of pounds and the balance retained by the Plan Manager. It will be credited once on a simple interest basis. 9. Under the terms of the Plan, the Maturity Date will occur after 5 years. This is explained in the brochure of which these Terms and Conditions are part, under the section headed What are the aims of the Guaranteed 5 Year FTSE 100 Plan 6. The Plan Manager will realise the proceeds of your initial deposit investment on the Maturity Date. The Investments are structured so that their value on that date will correspond to the amount you are due to receive from your Plan in accordance with the Investment Objective. The Plan Manager will contact you prior to the Maturity Date to inform you of any action required by you. The Plan Manager may, at its discretion, repay maturity proceeds to you by transferring the funds into the bank or building society account from where the initial deposit investment originated. Should this occur you will be informed in writing by the Plan Manager. You should note that once the Plan has matured, the proceeds from the Plan do not earn interest if held by the Plan Manager. 10. For UK residents, the proceeds of an ISA will not be subject to either UK income tax or UK capital gains tax and any gains or losses on your investment will be disregarded for the purposes of UK tax. Where Investments are held through a Direct Account your return will be paid net of lower rate tax. If you are a higher rate tax payer a further liability will arise. If you are not a tax payer and are entitled to receive interest payments gross (i.e. without tax deducted at source) you will need to ensure that we hold a valid form R85 at the date your Plan matures. You can find a copy online at or call us on and we will send you one. These statements are based on current legislation, regulations and practice, all of which may change. 11. Occasions can arise where the Plan Manager, or one of its other clients, will have some form of interest in business which is being transacted for the Plan. If this happens, or the Plan Manager becomes aware that its interests or those of one of its other clients conflict with your interests, you will be informed and asked for your written consent before any transaction is carried out. A copy of Investec Bank (UK) Limited s conflicts policy can be obtained upon request from Investec Administration, PO Box 1008, St Albans, Hertfordshire AL1 9LZ ( ). A summary can be found at The Plan Manager will maintain insurance cover to indemnify you against, amongst other risks, misappropriation of funds or securities by any employee of the Plan Manager. 13. At all times you or your nominated agent may request sight or a copy of entries in the Plan Manager s records relating to your Investments in accordance with the rules of the FSA Handbook. Such records will be maintained for a minimum of seven years after the Investment Date. 14. The Plan Manager will supply you annually with a report on the value of the Investments held through your ISA and/or your Direct Account. 15. The Plan Manager may employ agents in connection with the services it is to provide and may delegate any or all of its powers or duties to any delegate(s) of its choice in accordance with the ISA Regulations. The Plan Manager will satisfy itself that any person to whom it delegates any of its functions and responsibilities under these Terms and Conditions is competent to carry out those functions and responsibilities. The Plan Manager shall not be liable for the fraud, negligence or willful default of any such agent or delegate. This shall not exclude or restrict any liability towards you to which, by virtue of the ISA Regulations, the Financial Services and Markets Act 2000, or the FSA Handbook, the Plan Manager may be subject. 16. The Plan or any Account comprised in it may be terminated immediately by the Plan Manager on giving written notice to you if in its opinion it is impossible to administer the Plan or that Account in accordance with the ISA Regulations or you are in breach of the ISA Regulations. 16

17 17. The ISA will terminate automatically with immediate effect if it becomes void under the ISA Regulations. The Plan Manager will notify you in writing if the ISA becomes void. 18. The Plan Manager may terminate the Plan on one month s notice if you fail to pay any money due under these Terms and Conditions or are in breach of any of these Terms and Conditions. 19. The Plan Manager may terminate the Plan at any time by giving three months notice to you to that effect. 20. You may terminate the Plan or any Account at any time by giving written notice to that effect to the Plan Manager. The notice must specify whether you wish the redemption proceeds of the Investments to be paid directly to you or, for an ISA, to be transferred to another ISA manager. Such notice must be received no later than close of business two days prior to the next Dealing Date. Early encashment may result in a loss of some of your initial deposit investment. 21. Termination of the Plan or any Account will not affect the settlement of any outstanding fees and will not affect any legal rights or obligations which may have already arisen or any provision of these Terms and Conditions which is expressly or by necessary implication intended to survive termination. On termination, the Plan Manager will promptly account to you for the proceeds of sale of the Investments held through your Plans save that it will be entitled to retain any funds required to pay any outstanding tax or other amounts payable from the Plan. 22. On your death, your ISA will lose its ISA status immediately and your Plan will be dealt with in accordance with the instructions of your personal representatives. Your personal representatives can sell your Investments or transfer them to your beneficiaries. 23. The returns which you are due to receive, in accordance with the Investment Objective, are net of all anticipated charges and expenses due to third parties (excluding any tax that you may be liable to pay, or charges we may reasonably require you to pay in respect of significant taxation changes). These charges are estimated to be not more than 5%, excluding any such tax or charges for taxation changes, but including commission paid to any financial advisor who arranged the investment. No other charges are anticipated. If you terminate your Plan before maturity, no further charges will be deducted nor will those taken at the Investment Date be rebated. If you cancel your Plan, you will receive a full refund of any charges. Please note that it is possible that you will be liable to pay additional taxes or costs that are not paid, or imposed, by us. 24. The Plan Manager may vary these Terms and Conditions by giving you reasonable written notice: (a) to comply with any changes to the ISA Regulations, or other relevant legislation, HMRC practice and the FSA Rules (or the way they are applied); (b) to make them fairer to you or to correct a mistake (provided this correction would not adversely affect your rights); or (c) in order to manage your Plan more effectively, or to introduce additional facilities or options within your Plan. The Plan Manager will notify you of any such change as soon as is reasonably practicable after the change has been made, if you have not been given prior notice. 25. The Plan Manager will exercise due care and diligence in managing your Plan. However, the Plan Manager will not be liable to you: (a) for any loss, depreciation or fluctuation in the value of the Investments held within your Plan, except as a result of fraud, negligence or willful default by the Plan Manager; (b) if the Plan Manager cannot carry out its responsibilities because of circumstances beyond its reasonable control; or (c) for the acts or omissions of any professional advisor who arranged your investment in a Plan. The Plan Manager will exercise its authority under these Terms and Conditions in an appropriate way. However, whilst the Investments will be structured with a view to meeting the Investment Objective on the Maturity Date, the Plan Manager is unable to (and does not) guarantee 17

