Premium Kick-Out Plan 2

15% per annum with 5 early maturity opportunities

Key Features

  • Investment returns linked to the performance of ten leading companies in the FTSE 100™ (the Index).
  • Return of capital linked to the performance of the FTSE 100™ (the Index).
  • The ten FTSE 100 companies areAstraZeneca, BG Group, BHP Billiton, BP plc, British American Tobacco, GlaxoSmithKline, HSBC Holdings, Rio Tinto, Royal Dutch Shell (Class A shares) and Vodafone. These accounted for slightly under 45% of the market value of the Indexon 18th April 2012.
  • Early maturity will be triggered if on any Annual Measurement Date, the closing levels of at least eight of the ten Shares are equal to or greater than their Opening Levels, at which point the Plan will make a growth payment of 15% for each year it has been in force.
  • 100% capital return provided the Final Level of the FTSE 100is not more than 50% below its Opening Level.
  • In the event of a capital loss occurring, capital will be reduced by the same percentage that the Final Level of the FTSE 100 is below its Opening Level.
  • Available to 23rd May 2012

Target Market

This investment could be suitable as part of an investment portfolio for investors who

  • understand and are used to equity based investments, and
  • are able to invest for a period of up to six years, and
  • are prepared to accept investment risk to their capital in return for a higher potential growth than would be available via a deposit based investment

Key Dates

Offer period

11th May 2012 – ISA transfer applications

18th May 2012 – applications with cheques

23rd May 2012 –applications with bank transfers

Strike Date & Opening Levels

Close of Business on 25th May 2012

Final Levels

Close of Business on 25th May 2018

Annual measurement dates

Close of Business on 28th May 2013, 27th May 2014, 26th May 2015,

25th May 2016, 25th May 2017

Maturity date

8th June 2018

You should refer to the brochure which contains full details of the Premium Kick-Out Plan 2.

Telephone enquiries to:020 7904 1010or email to

Key facts

Full Investment Term / Six years and 14 days, with the potential for early maturity. Early maturity will be triggered if the levels of eight or more of the shares are at or above their respective Opening Levels on any Annual Measurement Date of the Plan.
Availability / As direct investments, ISAs, ISA transfers, and for pension funds, trustees and companies.
Shares / AstraZeneca, BG Group, BHP Billiton, BP plc, British American Tobacco, GlaxoSmithKline, HSBC Holdings, Rio Tinto, Royal Dutch Shell (Class A shares) and Vodafone (‘the Shares’).
Investment Return / 15% per annum (simple) for each year the Plan is in force, so the returns at each possible early maturity date would be 15% (end of year 1), 30% (end of year 2), 45% (end of year 3); 60% (end of year 4); 75% (end of year 5) or if the plan runs a full six year term and the Final Levels of eight or more shares are at or above their respective Opening Levels, 90%. If the plan has not kicked out early and the Final Levels of three or more Shares are below their respective Opening Levels, no investment return will be payable.
Capital Return / Capital will be returned in full as long as the Final Level of the FTSE 100™ is at or above 50% ofits Opening Level. If not, capital will be reduced by the same percentage the Final Level of the index is below its Opening Level.
Please see the brochure for a full explanation of the calculation.
Counterparty Risk / The counterparty isBNP Paribas Arbitrage Issuance B.V. which issues the securities with a guarantee provided by BNP Paribas,a major financial institution with a credit rating as at 13th April 2012 of ‘AA-’ by Standard and Poor’s. If the financial institution were to fail to meet the repayments due to us, investors could lose some or all of their investment. Counterparty risk is common to all similar investments.
Tax / Under current tax legislation, it is our understanding that, gains on assets held in an ISA will be free from any tax, while gains on direct investments will be subject to Capital Gains Tax.
Charges / We buy the Securities at an agreed price that covers all establishment and administration costs, fees and expenses payable to ourselves and each of the financial institutions involved and any commission we pay Financial Advisers. Total charges over the full six year term will be up to a maximum of 8%.
Interest / Interest will be credited on subscriptions received and held in our client account up to the investment date, if it is £10.00 or more.
Commission / 3%
Securities / Securities will be structured to provide returns shown in the plan brochure, and purchased for each investor. These may be notes, warrants, shares or deposits depending on the nature of the investment. The Securities for this Plan will be Certificates.

Details of the investment are set out in the Premium Kick-Out Plan2 brochure, which incorporates the Terms and Conditions. All potential investors should read the literature carefully and make sure they understand how the Plan works.

This information is for Financial Advisors only and should not be presented to, or relied upon by, private investors.