18 Guaranteed 5 Year FTSE 100 Plan 6 that the Investment Objective will be met. You acknowledge that you have read and understood these Terms and Conditions and the risk factors set out in the brochure provided to you in connection with your Plan. These may contain provisions allowing for (a) adjustments to the timing of calculation of entitlements and (b) the termination of the Investments, including (without limitation) in circumstances where the Plan Manager is in default. No provision in these Terms and Conditions will operate so as to exclude or limit the liability of the Plan Manager to the extent that this would be prohibited by law or the FSA Rules. 26. You authorise the Plan Manager to provide HMRC with all relevant particulars of the Direct Account, ISA and its investments which HMRC may reasonably request at any time. 27. At all times during the continuance of the Plan, you will remain the beneficial owner of the Investments held in the Plan and the Investments must not be used as security for a loan. 28. Partial withdrawals or partial ISA transfers are permitted, subject to a 1,500 minimum. 29. Subject to Clause 20, on the instructions of the investor and within the time stipulated by the investor, the cash proceeds from the ISA or part of the ISA shall be transferred to another ISA manager. 30. Subject to Clause 20, on the instructions of the investor and within the time stipulated by the investor, all or part of the Investments held in the ISA and proceeds arising from those Investments shall be transferred or paid to the investor. 31. For your security and for training and monitoring purposes telephone conversations may be recorded. 32. The Plan Manager shall continue to treat unclaimed maturity or allocated funds as client money, in accordance with the FSA Handbook, for a period of 6 years. (Interest will not be paid on such funds.) 33. In the event of any failure, interruption or delay in the performance of its obligations resulting from breakdown, failure or malfunction of any telecommunications or computer service, industrial disputes, failure of third parties to carry out their obligations, acts of governmental or supranational authorities, or any other event or circumstance whatsoever not reasonably within its control, the Plan Manager may be unable to fulfill its financial responsibilities in the market then your ability to realise your investment may be restricted and the Plan Manager shall not be liable or have any responsibility of any kind for any loss or damage you incur or suffer as a result. 34. Nothing in these Terms and Conditions shall restrict the Plan Manager s right to provide investment services to others. 35. These Terms and Conditions shall be governed by English law and will become effective on acceptance by the Plan Manager of your signed Application Form. The Plan Manager will write and speak to you in English during the duration of your investments. 36. The Plan Manager will treat you as a Retail Client for the purpose of the FSA Rules. You may request to be treated as a Professional Client or Eligible Counterparty, however, if you do so you will lose the protections afforded to Retail Clients under the FSA Rules. 37. The value of the Investments and income (if any) from them may fall as well as rise due to market movements and, where applicable, exchange rate fluctuations. 38. The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs will depend on individual circumstances. 39. If you make a valid claim against the Plan Manager or your financial advisor in respect of the investments arranged for you under these Terms and Conditions and they are unable to meet their liabilities in full, you may be entitled to compensation from the Financial Services Compensation Scheme. Deposit taking business is covered under this scheme. The maximum cover available from 7 October 2008 is 50,000 per authorised institution for a sole Deposit Account, or 100,000 per authorised institution for a joint Deposit Account. Details of the cover provided by the 18

19 Scheme are given in a leaflet, which the Plan Manager will send to you at your request. Further information is available from the FSA and the Financial Services Compensation Scheme. If the performance of the investments does not match any illustrated benefits there will not, for that reason alone, be any entitlement to any compensation under the Financial Services Compensation Scheme. 40. Any complaint about any aspect of the service received should be made to Investec Administration, PO Box 1008, St Albans, Hertfordshire AL1 9LZ. (Telephone no ) If your complaint is not dealt with to your satisfaction you can complain to the Investment Division, Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Making a complaint will not prejudice your right to take legal proceedings. Investec Bank (UK) Limited does not offer investment advice or make any recommendation regarding this investment. Investec Bank (UK) Limited is authorised and regulated by the Financial Services Authority. Registered under Financial Services Authority No Registered and incorporated in England No

20 If you have difficulty in reading our literature, please call us on We can supply this in a range of formats including large print, audio and Braille. Registered and incorporated in England No: Investec Bank (UK) Limited is authorised and regulated by the Financial Services Authority. Registered under Financial Services Authority No This brochure is printed on 75% recycled paper. Please recycle this brochure responsibly when you have finished with it. Index provider disclosure The Plan is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or by the London Stock Exchange Plc ( LSE ) or by The Financial Times Limited ( FT ) and neither FTSE nor the LSE nor FT makes any warranty or representation whatsoever, expressly or impliedly either as to the results to be obtained from the use of the FTSE 100 Index (the Index ) and/or the figure at which the Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated solely by FTSE. However, neither FTSE nor the LSE nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor the LSE nor FT shall be under any obligation to advise any person of any error therein. FTSE, FT-SE and Footsie are trade marks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE under licence /TAL 1108